Prior to you sign your name to a solar panel lease on your home in San Diego CA 92158 you have to comprehend exactly what you are actually getting into. If you’re in the business of selling solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are checking out if they do even a small amount 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 study online before dedicating to a 20 year agreement. Perhaps you’ll now understand why you get many cancellations and why if you do not close the deal on the first consultation you’ve got virtually no opportunity of closing it later. Why not change your strategy do exactly what’s right for the consumer and get on board with a company that supplies industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92158 or PPA Sales Pitch generally includes 6 bottom lines. We talked about 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 barely paying absolutely nothing. If you add up all those monthly payments during the term of the agreement 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 absolutely no cash down solar loans are available. If you have the credit report to get approved for the lease you can make use of 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 San Diego CA 92158 is accountable for all maintenance and repairs on the system.
The renting company will not clean your solar panels which is about just maintenance required on a solar system. Solar systems are incredibly low upkeep without any moving parts and have exceptionally long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Many tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by numerous multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business 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. Monitoring– the renting 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 same tracking devices used by the leasing company.
5. Simply sign a contract and the renting company does everything else.
When acquiring a system you likewise simply sign an agreement and the solar service providers does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only real advantage of the lease but it comes at an awefully high cost. If this is among your main issues there are financing choices for a purchase (PACE and HERO) that likewise don’t hit your individual credit or influence your financial obligation to earnings ratio. And those programs permit practically any property owner to go solar despite their credit rating.
Now for the six major disadvantages to a solar lease in San Diego CA 92158 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roofing! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have two energy expenses not simply one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. The majority of leases or PPAs lug a yearly expense escalator, generally 2.9 %. So while you might be conserving money today in a several years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any suitable money discounts. You also 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 settled you can enjoy totally free 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 brand-new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened customer would not want assuming the responsibilities of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.