Prior to you sign your name to a solar panel lease on your home in San Diego CA 92164 you have to understand what you are truly getting into. If you’re in business of selling solar leases maybe 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 research. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the very first visit you’ve got virtually no possibility of closing it later on. Why not alter your technique do exactly what’s right for the consumer and get on board with a company that supplies industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92164 or PPA Sales Pitch normally includes six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all of those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of no cash down solar loans are available. If you have the credit report to get approved for the lease you can make use of the bank’s money to fund your solar system with no money down.
[ssvideo keyword=”Solar Companies” title=”Solar Companies in San Diego”]
2. No worries. The leasing/PPA business in San Diego CA 92164 is responsible for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which is about only upkeep required on a solar system. Solar systems are exceptionally low maintenance without any moving parts and include very long manufacturer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business guarantees 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 renting company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping track of for the life of the system, utilizing the exact same tracking equipment made use of by the leasing company.
5. Just sign a contract and the renting business does everything else.
When buying a system you likewise just sign a contract and the solar service providers does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t influence your debt to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is one of your major issues there are financing options for a purchase (PACE and HERO) that also don’t hit your individual credit or affect your financial obligation to income ratio. And those programs allow nearly any homeowner to go solar no matter their credit score.
Now for the 6 primary drawbacks to a solar lease in San Diego CA 92164 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility costs not simply one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have 2 utility companies you have to pay each month.
3. The majority of leases or PPAs bring a yearly cost escalator, typically 2.9 %. So while you might be conserving money today in a numerous years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any applicable cash discounts. You likewise won’t be able to assert 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 purchase a solar system once the solar loan is settled you can enjoy free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”San Diego CA”]
6. Offering your house with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can probably see why an educated customer would not want assuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electrical energy from the energy.