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Selling Your Home With a Solar Lease in Santa Ana CA 92704

Selling Your Home With a Solar Lease in Santa Ana CA 92704

Problems With Solar Lease in Santa AnaBefore you sign your name to a solar panel lease on your house in Santa Ana CA 92704 you have to comprehend exactly what you are really getting into. If you’re in business of selling solar leases maybe you should try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a small amount of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first consultation you’ve got nearly no possibility of closing it later on. Why not alter your method do what’s right for the consumer and get on board with a company that provides market leading value (cost + quality + service).

The Solar Lease in Santa Ana CA 92704 or PPA Sales Pitch normally includes six main points. We talked about each below.

1. Go Solar and Pay Nothing! Or no money out of pocket.

Signing a 20 year contract in which you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those month-to-month payments throughout 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 factor in the interest paid on the solar loan. Many no money down solar loans are readily available. If you have the credit history to get the lease you can make use of the bank’s money to finance your solar system with zero money down.

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2. No worries. The leasing/PPA company in Santa Ana CA 92704 is liable for all repair and maintenance on the system.

The leasing business will certainly not clean your photovoltaic panels which has to do with only maintenance used on a solar system. Solar systems are exceptionally low upkeep with no moving parts and include very long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar equipment producers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long service 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 business 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 acquire a system you likewise get keeping an eye on for the life of the system, utilizing the exact same monitoring devices made use of by the renting business.

5. Simply sign a contract and the leasing company does everything else.

When acquiring a system you likewise simply sign an agreement and the solar specialists does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar professional’s agreement is 2 pages.

6. A lease doesn’t strike your individual credit. Doesn’t impact your financial obligation to earnings ratio.

This may be the only real advantage of the lease however it comes at an awefully high cost. If this is among your main issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t hit your individual credit or affect your debt to income ratio. And those programs allow virtually any house owner to go solar no matter their credit score.

Now for the 6 main drawbacks to a solar lease in Santa Ana CA 92704 or PPA.

1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are purchasing solar on your roofing! You’re simply providing them an ensured 20 year capital!

2. Now you have 2 utility costs not just one! In essence the renting business becomes a 2nd energy. So, sign a solar lease and now you have 2 utility business you need to pay monthly.

3. Many leases or PPAs lug a yearly cost escalator, typically 2.9 %. So while you might be saving money today in a numerous years you will not be.

4. You won’t be able to declare the 30 % federal tax credit and any relevant cash refunds. You also will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).

5. You never ever get to totally 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 get complimentary electrical power 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 need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated customer would not have an interest in assuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the cost of electrical energy from the utility.

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