Prior to you sign your name to a solar panel lease on your home in San Diego CA 92169 you need to comprehend what you are really getting into. If you’re in business of offering solar leases maybe you ought to attempt 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 homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will read when they do 30 minutes of study online before dedicating to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you don’t close the deal on the very first appointment you’ve got almost no opportunity of closing it later. Why not alter your technique do what’s right for the customer and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in San Diego CA 92169 or PPA Sales Pitch normally consists of six 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 assure to pay X hundred dollars per month is barely paying nothing. If you add up all of those regular 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 consider the interest paid on the solar loan. Numerous zero cash down solar loans are readily available. If you have the credit history to get 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 92169 is responsible for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which is about only upkeep required on a solar system. Solar systems are extremely low upkeep without any moving parts and have incredibly long maker’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Many tier 1 solar equipment producers are larger and more solvent than the solar leasing company by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– 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 simply a couple dollars per month.
4. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, utilizing the same tracking devices used by the renting company.
5. Simply sign a contract and the renting business does everything else.
When purchasing a system you also just sign an agreement and the solar specialists does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar contractor’s contract is 2 pages.
6. A lease does not hit your individual credit. Doesn’t impact your financial obligation to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high rate. If this is among your primary concerns there are funding choices for a purchase (PACE and HERO) that likewise do not strike your personal credit or affect your debt to earnings ratio. And those programs allow nearly any house owner to go solar despite their credit rating.
Now for the 6 main drawbacks to a solar lease in San Diego CA 92169 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are investing in solar on your roofing! You’re just supplying them a guaranteed 20 year cash flow!
2. Now you have two utility bills not just one! In essence the renting business becomes a second energy. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. A lot of leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you might be saving money today in a several years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any relevant money rebates. You also won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can take pleasure in free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be troublesome. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated customer would not want assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the cost of electrical power to equal or more than the expense of electricity from the energy.