Before you sign your name to a solar panel lease on your home in Spring Valley CA 91976 you have to comprehend exactly what you are actually getting into. If you’re in business of offering solar leases possibly you should attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are checking out if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will read when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no chance 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 supplies industry leading value (cost + quality + service).
The Solar Lease in Spring Valley CA 91976 or PPA Sales Pitch typically consists of six bottom lines. 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 accumulate all of those month-to-month payments throughout the regard to the agreement 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 cash down solar loans are available. If you have the credit report to get the lease you can use the bank’s cash to fund your solar system with no cash down.
[ssvideo keyword=”Solar Contractors” title=”Solar Companies in Spring Valley”]
2. No fears. The leasing/PPA company in Spring Valley CA 91976 is responsible for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are very low upkeep with no moving parts and have extremely long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Many tier 1 solar devices producers are larger and more solvent than the solar leasing company by numerous multiples. Those long service warranties 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 company 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. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping an eye on for the life of the system, making use of the exact same monitoring equipment used by the renting business.
5. Simply sign an agreement and the renting 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 agreement is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease does not hit your personal credit. Does not affect your debt to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high cost. If this is one of your major issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your personal credit or influence your debt to income ratio. And those programs allow virtually any house owner to go solar despite their credit rating.
Now for the six 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 companies are purchasing solar on your roofing! You’re simply providing them an ensured 20 year cash flow!
2. Now you have 2 energy costs not simply one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. Many leases or PPAs bring a yearly cost escalator, generally 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 appropriate cash discounts. You also won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is settled you can get complimentary electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”Spring Valley CA”]
6. Offering your house with a solar lease or PPA can be bothersome. Solar leases need the new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not want assuming the commitments of your lease. This is especially real if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical power to equal or more than the expense of electrical energy from the utility.