Before you sign your name to a solar panel lease on your house in Santa Ana CA 92705 you need to comprehend what you are actually getting into. If you’re in business of offering solar leases perhaps you should try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly check out when they do 30 minutes of study online before committing to a 20 year contract. Maybe you’ll now comprehend why you get so many cancellations and why if you do not close the deal on the very first appointment you’ve got virtually no opportunity of closing it later on. Why not change your method do what’s right for the consumer and get on board with a company that offers market leading value (cost + quality + service).
The Solar Lease in Santa Ana CA 92705 or PPA Sales Pitch normally includes six main points. We discussed 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 absolutely nothing. If you accumulate all those regular monthly 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 consider the interest paid on the solar loan. Lots of no money down solar loans are offered. If you have the credit report to get the lease you can use the bank’s cash to finance your solar system with absolutely no money down.
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2. No fears. The leasing/PPA business in Santa Ana CA 92705 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about only maintenance required on a solar system. Solar systems are extremely low upkeep without any moving parts and come with very long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing company by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get monitoring for the life of the system, making use of the very same tracking equipment utilized by the leasing company.
5. Just sign an agreement and the leasing business does everything else.
When buying a system you also simply sign an agreement and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your debt to income ratio.
This may be the only true benefit of the lease but it comes at an awefully high rate. If this is one of your major issues there are funding choices for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your financial obligation to income ratio. And those programs enable virtually any homeowner to go solar regardless of their credit score.
Now for the 6 major drawbacks to a solar lease in Santa Ana CA 92705 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 purchasing solar on your roofing system! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 energy costs not simply one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. Most leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you might be conserving money today in a several years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any relevant cash discounts. You likewise will not be able to claim 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 buy a solar system once the solar loan is settled you can get complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases use the brand-new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated consumer would not have an interest in assuming the obligations of your lease. This is specifically real if the lease is 7 or more years old and the yearly cost escalator in the lease has actually now raised the cost of electrical energy to equal or more than the cost of electrical energy from the energy.