Before you sign your name to a solar panel lease on your home in San Diego CA 92160 you have to comprehend exactly what you are really getting into. If you’re in the business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are checking out if they do even a small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’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 numerous cancellations and why if you do not seal the deal on the very first appointment you’ve got practically no opportunity of closing it later on. Why not alter your technique do exactly what’s right for the client and get on board with a business that supplies market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92160 or PPA Sales Pitch usually includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those monthly 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 no cash down solar loans are offered. If you have the credit report to get the lease you can make use of the bank’s money to fund your solar system with absolutely no money down.
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2. No worries. The leasing/PPA business in San Diego CA 92160 is accountable for all repair and maintenance on the system.
The leasing business will not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are exceptionally low upkeep with no moving parts and come with extremely long producer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. The majority of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by numerous multiples. Those long service warranties are supported 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 homeowner’s policy for a simply a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping track of for the life of the system, utilizing the same monitoring equipment utilized by the leasing business.
5. Just sign a contract and the renting company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t affect your financial obligation to income ratio.
This might be the only real benefit of the lease however it comes at an awefully high cost. If this is one of your major issues there are financing alternatives for a purchase (PACE and HERO) that likewise don’t strike your personal credit or impact your debt to earnings ratio. And those programs permit nearly any homeowner to go solar despite their credit rating.
Now for the 6 main disadvantages to a solar lease in San Diego CA 92160 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! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy bills not just one! In essence the leasing business becomes a 2nd energy. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. Most leases or PPAs lug an annual expense escalator, normally 2.9 %. So while you may be conserving money today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any relevant cash discounts. You likewise will not 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. In contrast, if you acquire a solar system once the solar loan is settled you can take pleasure in totally free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not be interested in presuming the commitments of your lease. This is especially true if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.