Prior to you sign your name to a solar panel lease on your house in San Marcos CA 92078 you need to understand exactly what you are truly getting into. If you’re in business of selling solar leases maybe you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a small amount of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the first visit you’ve got practically no chance of closing it later on. Why not change your technique do exactly what’s right for the client and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in San Marcos CA 92078 or PPA Sales Pitch normally includes 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those regular monthly payments during the regard to the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Numerous no money down solar loans are offered. If you have the credit score to get the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA business in San Marcos CA 92078 is accountable for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which has to do with only upkeep used on a solar system. Solar systems are extremely low maintenance with no moving parts and feature exceptionally long maker’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar equipment producers are larger and more solvent than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company 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. Tracking– the renting company 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, using the exact same monitoring equipment utilized by the renting company.
5. Simply sign a contract and the renting business does everything else.
When purchasing a system you also 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 professional’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not impact your debt to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high price. If this is one of your primary issues there are financing choices for a purchase (PACE and HERO) that likewise do not hit your personal credit or impact your financial obligation to income ratio. And those programs enable nearly any homeowner to go solar despite their credit score.
Now for the six main disadvantages to a solar lease in San Marcos CA 92078 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are purchasing solar on your roofing! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility bills not simply one! In essence the leasing company becomes a 2nd utility. So, sign a solar lease and now you have 2 energy business you have to pay each month.
3. The majority of leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you might be saving money today in a several years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant money rebates. You likewise 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. In contrast, if you purchase a solar system once the solar loan is paid off you can get totally free electricity 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 problematic. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an informed consumer would not be interested in presuming the obligations of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the expense of electrical energy to equal or more than the cost of electrical energy from the utility.