Prior to you sign your name to a solar panel lease on your house in San Diego CA 92198 you have to understand exactly 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 small amount of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t close the deal on the first consultation you’ve got practically no chance of closing it later on. Why not change your method do exactly what’s right for the client and get on board with a company that provides market leading value (price + quality + service).
The Solar Lease in San Diego CA 92198 or PPA Sales Pitch generally consists of 6 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 guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all of those month-to-month payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no cash down solar loans are readily available. If you have the credit score to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in San Diego CA 92198 is accountable for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just upkeep used on a solar system. Solar systems are exceptionally low maintenance with no moving parts and include incredibly long producer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Most tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your property owner’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 purchase a system you also get keeping track of for the life of the system, using the same monitoring devices utilized by the leasing company.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you likewise simply sign an agreement and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not impact your debt to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is among your main concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t hit your individual credit or affect your debt to earnings ratio. And those programs allow nearly any property owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92198 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 purchasing solar on your roof! You’re simply offering them an ensured 20 year capital!
2. Now you have two energy costs not just one! In essence the renting business ends up being a second utility. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. The majority of leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate cash discounts. 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 complimentary power with a lease or PPA. On the other hand, if you acquire 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.
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6. Selling your house with a solar lease or PPA can be problematic. Solar leases need the 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 have an interest in presuming the commitments of your lease. This is especially true if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the cost of electricity from the utility.