Before you sign your name to a solar panel lease on your house in Santa Ana CA 92799 you have to comprehend what you are truly getting into. If you’re in the business of selling solar leases maybe you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will certainly check out when they do 30 minutes of research online before dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get so many cancellations and why if you don’t seal the deal on the very first visit you’ve got virtually no opportunity of closing it later. Why not change your approach do exactly what’s right for the client and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in Santa Ana CA 92799 or PPA Sales Pitch typically consists of six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all those month-to-month payments during the regard to 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. Many zero money down solar loans are offered. If you have the credit history to get approved for the lease you can make use of the bank’s money to fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in Santa Ana CA 92799 is liable for all repair and maintenance on the system.
The leasing business will not clean your photovoltaic panels which is about just maintenance needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and feature exceptionally long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices producers are larger and more financially stable than the solar leasing company by numerous multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee 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 likewise get keeping track of for the life of the system, using the very same monitoring devices utilized by the leasing business.
5. Just sign a contract and the renting company does everything else.
When acquiring a system you likewise just sign a contract and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your personal credit. Doesn’t impact your debt to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is one of your major concerns there are financing choices for a purchase (PACE and HERO) that likewise do not strike your personal credit or impact your financial obligation to income ratio. And those programs allow nearly any property owner to go solar no matter their credit score.
Now for the 6 primary disadvantages to a solar lease in Santa Ana CA 92799 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 investing in solar on your roofing! You’re just offering them a guaranteed 20 year capital!
2. Now you have two energy expenses not just one! In essence the leasing company becomes a 2nd utility. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. Most leases or PPAs carry an annual expense escalator, usually 2.9 %. So while you may be saving money today in a several years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any appropriate cash discounts. You also will not be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can take pleasure in totally free electrical energy from the sun for 10– 15 years depending upon 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 require the new owner to presume the lease and terms. If you read any of the above you can probably see why an enlightened consumer would not have an interest in assuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the cost of electrical energy to equivalent or more than the cost of electrical power from the utility.