Prior to you sign your name to a solar panel lease on your house in San Diego CA 92152 you need to comprehend what you are truly getting into. If you’re in business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a small amount of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will read 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 seal the deal on the very first appointment you’ve got virtually no opportunity of closing it later. Why not change your approach do exactly what’s right for the client and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92152 or PPA Sales Pitch typically includes 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those regular monthly payments throughout the term of the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of no money down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s cash to fund your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92152 is accountable for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which has to do with only maintenance used on a solar system. Solar systems are incredibly low upkeep with no moving parts and include very long manufacturer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Most tier 1 solar equipment makers are larger and more solvent than the solar leasing company by lots of multiples. Those long guarantees are supported 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 renting business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping an eye on for the life of the system, making use of the same tracking equipment utilized by the renting business.
5. Just sign a contract and the leasing company does everything else.
When buying a system you also simply sign an agreement and the solar specialists does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your debt to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high cost. If this is among your main concerns there are financing alternatives for a purchase (PACE and HERO) that also do not strike your personal credit or impact your financial obligation to income ratio. And those programs allow almost any homeowner to go solar regardless of their credit rating.
Now for the six major downsides to a solar lease in San Diego CA 92152 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are buying solar on your roof! You’re just offering them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the leasing business ends up being a 2nd utility. So, sign a solar lease and now you have 2 utility business you have to pay monthly.
3. Most leases or PPAs lug an annual expense escalator, usually 2.9 %. So while you may be saving cash today in a numerous years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any applicable cash rebates. You likewise will not be able 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. On the other hand, if you purchase a solar system once the solar loan is settled you can get totally 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 problematic. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated consumer would not want presuming the responsibilities of your lease. This is particularly true if the lease is 7 or more years old and the annual expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the expense of electrical energy from the utility.