Before you sign your name to a solar panel lease on your home in San Diego CA 92149 you have to understand exactly what you are actually getting into. If you’re in the business of offering solar leases possibly you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a small amount of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will read when they do 30 minutes of study online prior to dedicating to a 20 year contract. Maybe you’ll now understand why you get numerous cancellations and why if you don’t seal the deal on the first appointment you’ve got almost no possibility of closing it later on. Why not alter your approach do exactly what’s right for the client and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in San Diego CA 92149 or PPA Sales Pitch typically includes six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those regular monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly 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 readily available. If you have the credit report to get approved for the lease you can make use of the bank’s money to fund your solar system with no cash down.
[ssvideo keyword=”Solar Companies” title=”Solar Contractors in San Diego”]
2. No worries. The leasing/PPA company in San Diego CA 92149 is liable for all maintenance and repairs on the system.
The renting business will certainly not clean your solar panels which is about only upkeep needed on a solar system. Solar systems are incredibly low upkeep without any moving parts and feature exceptionally long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Most tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Tracking– the leasing company 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, using the same tracking devices made use of by the leasing company.
5. Just sign a contract and the renting company does everything else.
When buying a system you likewise simply sign an agreement and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your personal credit. Doesn’t influence your financial obligation to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high rate. If this is one of your primary concerns there are financing options for a purchase (PACE and HERO) that likewise do not hit your personal credit or influence your financial obligation to income ratio. And those programs permit nearly any house owner to go solar regardless of their credit rating.
Now for the six major drawbacks to a solar lease in San Diego CA 92149 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are investing in solar on your roof! You’re simply supplying them a guaranteed 20 year capital!
2. Now you have two energy costs not simply one! In essence the renting business ends up being a 2nd utility. So, sign a solar lease and now you have two utility companies you need to pay each month.
3. Many leases or PPAs lug an annual cost escalator, usually 2.9 %. So while you might be saving 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 relevant cash discounts. You also won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is paid off you can take pleasure in totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”San Diego CA”]
6. Selling your home with a solar lease or PPA can be troublesome. Solar leases require the 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 be interested in assuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the cost of electrical power to equal or more than the expense of electrical energy from the utility.