Prior to you sign your name to a solar panel lease on your home in San Diego CA 92171 you need to understand exactly what you are truly getting into. If you’re in the business of selling solar leases possibly you need to try Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are reading if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year contract. Maybe you’ll now understand why you get many cancellations and why if you do not seal the deal on the very first visit you’ve got practically no chance of closing it later. Why not alter your strategy do exactly what’s right for the customer and get on board with a company that provides market leading value (price + quality + service).
The Solar Lease in San Diego CA 92171 or PPA Sales Pitch normally consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is barely paying 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 purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of absolutely no money down solar loans are available. If you have the credit report to get the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
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2. No concerns. The leasing/PPA business in San Diego CA 92171 is liable for all maintenance and repairs on the system.
The renting business will certainly not clean your solar panels which has to do with only upkeep used on a solar system. Solar systems are very low upkeep with no moving parts and come with very long maker’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar devices producers are larger and more financially stable than the solar leasing company by many multiples. Those long warranties are backed up by a 20 year bumper to bumper service 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 homeowner’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 an eye on for the life of the system, making use of the same tracking equipment used by the renting business.
5. Simply sign a contract and the leasing company does everything else.
When purchasing a system you also simply sign an agreement and the solar service providers does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t impact your debt to earnings ratio.
This might be the only true advantage of the lease but it comes at an awefully high rate. If this is among your main issues there are funding options for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your financial obligation to income ratio. And those programs enable practically any house owner to go solar no matter their credit score.
Now for the 6 major drawbacks to a solar lease in San Diego CA 92171 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 simply supplying them a guaranteed 20 year cash flow!
2. Now you have two energy expenses not simply one! In essence the renting company ends up being a 2nd utility. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. The majority of leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you might be saving cash today in a several years you will not be.
4. You won’t have the ability to assert the 30 % federal tax credit and any applicable money refunds. You likewise will not 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. In contrast, if you purchase a solar system once the solar loan is settled you can take pleasure in complimentary electrical energy from the sun for 10– 15 years depending upon 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 require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not be interested in presuming the obligations of your lease. This is especially real if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the cost of electrical power to equivalent or more than the cost of electricity from the energy.