Prior to you sign your name to a solar panel lease on your house in San Diego CA 92188 you need to comprehend what you are truly getting into. If you’re in the business of offering solar leases perhaps you must try Googling this, “benefits of solar lease” Read all of the page one results and see 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. purchase”. Read exactly what your customer’s will certainly read when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no opportunity of closing it later. Why not change your technique do exactly what’s right for the customer and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92188 or PPA Sales Pitch usually consists of six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all those monthly payments throughout the term of the contract 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 absolutely no cash down solar loans are available. If you have the credit history to get approved for the lease you can utilize the bank’s cash to fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in San Diego CA 92188 is accountable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic 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 manufacturer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. The majority of tier 1 solar equipment producers are larger and more solvent than the solar leasing company by numerous multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures the system.
Purchase a system and the solar system is covered under your homeowner’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 purchase a system you likewise get keeping track of for the life of the system, making use of the same monitoring equipment made use of by the renting business.
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 professionals does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not hit your personal credit. Does not impact your financial obligation to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high price. If this is among your major issues there are financing options for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your financial obligation to income ratio. And those programs permit practically any house owner to go solar no matter their credit score.
Now for the 6 major downsides to a solar lease in San Diego CA 92188 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 investing in solar on your roofing! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility bills not just one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. A lot of leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any suitable money discounts. You likewise will not have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can get complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be troublesome. Solar leases need the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened consumer would not have an interest in presuming the responsibilities of your lease. This is particularly true 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 equal or more than the cost of electrical energy from the utility.