Before you sign your name to a solar panel lease on your house in Santa Ana CA 92706 you have to comprehend what you are really getting into. If you’re in the business of selling solar leases possibly you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first appointment you’ve got nearly no opportunity of closing it later. Why not alter your technique do exactly what’s right for the consumer and get on board with a business that offers industry leading value (rate + quality + service).
The Solar Lease in Santa Ana CA 92706 or PPA Sales Pitch normally includes 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 in which you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit report to get approved for the lease you can utilize the bank’s cash to fund your solar system with zero money down.
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2. No fears. The leasing/PPA business in Santa Ana CA 92706 is liable for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which is about only maintenance needed on a solar system. Solar systems are extremely low maintenance with no moving parts and feature exceptionally long manufacturer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar devices makers are larger and more solvent than the solar leasing business by numerous multiples. Those long 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 homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company 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, utilizing the exact same monitoring devices used by the renting company.
5. Simply sign a contract and the renting business does everything else.
When purchasing a system you likewise just sign a contract and the solar contractors does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t affect your debt to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high cost. If this is among your primary concerns there are funding alternatives for a purchase (PACE and HERO) that likewise don’t hit your individual credit or impact your financial obligation to income ratio. And those programs permit practically any house owner to go solar regardless of their credit score.
Now for the six primary downsides to a solar lease in Santa Ana CA 92706 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 investing in solar on your roofing! You’re just offering them a guaranteed 20 year capital!
2. Now you have 2 energy expenses not simply one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have 2 utility business you have to pay each month.
3. Many leases or PPAs carry an annual cost escalator, generally 2.9 %. So while you might be conserving cash today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any applicable cash rebates. You likewise 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 buy a solar system once the solar loan is settled you can delight in complimentary electrical power 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 problematic. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not have an interest 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 now raised the expense of electrical power to equal or more than the expense of electrical power from the utility.