Before you sign your name to a solar panel lease on your house in San Diego CA 92138 you have to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are reading if they do even a small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get so many cancellations and why if you do not close the deal on the very first consultation you’ve got virtually no possibility of closing it later on. Why not alter your technique do exactly what’s right for the customer and get on board with a company that supplies market leading value (rate + quality + service).
The Solar Lease in San Diego CA 92138 or PPA Sales Pitch typically consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all those month-to-month payments during the regard to the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Many zero cash down solar loans are offered. If you have the credit score to get the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92138 is liable for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which is about just maintenance required on a solar system. Solar systems are exceptionally low upkeep without any moving parts and feature incredibly long maker’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment makers are larger and more solvent than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, using the very same tracking equipment utilized by the renting business.
5. Just sign an agreement and the renting business does everything else.
When buying a system you likewise simply sign a contract and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your financial obligation to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high cost. If this is among your major concerns there are financing choices for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your debt to earnings ratio. And those programs enable nearly any house owner to go solar despite their credit score.
Now for the 6 primary downsides to a solar lease in San Diego CA 92138 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are buying solar on your roofing system! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have 2 energy bills not just one! In essence the leasing company ends up being a second utility. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. The majority of leases or PPAs carry a yearly cost escalator, normally 2.9 %. So while you may be saving cash today in a several years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any appropriate cash rebates. You likewise won’t have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can enjoy totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be problematic. Solar leases need the brand-new owner to assume the lease and terms. If you read any of the above you can most likely 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 cost escalator in the lease has actually now raised the expense of electrical energy to equal or more than the expense of electrical energy from the energy.