Before you sign your name to a solar panel lease on your house in Santa Ana CA 92735 you need to understand exactly what you are truly getting into. If you’re in the business of offering solar leases perhaps you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a percentage of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get many cancellations and why if you don’t close the deal on the very first appointment you’ve got practically no possibility of closing it later. Why not change your strategy do exactly what’s right for the client and get on board with a business that supplies market leading value (cost + quality + service).
The Solar Lease in Santa Ana CA 92735 or PPA Sales Pitch generally consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate 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 purchasing the solar system even if you factor in the interest paid on the solar loan. Many absolutely no cash down solar loans are available. If you have the credit report to qualify for the lease you can utilize the bank’s cash to finance your solar system with zero money down.
[ssvideo keyword=”Solar Companies” title=”Solar Contractors in Santa Ana”]
2. No worries. The leasing/PPA company in Santa Ana CA 92735 is responsible for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which is about just maintenance required on a solar system. Solar systems are very low upkeep without any moving parts and include extremely long producer’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing 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. Tracking– 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, using the exact same tracking devices made use of by the leasing business.
5. Just sign an agreement and the leasing business does everything else.
When acquiring a system you also just sign an agreement and the solar contractors does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your individual credit. Does not affect 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 concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t hit your individual credit or influence your financial obligation to income ratio. And those programs allow practically any property owner to go solar regardless of their credit score.
Now for the six main downsides to a solar lease in Santa Ana CA 92735 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are purchasing solar on your roof! You’re just providing them a guaranteed 20 year capital!
2. Now you have 2 utility expenses not simply one! In essence the leasing company ends up being a 2nd energy. So, sign a solar lease and now you have 2 energy business you need to pay each month.
3. Many leases or PPAs carry an annual cost escalator, usually 2.9 %. So while you might be conserving 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 applicable money rebates. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is settled you can take pleasure in free electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”Santa Ana CA”]
6. Selling your house with a solar lease or PPA can be problematic. Solar leases use the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely 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 annual cost escalator in the lease has now raised the expense of electrical energy to equal or more than the expense of electrical power from the utility.