Prior to you sign your name to a solar panel lease on your home in Temecula CA 92591 you have to comprehend what you are really getting into. If you’re in the business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a percentage of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly read when they do 30 minutes of research online before committing to a 20 year agreement. Maybe you’ll now comprehend why you get a lot of cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no possibility of closing it later on. Why not change your approach do what’s right for the customer and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in Temecula CA 92591 or PPA Sales Pitch normally consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is barely paying nothing. If you build up all of those month-to-month payments during the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no cash down solar loans are offered. If you have the credit score to get the lease you can utilize the bank’s money to finance your solar system with zero money down.
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2. No fears. The leasing/PPA business in Temecula CA 92591 is liable for all repair and maintenance on the system.
The leasing business will certainly not clean your photovoltaic panels which has to do with just upkeep required on a solar system. Solar systems are very low upkeep with no moving parts and have very long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing business by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Tracking– the renting business 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, making use of the very same monitoring devices used by the leasing company.
5. Simply sign a contract and the renting business does everything else.
When purchasing a system you likewise simply sign an agreement and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t influence your financial obligation to earnings ratio.
This may be the only real advantage of the lease but it comes at an awefully high rate. If this is one of your major issues there are financing options for a purchase (PACE and HERO) that also do not strike your individual credit or impact your debt to income ratio. And those programs permit practically any house owner to go solar regardless of their credit rating.
Now for the 6 major downsides to a solar lease in Temecula CA 92591 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 investing in solar on your roofing system! You’re simply providing them an ensured 20 year cash flow!
2. Now you have two energy expenses not simply one! In essence the renting company becomes a second utility. So, sign a solar lease and now you have two energy companies you need to pay each month.
3. Many leases or PPAs carry a yearly cost escalator, normally 2.9 %. So while you may be saving money today in a numerous years you will not be.
4. You won’t be able to claim the 30 % federal tax credit and any suitable money discounts. You likewise will not 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 paid off you can get 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 house with a solar lease or PPA can be troublesome. Solar leases need the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened consumer would not have an interest in assuming the commitments of your lease. This is especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has actually now raised the expense of electrical power to equivalent or more than the expense of electrical power from the energy.