Before you sign your name to a solar panel lease on your house in San Diego CA 92142 you have to comprehend 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 client’s are checking out if they do even a small amount of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will certainly check out when they do 30 minutes of research online before committing to a 20 year contract. Perhaps you’ll now comprehend why you get so many cancellations and why if you do not close the deal on the first visit you’ve got virtually no opportunity of closing it later. Why not change your strategy do what’s right for the client and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in San Diego CA 92142 or PPA Sales Pitch usually includes six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you promise 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 agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many no cash down solar loans are available. If you have the credit report to get the lease you can use the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA business in San Diego CA 92142 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which is about just maintenance needed on a solar system. Solar systems are very low maintenance with no moving parts and include incredibly long maker’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. The majority of tier 1 solar equipment producers are bigger 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 warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company 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 business 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 same tracking devices utilized by the renting company.
5. Simply sign an agreement and the leasing business does everything else.
When acquiring a system you likewise simply sign a contract and the solar specialists does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only true advantage of the lease however it comes at an awefully high cost. If this is among your main issues there are financing alternatives for a purchase (PACE and HERO) that also do not hit your individual credit or impact your financial obligation to earnings ratio. And those programs allow almost any house owner to go solar no matter their credit rating.
Now for the 6 main downsides to a solar lease in San Diego CA 92142 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 purchasing solar on your roof! You’re just supplying them a guaranteed 20 year cash flow!
2. Now you have two utility costs not simply one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have 2 utility business you have to pay monthly.
3. Many leases or PPAs carry a yearly expense escalator, generally 2.9 %. So while you might be conserving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash rebates. You likewise won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can get free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened customer would not have an interest in assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the cost of electrical energy to equal or more than the cost of electrical power from the energy.