Before you sign your name to a solar panel lease on your house in Temecula CA 92592 you need to understand what you are really getting into. If you’re in the business of offering solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year contract. Possibly you’ll now understand why you get a lot of cancellations and why if you do not seal the deal on the very first appointment you’ve got practically no chance of closing it later. Why not change your technique do what’s right for the customer and get on board with a business that supplies industry leading value (rate + quality + service).
The Solar Lease in Temecula CA 92592 or PPA Sales Pitch usually consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying absolutely 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 consider the interest paid on the solar loan. Lots of no money down solar loans are available. If you have the credit score to qualify for the lease you can use the bank’s cash to finance your solar system with zero money down.
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2. No worries. The leasing/PPA company in Temecula CA 92592 is liable for all maintenance and repairs on the system.
The renting company will certainly not clean your solar panels which has to do with only upkeep needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and come with very long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by many multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing 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, making use of the very same monitoring equipment utilized by the renting company.
5. Just sign an agreement and the leasing company does everything else.
When buying a system you also simply sign an agreement and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t influence your financial obligation to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high rate. If this is one of your primary issues there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or impact your financial obligation to income ratio. And those programs enable practically any property owner to go solar regardless of their credit rating.
Now for the 6 main disadvantages to a solar lease in Temecula CA 92592 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are buying solar on your roofing! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy bills not just one! In essence the leasing business ends up being a second energy. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. A lot of leases or PPAs lug a yearly cost escalator, generally 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 assert the 30 % federal tax credit and any suitable cash rebates. You also won’t have the ability 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 acquire a solar system once the solar loan is settled you can delight in totally free electrical energy 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 require the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an educated consumer would not be interested in presuming the commitments 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 now raised the expense of electricity to equal or more than the expense of electrical power from the utility.