Before you sign your name to a solar panel lease on your home in Spring Valley CA 91979 you have to understand exactly what you are really getting into. If you’re in the business of offering solar leases maybe you ought to 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 may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of research online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you do not seal the deal on the very first consultation you’ve got almost no possibility of closing it later on. Why not change your approach do exactly what’s right for the client and get on board with a business that offers industry leading value (rate + quality + service).
The Solar Lease in Spring Valley CA 91979 or PPA Sales Pitch normally consists of 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you add up all of those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit history to get the lease you can utilize the bank’s cash to finance your solar system with no money down.
[ssvideo keyword=”Solar Contractors” title=”Solar Companies in Spring Valley”]
2. No worries. The leasing/PPA business in Spring Valley CA 91979 is responsible for all repair and maintenance on the system.
The renting company will certainly not clean your solar panels which is about just upkeep used on a solar system. Solar systems are very low maintenance with no moving parts and have very long maker’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Many tier 1 solar devices manufacturers are larger and more financially stable than the solar leasing company by many multiples. Those long service warranties are backed up by a 20 year bumper to bumper guarantee 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 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 purchase a system you also get monitoring for the life of the system, using the exact same tracking devices made use of by the leasing business.
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 professionals does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not impact your financial obligation to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high cost. If this is one of your major concerns there are financing alternatives for a purchase (PACE and HERO) that also do not strike your individual credit or influence your financial obligation to earnings ratio. And those programs enable nearly any house owner to go solar despite their credit score.
Now for the 6 main disadvantages to a solar lease in Spring Valley CA 91979 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 buying solar on your roofing system! You’re just providing them a guaranteed 20 year capital!
2. Now you have two energy costs not simply one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have 2 energy companies you need to pay each month.
3. The majority of leases or PPAs bring a yearly cost escalator, normally 2.9 %. So while you may be conserving money today in a numerous years you will not be.
4. You won’t have the ability to claim the 30 % federal tax credit and any suitable money refunds. You also won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever 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 paid off you can get complimentary electricity 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 assume the lease and terms. If you check out any of the above you can most likely see why an educated consumer would not have an interest in presuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the annual cost escalator in the lease has actually now raised the cost of electrical energy to equivalent or more than the expense of electrical power from the utility.