Prior to you sign your name to a solar panel lease on your home in Spring Valley CA 91976 you have to comprehend what you are truly getting into. If you’re in business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are reading if they do even a small amount of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will check out when they do 30 minutes of study online before dedicating to a 20 year contract. Perhaps you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the very first appointment you’ve got almost no possibility of closing it later. Why not alter your method do exactly what’s right for the client and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in Spring Valley CA 91976 or PPA Sales Pitch generally includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all those regular monthly payments during the term of the agreement 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. Many zero cash down solar loans are offered. If you have the credit report to qualify for the lease you can make use of the bank’s money to finance your solar system with zero money down.
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2. No fears. The leasing/PPA company in Spring Valley CA 91976 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your solar panels which has to do with only upkeep required on a solar system. Solar systems are extremely low maintenance without any moving parts and come with incredibly long maker’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar equipment producers are larger and more solvent than the solar leasing company by many multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a simply 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, making use of the same tracking devices utilized by the leasing business.
5. Just sign a contract and the leasing company does everything else.
When buying a system you likewise simply sign a contract and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t affect your financial obligation to income ratio.
This may be the only true benefit of the lease but it comes at an awefully high cost. If this is among your major concerns there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your individual credit or impact your financial obligation to earnings ratio. And those programs enable practically any homeowner to go solar no matter their credit score.
Now for the 6 major drawbacks to a solar lease in Spring Valley CA 91976 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 buying solar on your roofing system! You’re just supplying them an ensured 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have 2 energy business you have to pay each month.
3. The majority of leases or PPAs lug an annual cost escalator, usually 2.9 %. So while you might be saving cash today in a several years you will not be.
4. You won’t have the ability to claim the 30 % federal tax credit and any applicable cash rebates. You likewise won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary 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 complimentary electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can probably see why an educated customer would not be interested in presuming the responsibilities of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electrical power from the utility.