Prior to you sign your name to a solar panel lease on your house in San Diego CA 92137 you have to comprehend what you are truly getting into. If you’re in business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Maybe you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the first appointment you’ve got nearly no opportunity of closing it later on. Why not change your approach do exactly what’s right for the customer and get on board with a business that provides market leading value (rate + quality + service).
The Solar Lease in San Diego CA 92137 or PPA Sales Pitch generally includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you build up all of those regular monthly payments throughout the regard to the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit history to qualify for the lease you can utilize the bank’s cash to finance your solar system with zero money down.
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2. No concerns. The leasing/PPA company in San Diego CA 92137 is responsible for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which is about just maintenance needed on a solar system. Solar systems are extremely low maintenance with no moving parts and feature incredibly long manufacturer’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar equipment producers are larger and more solvent than the solar leasing business by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping track of for the life of the system, using the very same monitoring equipment utilized by the leasing company.
5. Just sign a contract and the leasing business does everything else.
When buying a system you also just sign a contract and the solar professionals does everything else. Difference is the leasing business agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t influence your financial obligation to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high price. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that likewise do not hit your personal credit or influence your debt to income ratio. And those programs permit practically any property owner to go solar despite their credit score.
Now for the six main disadvantages to a solar lease in San Diego CA 92137 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are buying solar on your roof! You’re just providing them an ensured 20 year capital!
2. Now you have two utility bills not simply one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have two utility business you have to pay each month.
3. Many leases or PPAs bring an annual cost escalator, normally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You will not have the ability to declare the 30 % federal tax credit and any appropriate money refunds. You likewise will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can enjoy free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be problematic. Solar leases require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not want presuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the cost of electrical power from the utility.