Prior to you sign your name to a solar panel lease on your house in San Diego CA 92192 you need to comprehend what you are really getting into. If you’re in business of offering solar leases possibly you need to 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 research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year contract. Possibly you’ll now understand why you get many cancellations and why if you don’t close the deal on the very first appointment you’ve got almost no opportunity of closing it later. Why not change your approach do exactly what’s right for the customer and get on board with a company that supplies market leading value (price + quality + service).
The Solar Lease in San Diego CA 92192 or PPA Sales Pitch generally consists of six bottom lines. We went over 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 nothing. If you accumulate all of those regular monthly payments during the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many zero cash down solar loans are readily available. If you have the credit history to get approved for the lease you can utilize the bank’s cash to finance your solar system with no cash down.
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2. No concerns. The leasing/PPA business in San Diego CA 92192 is liable for all repair and maintenance on the system.
The renting business will not clean your solar panels which has to do with only upkeep required on a solar system. Solar systems are extremely low maintenance without any moving parts and come with extremely long maker’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. The majority of tier 1 solar equipment producers are bigger and more financially stable than the solar leasing business by many multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee 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 homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing company 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, using the same tracking equipment utilized by the leasing business.
5. Just sign an agreement and the renting business does everything else.
When acquiring a system you also just sign a contract and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t impact your financial obligation to earnings ratio.
This may be the only true advantage of the lease however it comes at an awefully high cost. If this is one of your major issues there are funding options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your debt to income ratio. And those programs enable practically any property owner to go solar despite their credit score.
Now for the 6 primary drawbacks to a solar lease in San Diego CA 92192 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are investing in solar on your roofing system! You’re simply providing them an ensured 20 year cash flow!
2. Now you have two energy costs not just one! In essence the leasing company ends up being a second energy. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. Many leases or PPAs bring a yearly cost escalator, normally 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any suitable money refunds. You also will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never 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 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 home with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed 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 old and the yearly expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the cost of electricity from the energy.