Before you sign your name to a solar panel lease on your house in Santa Ana CA 92702 you have to comprehend exactly what you are truly getting into. If you’re in business of offering solar leases maybe you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get numerous cancellations and why if you don’t seal the deal on the first visit you’ve got nearly no chance of closing it later. Why not alter your strategy do what’s right for the customer and get on board with a business that supplies market leading value (cost + quality + service).
The Solar Lease in Santa Ana CA 92702 or PPA Sales Pitch normally consists of 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate all of those monthly payments during 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 consider the interest paid on the solar loan. Numerous no cash down solar loans are readily available. If you have the credit report to qualify for the lease you can use the bank’s money to finance your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in Santa Ana CA 92702 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are very low maintenance without any moving parts and feature incredibly long producer’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar devices producers are larger and more financially stable than the solar leasing business by lots of 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 leasing company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, making use of the very same monitoring equipment made use of by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When buying a system you likewise just sign an agreement and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t impact your debt to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high rate. If this is among your main concerns there are financing choices for a purchase (PACE and HERO) that also don’t hit your individual credit or affect your debt to earnings ratio. And those programs permit nearly any property owner to go solar regardless of their credit rating.
Now for the 6 primary downsides to a solar lease in Santa Ana CA 92702 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 buying solar on your roof! You’re just offering them an ensured 20 year cash flow!
2. Now you have two utility costs not simply one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. The majority of leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you may be saving cash today in a numerous years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any applicable cash discounts. You likewise won’t 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. On the other hand, if you buy a solar system once the solar loan is paid off you can take pleasure in complimentary electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be troublesome. Solar leases require the new owner to presume the lease and terms. If you read any of the above you can most likely see why an educated consumer would not want presuming the obligations of your lease. This is particularly real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the cost of electrical power to equal or more than the cost of electrical energy from the utility.