Prior to you sign your name to a solar panel lease on your home in San Diego CA 92172 you have to understand exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you ought to attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are reading if they do even a small amount of research. You likewise may 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 study online before committing to a 20 year agreement. Perhaps you’ll now understand why you get many cancellations and why if you don’t seal the deal on the first visit you’ve got nearly no opportunity of closing it later on. Why not change your technique do what’s right for the customer and get on board with a business that supplies industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92172 or PPA Sales Pitch usually consists of 6 main points. We talked about 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 those monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are available. If you have the credit history to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA company in San Diego CA 92172 is liable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which is about only upkeep needed on a solar system. Solar systems are exceptionally low maintenance with no moving parts and come with extremely long maker’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar devices manufacturers are larger and more financially stable than the solar leasing company by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a just a couple dollars per month.
4. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, using the exact same monitoring equipment made use of by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When buying a system you also just sign a contract and the solar service providers does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease does not hit your personal credit. Doesn’t impact your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is among your major concerns there are funding options for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your financial obligation to income ratio. And those programs allow nearly any house owner to go solar regardless of their credit score.
Now for the six main downsides to a solar lease in San Diego CA 92172 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are buying solar on your roofing system! You’re just supplying them a guaranteed 20 year capital!
2. Now you have two energy costs not just one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have two utility companies you need to pay monthly.
3. A lot of leases or PPAs lug an annual expense escalator, normally 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any appropriate money rebates. You also won’t 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 acquire a solar system once the solar loan is settled you can enjoy free electrical power from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases use the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an educated customer would not want presuming the responsibilities 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 now raised the expense of electrical power to equivalent or more than the cost of electrical power from the utility.