Before you sign your name to a solar panel lease on your home in San Diego CA 92187 you need to understand exactly what you are really getting into. If you’re in business of offering solar leases maybe you need to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will read when they do 30 minutes of study online before dedicating to a 20 year contract. Maybe you’ll now comprehend why you get so many cancellations and why if you do not seal the deal on the first visit you’ve got virtually no chance of closing it later on. Why not change your approach do exactly what’s right for the client and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92187 or PPA Sales Pitch usually includes 6 bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all of those monthly payments throughout the regard to the contract 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. Lots of zero cash down solar loans are available. If you have the credit history to get the lease you can utilize the bank’s cash to fund your solar system with no money down.
[ssvideo keyword=”Solar Contractors” title=”Solar Contractors in San Diego”]
2. No fears. The leasing/PPA company in San Diego CA 92187 is responsible for all maintenance and repairs on the system.
The leasing company will not clean your photovoltaic panels which has to do with only upkeep needed on a solar system. Solar systems are exceptionally low maintenance with no moving parts and come with very long maker’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar equipment makers are bigger and more financially stable than the solar leasing company by numerous multiples. Those long guarantees are supported 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 house owner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get monitoring for the life of the system, making use of the same monitoring devices made use of by the leasing company.
5. Simply sign an agreement and the renting company does everything else.
When buying a system you likewise simply sign a contract and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not affect your financial obligation to earnings ratio.
This may be the only true advantage of the lease however it comes at an awefully high price. If this is one of your main issues there are financing alternatives for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to income ratio. And those programs enable nearly any property owner to go solar regardless of their credit score.
Now for the six primary downsides to a solar lease in San Diego CA 92187 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are investing in solar on your roof! You’re simply supplying them a guaranteed 20 year capital!
2. Now you have two utility bills not just one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. A lot of leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any applicable money refunds. You likewise will not have the ability to assert 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 paid off you can get complimentary electricity from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”San Diego CA”]
6. Selling your home 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 most likely see why an informed consumer would not have an interest in presuming the responsibilities of your lease. This is especially real if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the cost of electrical energy to equal or more than the cost of electrical energy from the utility.