Prior to you sign your name to a solar panel lease on your house in San Diego CA 92163 you have to understand what you are truly getting into. If you’re in the business of selling solar leases maybe you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are checking out if they do even a small amount of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get many cancellations and why if you don’t seal the deal on the first visit you’ve got almost no possibility of closing it later on. Why not change your technique do what’s right for the client and get on board with a business that supplies market leading value (price + quality + service).
The Solar Lease in San Diego CA 92163 or PPA Sales Pitch typically includes 6 bottom lines. We discussed 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 nothing. If you build up all those monthly payments throughout the regard to the contract 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. Many zero cash down solar loans are offered. If you have the credit report to get the lease you can use the bank’s cash to finance your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in San Diego CA 92163 is responsible for all maintenance and repairs on the system.
The leasing company will not clean your photovoltaic panels which has to do with only upkeep used on a solar system. Solar systems are very low maintenance with no moving parts and come with extremely long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar devices makers are larger and more solvent than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company 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. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, using the exact same tracking devices used by the renting business.
5. Simply sign a contract and the renting company does everything else.
When buying a system you also simply sign a contract and the solar service providers does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t influence your debt to income ratio.
This might be the only real advantage of the lease however it comes at an awefully high price. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that also do not hit your individual credit or influence your debt to income ratio. And those programs enable almost any house owner to go solar despite their credit rating.
Now for the six primary disadvantages to a solar lease in San Diego CA 92163 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are investing in solar on your roofing! You’re simply offering them a guaranteed 20 year capital!
2. Now you have 2 energy expenses not simply one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. Most leases or PPAs bring a yearly cost escalator, normally 2.9 %. So while you might be conserving cash today in a several years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any appropriate cash refunds. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can get totally free electrical power 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 problematic. Solar leases need the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an educated consumer would not have an interest in presuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.