Prior to you sign your name to a solar panel lease on your home in San Diego CA 92166 you need to understand exactly what you are actually getting into. If you’re in the business of offering solar leases maybe you ought to attempt Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are checking out if they do even a percentage of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of research online before dedicating to a 20 year agreement. Maybe you’ll now understand why you get numerous cancellations and why if you don’t close the deal on the first appointment you’ve got almost no chance 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 industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92166 or PPA Sales Pitch generally consists of 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 in which you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no money down solar loans are readily available. If you have the credit score to get approved for the lease you can utilize the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA business in San Diego CA 92166 is accountable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with only upkeep required on a solar system. Solar systems are incredibly low maintenance with no moving parts and include very long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee 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 just a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping an eye on for the life of the system, making use of the same monitoring equipment used by the leasing business.
5. Just sign an agreement and the leasing company does everything else.
When acquiring a system you likewise simply sign an agreement and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t affect your debt to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high rate. If this is among your primary issues there are funding alternatives for a purchase (PACE and HERO) that likewise do not hit your personal credit or impact your debt to earnings ratio. And those programs permit almost any house owner to go solar no matter their credit rating.
Now for the six main downsides to a solar lease in San Diego CA 92166 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 buying solar on your roofing system! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two utility bills not just one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have two energy business you need to pay monthly.
3. The majority of leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any appropriate cash discounts. You also will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can get free electricity 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 troublesome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an enlightened customer would not have an interest in assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical power to equivalent or more than the cost of electrical energy from the energy.