Prior to you sign your name to a solar panel lease on your house in San Diego CA 92140 you need to understand exactly what you are actually getting into. If you’re in the business of offering solar leases maybe you should try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’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. purchase”. Read exactly what your client’s will certainly read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you do not seal the deal on the very first consultation you’ve got nearly no opportunity of closing it later. Why not alter your strategy do what’s right for the client and get on board with a business that provides market leading value (price + quality + service).
The Solar Lease in San Diego CA 92140 or PPA Sales Pitch generally includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those monthly payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no money down solar loans are available. If you have the credit history to get the lease you can make use of the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92140 is liable for all maintenance and repairs on the system.
The leasing company will not clean your photovoltaic panels which has to do with just maintenance required on a solar system. Solar systems are exceptionally low upkeep without any moving parts and include exceptionally long producer’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar equipment producers are larger and more financially stable than the solar leasing business by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– 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 simply a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you also get monitoring for the life of the system, making use of the exact same tracking devices utilized by the leasing company.
5. Just sign a contract and the renting business does everything else.
When buying a system you likewise just sign a contract and the solar service providers does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your personal credit. Does not affect your debt to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high price. If this is among your primary issues there are funding choices for a purchase (PACE and HERO) that also do not strike your personal credit or affect your financial obligation to earnings ratio. And those programs enable almost any property owner to go solar despite their credit score.
Now for the 6 primary drawbacks to a solar lease in San Diego CA 92140 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are buying solar on your roofing system! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. Most leases or PPAs bring an annual expense escalator, generally 2.9 %. So while you may be conserving money today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any appropriate money rebates. You also won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can enjoy totally free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not want assuming the commitments of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electrical energy from the utility.