Before you sign your name to a solar panel lease on your house in San Diego CA 92191 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases maybe you must try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will check out when they do 30 minutes of research online before committing to a 20 year contract. Perhaps you’ll now understand why you get so many cancellations and why if you do not close the deal on the first visit you’ve got virtually no possibility of closing it later. Why not change your method do exactly what’s right for the client and get on board with a business that offers industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92191 or PPA Sales Pitch normally includes six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are available. If you have the credit score to get the lease you can utilize the bank’s money to fund your solar system with absolutely no money down.
[ssvideo keyword=”Solar Companies” title=”Solar Contractors in San Diego”]
2. No worries. The leasing/PPA company in San Diego CA 92191 is liable for all repair and maintenance on the system.
The leasing business will not clean your solar panels which has to do with only upkeep needed on a solar system. Solar systems are very low upkeep without any moving parts and include exceptionally long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing company 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 renting business guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, using the exact same tracking equipment used by the leasing company.
5. Simply sign an agreement and the leasing company does everything else.
When buying a system you likewise just sign an agreement and the solar service providers does everything else. Difference is the leasing business agreement is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your individual credit. Does not affect your financial obligation to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high rate. If this is among your major concerns there are funding alternatives for a purchase (PACE and HERO) that likewise do not hit your individual credit or affect your financial obligation to earnings ratio. And those programs enable virtually any homeowner to go solar regardless of their credit rating.
Now for the 6 main drawbacks to a solar lease in San Diego CA 92191 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 buying solar on your roofing! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have two utility expenses not simply one! In essence the renting company becomes a second utility. So, sign a solar lease and now you have 2 energy companies you need to pay monthly.
3. Most leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you might 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 appropriate money refunds. You also will not be able to assert 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 buy a solar system once the solar loan is paid off you can delight in complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”San Diego CA”]
6. Offering your home with a solar lease or PPA can be troublesome. Solar leases use the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not be interested in assuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly 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.