Before you sign your name to a solar panel lease on your house in Temecula CA 92593 you need to understand what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see 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. buy”. Read what your consumer’s will read when they do 30 minutes of research online before dedicating to a 20 year contract. Maybe you’ll now understand why you get a lot of cancellations and why if you don’t seal the deal on the first appointment you’ve got almost no opportunity of closing it later on. Why not alter your technique do exactly what’s right for the customer and get on board with a company that provides industry leading value (rate + quality + service).
The Solar Lease in Temecula CA 92593 or PPA Sales Pitch usually consists of six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many absolutely no money down solar loans are offered. If you have the credit history to get approved for the lease you can make use of the bank’s money to finance your solar system with no cash down.
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2. No fears. The leasing/PPA company in Temecula CA 92593 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which has to do with just upkeep needed on a solar system. Solar systems are very low maintenance without any moving parts and come with very long maker’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar equipment makers are larger and more solvent than the solar leasing company by many multiples. Those long warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing 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. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, utilizing the exact same tracking equipment used by the renting company.
5. Simply sign an agreement and the leasing business does everything else.
When acquiring a system you also just sign an agreement and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Does not impact your financial obligation to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high cost. If this is among your main concerns there are funding choices for a purchase (PACE and HERO) that also don’t hit your personal credit or influence your financial obligation to income ratio. And those programs allow virtually any homeowner to go solar despite their credit rating.
Now for the 6 major disadvantages to a solar lease in Temecula CA 92593 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 supplying them a guaranteed 20 year cash flow!
2. Now you have 2 energy costs not simply one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. The majority of leases or PPAs carry a yearly expense escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You will not have the ability to assert the 30 % federal tax credit and any relevant money discounts. You also won’t be able to claim 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 buy a solar system once the solar loan is settled 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. Offering your home with a solar lease or PPA can be problematic. Solar leases use the new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed customer would not have an interest in presuming the responsibilities 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 cost of electricity from the utility.