Prior to you sign your name to a solar panel lease on your home in San Marcos CA 92096 you need to understand exactly what you are really getting into. If you’re in the business of selling solar leases possibly you should attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are reading if they do even a percentage of homework. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly read when they do 30 minutes of study online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first visit you’ve got practically no chance of closing it later. Why not change your technique do exactly what’s right for the client and get on board with a company that supplies industry leading value (cost + quality + service).
The Solar Lease in San Marcos CA 92096 or PPA Sales Pitch usually consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those month-to-month payments during the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are offered. If you have the credit score to qualify for the lease you can use the bank’s cash to finance your solar system with zero money down.
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2. No concerns. The leasing/PPA business in San Marcos CA 92096 is accountable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with just maintenance used on a solar system. Solar systems are very low maintenance with no moving parts and include incredibly long maker’s warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar equipment makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company insures the system.
Purchase a system and the solar system is covered under your house owner’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 also get keeping track of for the life of the system, utilizing the exact same tracking devices made use of by the renting business.
5. Simply sign a contract and the leasing business does everything else.
When acquiring a system you likewise just sign an agreement and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your debt to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high cost. If this is among your primary concerns there are financing alternatives for a purchase (PACE and HERO) that likewise do not hit your individual credit or influence your debt to income ratio. And those programs enable almost any homeowner to go solar despite their credit score.
Now for the 6 primary downsides to a solar lease in San Marcos CA 92096 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 investing in solar on your roofing system! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two energy costs not simply one! In essence the renting business becomes a second energy. So, sign a solar lease and now you have two utility companies you have to pay each month.
3. The majority of leases or PPAs bring a yearly expense escalator, normally 2.9 %. So while you may be saving money today in a several years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any suitable money rebates. You also will not have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can get free electrical energy from the sun for 10– 15 years depending upon 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 require the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not be interested in presuming the commitments of your lease. This is specifically real if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the cost of electrical energy from the utility.