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Selling Your Home With a Solar Lease in San Diego CA 92195

Selling Your Home With a Solar Lease in San Diego CA 92195

Problems With Solar Lease in San DiegoBefore you sign your name to a solar panel lease on your house in San Diego CA 92195 you need to understand exactly what you are really getting into. If you’re in business of selling solar leases maybe you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are reading if they do even a percentage of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will certainly read when they do 30 minutes of study online prior to committing to a 20 year contract. Possibly you’ll now comprehend why you get so many cancellations and why if you do not close the deal on the first visit you’ve got practically no possibility of closing it later. Why not change your technique do exactly what’s right for the client and get on board with a business that supplies industry leading value (price + quality + service).

The Solar Lease in San Diego CA 92195 or PPA Sales Pitch usually consists of 6 main points. We discussed each below.

1. Go Solar and Pay Nothing! Or no cash out of pocket.

Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are readily available. If you have the credit report to qualify for the lease you can make use of the bank’s cash to fund your solar system with no money down.

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2. No worries. The leasing/PPA company in San Diego CA 92195 is accountable for all repair and maintenance on the system.

The renting company will certainly not clean your photovoltaic panels which is about just maintenance required on a solar system. Solar systems are extremely low upkeep without any moving parts and feature very long manufacturer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar equipment producers 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 guarantees 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. Monitoring– the leasing business monitors your system for the life of the lease/PPA.

When you acquire a system you also get keeping an eye on for the life of the system, using the same tracking equipment made use of by the leasing company.

5. Just sign an agreement and the leasing company does everything else.

When purchasing a system you likewise just sign an agreement and the solar professionals does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.

6. A lease doesn’t strike your individual credit. Does not affect your debt to earnings ratio.

This might be the only true advantage of the lease however it comes at an awefully high price. If this is among your primary issues there are funding alternatives for a purchase (PACE and HERO) that also do not hit your personal credit or impact your debt to income ratio. And those programs enable nearly any house owner to go solar no matter their credit rating.

Now for the six main drawbacks to a solar lease in San Diego CA 92195 or PPA.

1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re simply providing them an ensured 20 year cash flow!

2. Now you have two utility costs not simply 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 each month.

3. Many leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you might be conserving cash today in a numerous years you will not be.

4. You will not be able to declare the 30 % federal tax credit and any appropriate money rebates. You also will not be able 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 settled you can take pleasure in free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.

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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases need the new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed customer would not have an interest in presuming the commitments of your lease. This is especially true if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electrical energy from the utility.

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