Before you sign your name to a solar panel lease on your house in San Diego CA 92184 you need to comprehend exactly what you are really getting into. If you’re in the business of selling solar leases possibly you must try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are checking out if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will read when they do 30 minutes of research online before dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get many cancellations and why if you don’t seal the deal on the very first appointment you’ve got almost no chance of closing it later on. Why not alter your strategy do what’s right for the customer and get on board with a company that offers market leading value (rate + quality + service).
The Solar Lease in San Diego CA 92184 or PPA Sales Pitch normally consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all those regular 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. Many zero money down solar loans are offered. If you have the credit score to qualify for the lease you can utilize the bank’s cash to finance your solar system with zero money down.
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2. No fears. The leasing/PPA company in San Diego CA 92184 is liable for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which has to do with just maintenance required on a solar system. Solar systems are exceptionally low maintenance without any moving parts and come with exceptionally long manufacturer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business insures 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 renting business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, making use of the same tracking equipment made use of by the leasing business.
5. Just sign a contract and the renting business does everything else.
When acquiring a system you likewise simply sign a contract and the solar service providers does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t influence your financial obligation to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your main issues there are funding options for a purchase (PACE and HERO) that also do not hit your personal credit or influence your debt to earnings ratio. And those programs permit virtually any house owner to go solar despite their credit score.
Now for the six primary downsides to a solar lease in San Diego CA 92184 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re just providing them a guaranteed 20 year capital!
2. Now you have two utility bills not simply one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. Many leases or PPAs carry an annual expense escalator, generally 2.9 %. So while you might be saving money today in a several years you will not be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash refunds. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is settled you can delight in free electrical energy 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 problematic. Solar leases need the new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not have an interest in assuming the obligations 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 energy to equivalent or more than the expense of electricity from the utility.