Before you sign your name to a solar panel lease on your house in San Diego CA 92182 you have to comprehend what you are actually getting into. If you’re in business of selling solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are checking out if they do even a percentage of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of study online before committing to a 20 year agreement. Possibly you’ll now understand why you get a lot of cancellations and why if you don’t close the deal on the first consultation you’ve got almost no opportunity of closing it later. Why not change your strategy do exactly what’s right for the client and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92182 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 guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those monthly payments during 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. Numerous absolutely no cash down solar loans are readily available. If you have the credit report to get approved for the lease you can use the bank’s money to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in San Diego CA 92182 is liable for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about just maintenance used on a solar system. Solar systems are very low maintenance without any moving parts and come with exceptionally long maker’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Most tier 1 solar equipment makers are bigger and more solvent than the solar leasing company by many 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 guarantees the system.
Purchase a system and the solar system is covered under your property 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 purchase a system you likewise get keeping track of for the life of the system, using the same monitoring devices utilized by the renting business.
5. Simply sign an agreement and the leasing business does everything else.
When buying a system you also simply sign a contract and the solar contractors does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your debt to earnings ratio.
This may be the only real advantage of the lease but it comes at an awefully high cost. If this is one of your main concerns there are financing options for a purchase (PACE and HERO) that also do not strike your individual credit or impact your financial obligation to earnings ratio. And those programs permit almost any property owner to go solar no matter their credit score.
Now for the six main drawbacks to a solar lease in San Diego CA 92182 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are investing in solar on your roofing system! You’re simply supplying them a guaranteed 20 year capital!
2. Now you have 2 utility costs not simply one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. A lot of leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be saving money today in a several years you will not be.
4. You will not have the ability to assert the 30 % federal tax credit and any relevant money discounts. You likewise won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is settled you can enjoy free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be troublesome. 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 enlightened consumer would not have an interest in presuming the commitments of your lease. This is specifically 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 electricity to equivalent or more than the expense of electrical energy from the utility.