Prior to you sign your name to a solar panel lease on your house in Santa Ana CA 92703 you have to understand what you are truly getting into. If you’re in the business of offering solar leases possibly 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 homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will certainly check out when they do 30 minutes of study online before dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get so many cancellations and why if you don’t close the deal on the first visit you’ve got nearly no possibility 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 supplies industry leading value (price + quality + service).
The Solar Lease in Santa Ana CA 92703 or PPA Sales Pitch normally consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those regular monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Numerous 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 fund your solar system with zero money down.
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2. No worries. The leasing/PPA company in Santa Ana CA 92703 is responsible for all repair and maintenance 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 very low maintenance without any moving parts and include incredibly long manufacturer’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Most tier 1 solar devices makers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, using the same tracking devices used by the renting business.
5. Simply sign an agreement and the leasing company does everything else.
When acquiring a system you also just sign a contract and the solar contractors does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not impact your financial obligation to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high cost. If this is one of your main issues there are financing choices for a purchase (PACE and HERO) that also do not strike your personal credit or affect your financial obligation to earnings ratio. And those programs enable virtually any homeowner to go solar despite their credit score.
Now for the 6 primary disadvantages to a solar lease in Santa Ana CA 92703 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are buying solar on your roofing system! You’re just providing them an ensured 20 year cash flow!
2. Now you have 2 utility bills not just one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have two energy business you need to pay monthly.
3. The majority of leases or PPAs lug an annual expense escalator, typically 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate money refunds. You likewise will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is paid off you can delight in complimentary 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 bothersome. Solar leases need the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not have an interest in presuming the responsibilities 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 cost of electricity to equal or more than the expense of electrical energy from the utility.