Before you sign your name to a solar panel lease on your house in Santa Ana CA 92707 you need to understand exactly what you are really getting into. If you’re in the business of selling solar leases perhaps you must 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 likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will read when they do 30 minutes of research online prior to dedicating to a 20 year contract. Possibly you’ll now understand why you get a lot of cancellations and why if you don’t seal the deal on the first consultation you’ve got virtually no chance 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 offers market leading value (cost + quality + service).
The Solar Lease in Santa Ana CA 92707 or PPA Sales Pitch typically includes 6 bottom lines. 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 guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those month-to-month payments throughout the term of the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Lots of zero money down solar loans are offered. If you have the credit report to qualify for the lease you can use the bank’s cash to finance your solar system with zero money down.
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2. No worries. The leasing/PPA business in Santa Ana CA 92707 is liable for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about just upkeep needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and come with exceptionally long manufacturer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. A lot of tier 1 solar devices producers are larger and more financially stable than the solar leasing company by many multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– 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 just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, utilizing the same monitoring equipment utilized by the renting business.
5. Just sign an agreement and the renting company does everything else.
When buying a system you likewise just sign an agreement and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not impact your financial obligation to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your major issues there are financing options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your financial obligation to earnings ratio. And those programs allow almost any homeowner to go solar no matter their credit score.
Now for the 6 major downsides to a solar lease in Santa Ana CA 92707 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are investing in solar on your roof! You’re just supplying them an ensured 20 year capital!
2. Now you have two utility expenses not simply one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have 2 utility companies you need to pay monthly.
3. Most leases or PPAs bring an annual expense escalator, typically 2.9 %. So while you might be conserving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any applicable money discounts. You likewise won’t be able to declare 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 acquire a solar system once the solar loan is paid off you can delight in free 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 troublesome. Solar leases require the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an enlightened customer would not want presuming the responsibilities of your lease. This is especially true if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the cost of electricity to equivalent or more than the cost of electricity from the energy.