Prior to you sign your name to a solar panel lease on your home in San Diego CA 92199 you have to understand what you are actually getting into. If you’re in business of offering solar leases perhaps you should attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are reading if they do even a percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly read when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now understand why you get many cancellations and why if you don’t seal the deal on the first visit you’ve got practically no possibility of closing it later on. Why not change your technique do what’s right for the consumer and get on board with a business that provides industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92199 or PPA Sales Pitch generally consists of six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate all 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. Numerous no cash down solar loans are offered. 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 zero cash down.
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2. No fears. The leasing/PPA company in San Diego CA 92199 is accountable for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which is about only upkeep required on a solar system. Solar systems are incredibly low upkeep without any moving parts and feature extremely long manufacturer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar equipment manufacturers are larger and more solvent than the solar leasing business by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping an eye on for the life of the system, using the same tracking devices made use of by the renting company.
5. Simply sign a contract and the leasing company does everything else.
When acquiring a system you likewise simply sign an agreement and the solar service providers does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high price. If this is one of your main concerns there are financing choices for a purchase (PACE and HERO) that also do not hit your individual credit or affect your debt to income ratio. And those programs allow nearly any homeowner to go solar despite their credit score.
Now for the 6 main downsides to a solar lease in San Diego CA 92199 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re just offering them an ensured 20 year cash flow!
2. Now you have two utility expenses not just one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. The majority of leases or PPAs carry an annual cost escalator, usually 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You will not have the ability to declare the 30 % federal tax credit and any suitable cash rebates. You also will not have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can get free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling 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 read any of the above you can probably see why an informed customer would not be interested in presuming the obligations of your lease. This is especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electrical energy to equal or more than the cost of electrical energy from the energy.