Before you sign your name to a solar panel lease on your home in Santa Ana CA 92725 you need to comprehend exactly what you are really getting into. If you’re in the business of offering solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get so many cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no possibility of closing it later on. Why not change your method do exactly what’s right for the client and get on board with a company that supplies industry leading value (price + quality + service).
The Solar Lease in Santa Ana CA 92725 or PPA Sales Pitch usually consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those month-to-month 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 factor in the interest paid on the solar loan. Many zero money down solar loans are readily available. If you have the credit history to get the lease you can utilize the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in Santa Ana CA 92725 is accountable for all repair and maintenance on the system.
The renting business will certainly not clean your solar panels which is about just maintenance needed on a solar system. Solar systems are extremely low upkeep with no moving parts and include very long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper service 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 property owner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing company 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, using the very same monitoring equipment made use of by the leasing business.
5. Simply sign a contract and the renting company does everything else.
When buying a system you likewise just sign an agreement and the solar service providers does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t impact your financial obligation to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high rate. If this is one of your primary concerns there are funding options for a purchase (PACE and HERO) that likewise do not strike your individual credit or affect your financial obligation to earnings ratio. And those programs permit practically any homeowner to go solar no matter their credit rating.
Now for the 6 primary drawbacks to a solar lease in Santa Ana CA 92725 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roof! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have 2 energy business you need to pay monthly.
3. Many leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you might be conserving money today in a numerous years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any relevant cash rebates. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can get totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases use the new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed consumer would not be interested in presuming the commitments of your lease. This is specifically real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the cost of electrical energy to equivalent or more than the cost of electrical power from the energy.