Before you sign your name to a solar panel lease on your house in San Marcos CA 92079 you have to comprehend what you are actually getting into. If you’re in the business of selling solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are reading if they do even a percentage of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will check out when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the first consultation you’ve got practically no opportunity of closing it later. Why not change your approach do what’s right for the client and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in San Marcos CA 92079 or PPA Sales Pitch generally consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash 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 accumulate all of those month-to-month 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 factor in the interest paid on the solar loan. Many absolutely no cash down solar loans are available. If you have the credit report to qualify for the lease you can utilize the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in San Marcos CA 92079 is accountable for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which has to do with only maintenance needed on a solar system. Solar systems are incredibly low maintenance without any moving parts and have exceptionally long manufacturer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing business by many multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee 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 just a couple dollars per month.
4. Monitoring– the leasing company 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 very same tracking devices made use of by the renting company.
5. Just sign a contract and the leasing company does everything else.
When buying a system you also simply sign an agreement and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Does not influence your financial obligation to earnings ratio.
This might be the only true advantage of the lease however it comes at an awefully high price. If this is one of your primary issues there are funding choices for a purchase (PACE and HERO) that also do not hit your personal credit or influence your debt to earnings ratio. And those programs permit practically any homeowner to go solar despite their credit score.
Now for the 6 main drawbacks to a solar lease in San Marcos CA 92079 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re simply supplying them an ensured 20 year capital!
2. Now you have two utility bills not just one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have two energy business you need to pay each month.
3. Most leases or PPAs carry an annual cost escalator, generally 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You will not have the ability to assert the 30 % federal tax credit and any applicable cash refunds. You also won’t 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 acquire a solar system once the solar loan is paid off you can delight in complimentary electrical power 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 problematic. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not want presuming the commitments of your lease. This is particularly true if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the expense of electrical power to equal or more than the cost of electricity from the energy.