Prior to you sign your name to a solar panel lease on your home in Spring Valley CA 91978 you need to understand exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are checking out if they do even a percentage of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year agreement. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the very first consultation you’ve got practically no opportunity of closing it later. Why not change your strategy do exactly what’s right for the customer and get on board with a company that supplies industry leading value (rate + quality + service).
The Solar Lease in Spring Valley CA 91978 or PPA Sales Pitch typically includes 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 assure to pay X hundred dollars per month is hardly paying nothing. If you build up all those regular monthly payments during the term of 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. Lots of zero money down solar loans are offered. If you have the credit report to qualify for the lease you can use the bank’s money to fund your solar system with no cash down.
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2. No concerns. The leasing/PPA business in Spring Valley CA 91978 is liable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which has to do with only maintenance needed on a solar system. Solar systems are incredibly low upkeep without any moving parts and have extremely long manufacturer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar devices producers are larger and more solvent than the solar leasing business by many multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– 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 simply a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, using the exact same monitoring equipment utilized by the renting company.
5. Just sign an agreement and the renting business does everything else.
When acquiring a system you also just sign an agreement and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t influence your financial obligation to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high cost. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that likewise don’t hit your individual credit or affect your debt to earnings ratio. And those programs allow virtually any homeowner to go solar despite their credit rating.
Now for the six primary disadvantages to a solar lease in Spring Valley CA 91978 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 energy costs not just one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. The majority of leases or PPAs lug an annual cost escalator, typically 2.9 %. So while you may be saving money today in a numerous years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any suitable cash rebates. You likewise will not have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can get free electrical energy 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 require the brand-new owner to presume the lease and terms. If you read any of the above you can probably see why an educated consumer would not want presuming the commitments of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electricity to equal or more than the cost of electricity from the utility.