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Selling Your Home With a Solar Lease in San Diego CA 92196

Selling Your Home With a Solar Lease in San Diego CA 92196

Problems With Solar Lease in San DiegoBefore you sign your name to a solar panel lease on your home in San Diego CA 92196 you need to understand what you are actually getting into. If you’re in business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You also might try 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 dedicating to a 20 year contract. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first consultation you’ve got nearly no chance of closing it later. Why not alter your strategy do exactly what’s right for the customer and get on board with a company that provides industry leading value (rate + quality + service).

The Solar Lease in San Diego CA 92196 or PPA Sales Pitch normally consists of 6 bottom lines. We discussed each below.

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

Signing a 20 year agreement in which you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Many absolutely no money down solar loans are available. If you have the credit score to qualify for the lease you can utilize the bank’s money to finance your solar system with no cash down.

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2. No worries. The leasing/PPA company in San Diego CA 92196 is responsible for all maintenance and repairs on the system.

The leasing company will not clean your photovoltaic panels which has to do with just maintenance required on a solar system. Solar systems are incredibly low upkeep with no moving parts and include exceptionally long manufacturer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices producers are bigger 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 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 homeowner’s policy for a simply a couple dollars per month.

4. Monitoring– the renting 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 exact same monitoring equipment made use of by the renting company.

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

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

6. A lease doesn’t strike your personal credit. Doesn’t impact your financial obligation to earnings ratio.

This may be the only real advantage of the lease however it comes at an awefully high price. If this is among your main concerns there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or influence your financial obligation to income ratio. And those programs allow virtually any homeowner to go solar despite their credit rating.

Now for the 6 major disadvantages to a solar lease in San Diego CA 92196 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 roofing system! You’re simply providing them an ensured 20 year cash flow!

2. Now you have 2 utility costs not just one! In essence the leasing business ends up being 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 bring a yearly expense escalator, generally 2.9 %. So while you might be saving cash today in a numerous years you won’t be.

4. You will not be able to declare the 30 % federal tax credit and any appropriate cash rebates. 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. On the other hand, if you purchase 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 home with a solar lease or PPA can be troublesome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an informed consumer would not be interested in presuming the responsibilities 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 cost of electrical energy to equivalent or more than the expense of electrical power from the energy.

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