Prior to you sign your name to a solar panel lease on your home in San Diego CA 92159 you have to understand what you are really getting into. If you’re in business of offering solar leases possibly you should attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get many cancellations and why if you do not close the deal on the first consultation you’ve got virtually no chance of closing it later on. Why not alter your technique do what’s right for the client and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92159 or PPA Sales Pitch usually includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all of those month-to-month payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of absolutely no money down solar loans are offered. If you have the credit report to qualify for the lease you can utilize the bank’s money to finance your solar system with absolutely no money down.
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2. No fears. The leasing/PPA company in San Diego CA 92159 is accountable for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and include exceptionally long producer’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. The majority of tier 1 solar devices makers are bigger and more solvent than the solar leasing business by numerous multiples. Those long warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– 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, using the very same tracking devices used by the renting business.
5. Simply sign an agreement and the renting company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease does not strike your individual credit. Does not impact your financial obligation to income ratio.
This might be the only real benefit of the lease but it comes at an awefully high price. If this is one of your primary concerns there are financing options for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your financial obligation to income ratio. And those programs enable nearly any homeowner to go solar regardless of their credit score.
Now for the 6 main drawbacks to a solar lease in San Diego CA 92159 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are buying solar on your roofing system! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy expenses not just one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have two energy business you need to pay monthly.
3. A lot of leases or PPAs bring a yearly expense escalator, usually 2.9 %. So while you might be conserving money today in a numerous years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any appropriate cash discounts. You also will not be able to claim 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 settled you can delight in totally free electricity 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 troublesome. Solar leases use the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed customer would not want presuming the responsibilities of your lease. This is specifically real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the cost of electrical power to equal or more than the expense of electrical power from the energy.