Before you sign your name to a solar panel lease on your home in San Diego CA 92167 you need to understand exactly what you are really getting into. If you’re in business of selling solar leases possibly you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will check out when they do 30 minutes of research online before committing to a 20 year contract. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first visit you’ve got almost no opportunity of closing it later. Why not alter your approach do exactly what’s right for the customer and get on board with a company that provides industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92167 or PPA Sales Pitch usually consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash 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 accumulate all of those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Many absolutely no cash down solar loans are readily available. If you have the credit history to qualify for the lease you can utilize the bank’s money to fund your solar system with zero money down.
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2. No fears. The leasing/PPA company in San Diego CA 92167 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which has to do with only upkeep used on a solar system. Solar systems are incredibly low maintenance with no moving parts and have incredibly long maker’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices manufacturers are larger and more solvent than the solar leasing company by lots of multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company insures 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. Tracking– the leasing 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 very same tracking equipment made use of by the renting business.
5. Simply sign an agreement and the leasing company does everything else.
When acquiring a system you also just sign an agreement and the solar specialists does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t affect your debt to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high rate. If this is one of your major concerns there are financing alternatives for a purchase (PACE and HERO) that also do not hit your personal credit or impact your debt to income ratio. And those programs enable virtually any property owner to go solar despite their credit score.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92167 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roof! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility costs not just one! In essence the renting company becomes a 2nd utility. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. Most leases or PPAs lug an annual cost escalator, normally 2.9 %. So while you may be saving cash 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 discounts. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is paid off you can get complimentary 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 need the new owner to assume the lease and terms. If you read any of the above you can probably 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 actually now raised the expense of electricity to equal or more than the expense of electrical power from the energy.