Before you sign your name to a solar panel lease on your house in Seal Beach CA 90740 you have to understand exactly what you are really getting into. If you’re in business of selling solar leases possibly you should attempt Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a percentage of homework. You likewise may 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 study online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you don’t close the deal on the very first appointment you’ve got almost no opportunity of closing it later on. Why not change your strategy do exactly what’s right for the consumer and get on board with a business that provides industry leading value (cost + quality + service).
The Solar Lease in Seal Beach CA 90740 or PPA Sales Pitch usually includes six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all those regular monthly payments during the regard to the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of no cash down solar loans are available. If you have the credit history to qualify for the lease you can utilize the bank’s money to finance your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in Seal Beach CA 90740 is accountable for all maintenance and repairs on the system.
The renting business will certainly not clean your solar panels which has to do with only maintenance needed on a solar system. Solar systems are extremely low maintenance with no moving parts and have very long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Many tier 1 solar devices producers are larger and more solvent than the solar leasing company by numerous multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee 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 house owner’s policy for a just a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, utilizing the exact same tracking devices used by the renting company.
5. Just sign an agreement and the renting business does everything else.
When acquiring a system you likewise just sign a contract and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your debt to earnings ratio.
This might be the only real advantage of the lease but it comes at an awefully high cost. If this is among your primary concerns there are funding options for a purchase (PACE and HERO) that also don’t strike your personal credit or influence your financial obligation to income ratio. And those programs permit virtually any house owner to go solar despite their credit rating.
Now for the six main disadvantages to a solar lease in Seal Beach CA 90740 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roofing! You’re just providing them an ensured 20 year capital!
2. Now you have two utility bills not simply one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have 2 energy business you have to pay monthly.
3. A lot of leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any appropriate cash rebates. You likewise won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can enjoy complimentary electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be troublesome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated customer would not want assuming the responsibilities 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 expense of electricity to equivalent or more than the cost of electrical power from the energy.