Before you sign your name to a solar panel lease on your house in San Luis Rey CA 92068 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases maybe you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. 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 a lot of cancellations and why if you do not seal the deal on the first consultation you’ve got almost no opportunity of closing it later on. Why not change your method do what’s right for the customer and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in San Luis Rey CA 92068 or PPA Sales Pitch normally consists of 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is barely paying nothing. If you build up all of those regular monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are readily available. If you have the credit report to get approved for the lease you can utilize the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA business in San Luis Rey CA 92068 is accountable for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which has to do with only upkeep required on a solar system. Solar systems are incredibly low maintenance without any moving parts and feature extremely long maker’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar devices producers are larger and more financially stable than the solar leasing company by numerous multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping an eye on for the life of the system, utilizing the exact same tracking equipment made use of by the renting company.
5. Simply sign an agreement and the leasing company does everything else.
When purchasing a system you likewise simply sign a contract and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your debt to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high price. If this is one of your primary concerns there are financing options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or impact your debt to income ratio. And those programs permit nearly any homeowner to go solar no matter their credit rating.
Now for the six major downsides to a solar lease in San Luis Rey CA 92068 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 purchasing solar on your roofing! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 utility bills not just one! In essence the renting business becomes a second energy. So, sign a solar lease and now you have 2 utility business you have to pay monthly.
3. The majority of leases or PPAs carry a yearly cost escalator, generally 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any relevant money 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 take pleasure in complimentary electrical power 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 bothersome. Solar leases need the new owner to assume the lease and terms. If you read any of the above you can most likely see why an informed customer would not be interested in assuming the commitments of your lease. This is specifically real if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the expense of electrical energy to equivalent or more than the cost of electricity from the energy.