Before you sign your name to a solar panel lease on your house in Spring Valley CA 91978 you need to understand what you are really getting into. If you’re in business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will read when they do 30 minutes of research online before committing to a 20 year contract. Possibly you’ll now understand why you get many cancellations and why if you don’t close the deal on the very first consultation you’ve got practically no possibility of closing it later. Why not change your method do what’s right for the consumer and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Spring Valley CA 91978 or PPA Sales Pitch typically includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you add up all of those monthly 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 factor in the interest paid on the solar loan. Many zero money down solar loans are offered. If you have the credit report to get approved for the lease you can use the bank’s money to finance your solar system with zero money down.
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2. No worries. The leasing/PPA company in Spring Valley CA 91978 is accountable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which has to do with just upkeep used on a solar system. Solar systems are extremely low upkeep with no moving parts and come with extremely long producer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar devices producers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping an eye on for the life of the system, utilizing the exact same tracking devices made use of by the renting company.
5. Simply sign a contract and the renting company does everything else.
When purchasing a system you likewise just sign a contract and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your personal credit. Does not influence your financial obligation to earnings ratio.
This may be the only true advantage of the lease however it comes at an awefully high price. If this is one of your major issues there are funding choices for a purchase (PACE and HERO) that likewise don’t strike your personal credit or influence your debt to income ratio. And those programs allow virtually any property owner to go solar despite their credit rating.
Now for the 6 major 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 business are purchasing solar on your roofing system! You’re simply offering them a guaranteed 20 year capital!
2. Now you have 2 energy bills not simply one! In essence the renting company ends up being a second utility. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. A lot of leases or PPAs carry a yearly expense escalator, usually 2.9 %. So while you might be conserving money today in a several years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant cash rebates. You likewise will not have the ability to declare 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 settled you can get complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases use the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated customer would not want assuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the cost of electrical energy to equal or more than the expense of electrical power from the energy.