Before you sign your name to a solar panel lease on your home in San Diego CA 92139 you need to understand what you are really getting into. If you’re in business of selling solar leases maybe you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a percentage of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will check out when they do 30 minutes of study online before committing to a 20 year contract. Possibly you’ll now comprehend why you get so many cancellations and why if you do not close the deal on the very first visit you’ve got virtually no chance of closing it later on. Why not change your method do what’s right for the consumer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92139 or PPA Sales Pitch normally consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying nothing. If you add up all of those monthly payments during the regard to the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Numerous zero cash down solar loans are available. If you have the credit report to get the lease you can utilize the bank’s cash to finance your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in San Diego CA 92139 is responsible for all maintenance and repairs on the system.
The leasing company will not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are incredibly low maintenance with no moving parts and have very long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment manufacturers are larger and more solvent than the solar leasing business by many multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting business guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, utilizing the exact same monitoring equipment utilized by the renting company.
5. Simply sign a contract and the renting company does everything else.
When buying a system you likewise simply sign a contract and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t impact your debt to income ratio.
This might be the only real benefit of the lease but it comes at an awefully high cost. If this is one of your major issues there are financing alternatives for a purchase (PACE and HERO) that also do not strike your individual credit or influence your debt to income ratio. And those programs allow virtually any homeowner to go solar no matter their credit rating.
Now for the six major drawbacks to a solar lease in San Diego CA 92139 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are buying solar on your roof! You’re simply offering them an ensured 20 year cash flow!
2. Now you have two energy bills not just one! In essence the renting business becomes a second utility. So, sign a solar lease and now you have two energy business you need to pay each month.
3. Many leases or PPAs carry a yearly cost escalator, generally 2.9 %. So while you may be saving money today in a several years you will not be.
4. You won’t have the ability to claim 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 paid off you can delight in totally free electrical power from the sun for 10– 15 years depending upon 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 new owner to assume the lease and terms. If you read any of the above you can most likely see why an informed consumer would not want presuming the obligations of your lease. This is especially true if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the expense of electrical energy to equivalent or more than the cost of electrical energy from the energy.