Before you sign your name to a solar panel lease on your home in San Diego CA 92162 you need to comprehend exactly what you are actually getting into. If you’re in the business of selling solar leases maybe you should attempt Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are reading if they do even a percentage of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year agreement. Maybe you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the first appointment you’ve got practically no possibility of closing it later. Why not change your approach 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 92162 or PPA Sales Pitch generally includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is barely paying nothing. If you accumulate all those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Lots of zero cash down solar loans are available. If you have the credit report to qualify for the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No fears. The leasing/PPA business in San Diego CA 92162 is liable for all repair and maintenance on the system.
The leasing business will not clean your photovoltaic panels which is about just maintenance used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and feature extremely long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar devices producers are bigger and more financially stable than the solar leasing business by many multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee 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 house owner’s policy for a just 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, making use of the exact same monitoring equipment used by the renting business.
5. Just sign an agreement and the renting company does everything else.
When buying a system you also just sign a contract and the solar service providers does everything else. Difference is the leasing business 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 impact your financial obligation to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high cost. If this is among your major concerns there are funding choices for a purchase (PACE and HERO) that also do not strike your individual credit or impact your financial obligation to earnings ratio. And those programs permit virtually any house owner to go solar regardless of their credit score.
Now for the six primary downsides to a solar lease in San Diego CA 92162 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are buying solar on your roofing system! You’re just providing them an ensured 20 year capital!
2. Now you have 2 utility expenses not simply one! In essence the renting company ends up being a second utility. So, sign a solar lease and now you have 2 energy companies you have to pay each month.
3. The majority of leases or PPAs carry a yearly expense escalator, typically 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate cash refunds. You likewise will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is paid off you can take pleasure in 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 house with a solar lease or PPA can be bothersome. Solar leases use 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 consumer would not have an interest in presuming the responsibilities of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the expense of electrical energy to equivalent or more than the expense of electrical power from the energy.