Prior to you sign your name to a solar panel lease on your house in Temecula CA 92590 you have to understand exactly what you are actually getting into. If you’re in the business of offering solar leases maybe you must try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of research. You likewise may 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 research online prior to dedicating to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the very first visit you’ve got virtually no possibility of closing it later. Why not change your strategy do exactly what’s right for the customer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in Temecula CA 92590 or PPA Sales Pitch usually 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 assure to pay X hundred dollars per month is hardly paying nothing. If you build up all those month-to-month payments during the term of the contract 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 available. If you have the credit history to get approved for the lease you can use the bank’s cash to fund your solar system with no money down.
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2. No worries. The leasing/PPA company in Temecula CA 92590 is liable for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which has to do with only maintenance needed on a solar system. Solar systems are exceptionally low maintenance without any moving parts and include incredibly long producer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment makers are larger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business 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 renting company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, using the very same tracking equipment used by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When acquiring a system you also simply sign a contract and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only real benefit of the lease however it comes at an awefully high rate. If this is one of your major issues there are funding alternatives for a purchase (PACE and HERO) that also do not strike your individual credit or impact your financial obligation to earnings ratio. And those programs permit almost any homeowner to go solar no matter their credit rating.
Now for the six major drawbacks to a solar lease in Temecula CA 92590 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 cash flow!
2. Now you have two utility expenses not just one! In essence the leasing company ends up being a second energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. A lot of leases or PPAs carry an annual cost escalator, normally 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any appropriate cash discounts. You also will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is paid off you can delight in complimentary electrical power from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be troublesome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not want presuming the commitments of your lease. This is specifically true if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the cost of electrical energy to equal or more than the cost of electrical power from the energy.