Prior to you sign your name to a solar panel lease on your house in San Diego CA 92150 you have to understand exactly what you are truly getting into. If you’re in business of selling solar leases perhaps you ought to attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are checking out if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will certainly check out when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the first visit you’ve got virtually no chance of closing it later. Why not change your technique do what’s right for the client and get on board with a business that provides industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92150 or PPA Sales Pitch normally includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of zero money down solar loans are offered. If you have the credit score to get the lease you can make use of the bank’s cash to finance your solar system with no cash down.
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2. No fears. The leasing/PPA business in San Diego CA 92150 is liable for all maintenance and repairs on the system.
The renting business will certainly not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are very low maintenance with no moving parts and have very long producer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar equipment producers are bigger and more financially stable than the solar leasing business by many 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 business guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, utilizing the exact same monitoring equipment utilized by the renting company.
5. Just sign an agreement and the leasing business does everything else.
When purchasing a system you also just sign a contract and the solar service providers does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease does not strike your personal credit. Doesn’t influence your debt to income ratio.
This might be the only real benefit of the lease but it comes at an awefully high rate. If this is among your main concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your financial obligation to income ratio. And those programs allow practically any house owner to go solar despite their credit score.
Now for the six major disadvantages to a solar lease in San Diego CA 92150 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 investing in solar on your roof! You’re just offering them a guaranteed 20 year capital!
2. Now you have two energy costs not just one! In essence the renting company ends up being a 2nd utility. So, sign a solar lease and now you have 2 utility companies you have to pay monthly.
3. Many leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be saving money today in a several years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any appropriate cash discounts. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can take pleasure in 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 bothersome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated consumer would not have an interest in assuming the commitments of your lease. This is especially real if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the expense of electricity to equal or more than the expense of electricity from the utility.