Prior to you sign your name to a solar panel lease on your home in San Diego CA 92153 you have to comprehend what you are truly getting into. If you’re in the business of offering solar leases maybe you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first consultation you’ve got virtually no chance of closing it later. Why not alter your approach do what’s right for the customer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92153 or PPA Sales Pitch usually includes 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those monthly payments during the regard to the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Lots of zero cash down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
[ssvideo keyword=”Solar Contractors” title=”Solar Contractors in San Diego”]
2. No concerns. The leasing/PPA business in San Diego CA 92153 is responsible for all repair and maintenance on the system.
The leasing company will certainly not clean your photovoltaic panels which has to do with only maintenance needed on a solar system. Solar systems are very low maintenance with no moving parts and include very long producer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment producers are larger and more solvent than the solar leasing company by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company insures 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 likewise get monitoring for the life of the system, making use of the very same monitoring devices utilized by the leasing business.
5. Just sign an agreement and the renting company does everything else.
When buying a system you likewise simply sign a contract and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease does not strike your personal credit. Does not influence your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is among your main concerns there are financing choices for a purchase (PACE and HERO) that also do not hit your individual credit or impact your financial obligation to income ratio. And those programs permit nearly any property owner to go solar despite their credit score.
Now for the 6 main disadvantages to a solar lease in San Diego CA 92153 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 purchasing solar on your roofing system! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have two utility bills not just one! In essence the renting business ends up being a 2nd utility. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. Many leases or PPAs lug a yearly expense escalator, typically 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 assert the 30 % federal tax credit and any relevant cash refunds. You also won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is paid off you can get totally free electrical power from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”San Diego CA”]
6. Selling your home with a solar lease or PPA can be problematic. Solar leases need the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not want assuming the obligations of your lease. This is especially real 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 cost of electrical energy from the utility.