Prior to you sign your name to a solar panel lease on your house in San Diego CA 92176 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 try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are checking out if they do even a small amount of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will certainly check out when they do 30 minutes of research online prior to committing to a 20 year agreement. Possibly you’ll now understand why you get many cancellations and why if you don’t seal the deal on the first appointment you’ve got almost no possibility of closing it later. Why not change your method do what’s right for the customer and get on board with a business that provides market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92176 or PPA Sales Pitch normally includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Numerous no cash down solar loans are offered. If you have the credit score to get the lease you can use 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 92176 is liable for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about only upkeep needed on a solar system. Solar systems are very low upkeep without any moving parts and have extremely long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business guarantees the system.
Purchase a system and the solar system is covered under your property owner’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 buy a system you likewise get keeping an eye on for the life of the system, using the exact same monitoring equipment used by the renting company.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you also simply sign a contract and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your individual credit. Does not impact your financial obligation to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high price. If this is among your primary issues there are funding choices for a purchase (PACE and HERO) that likewise don’t strike your individual credit or influence your debt to income ratio. And those programs permit practically any house owner to go solar regardless of their credit score.
Now for the 6 major drawbacks to a solar lease in San Diego CA 92176 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 purchasing solar on your roof! You’re simply supplying them an ensured 20 year capital!
2. Now you have 2 energy costs not just one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. Most leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you may be saving cash today in a numerous years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any applicable cash discounts. You also will not be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can take pleasure in totally 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 house with a solar lease or PPA can be problematic. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not be interested in presuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the expense of electrical energy from the energy.