Prior to you sign your name to a solar panel lease on your house in San Marcos CA 92069 you have to comprehend what you are truly getting into. If you’re in business of selling solar leases possibly you need to try Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year contract. Possibly you’ll now comprehend why you get a lot of cancellations and why if you don’t close the deal on the first consultation you’ve got almost no chance of closing it later. Why not change your approach do what’s right for the consumer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in San Marcos CA 92069 or PPA Sales Pitch generally includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those monthly payments throughout 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 factor in the interest paid on the solar loan. Numerous zero cash down solar loans are available. If you have the credit score to get approved for the lease you can use the bank’s money to fund your solar system with no cash down.
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2. No worries. The leasing/PPA company in San Marcos CA 92069 is responsible for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which has to do with just maintenance needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and have exceptionally long maker’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices producers are bigger and more financially stable than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business insures 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. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping track of for the life of the system, using the very same tracking equipment utilized by the renting business.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you also just sign an agreement and the solar contractors does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t affect your debt to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high cost. If this is among your main issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t hit your personal credit or impact your debt to income ratio. And those programs enable virtually any homeowner to go solar regardless of their credit rating.
Now for the 6 primary downsides to a solar lease in San Marcos CA 92069 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are purchasing solar on your roof! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the renting company becomes a 2nd energy. So, sign a solar lease and now you have 2 energy business you need to pay each month.
3. Many leases or PPAs lug a yearly cost escalator, normally 2.9 %. So while you might be saving cash today in a several years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any appropriate cash discounts. You likewise won’t have the ability 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. In contrast, if you buy a solar system once the solar loan is paid off you can enjoy 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 troublesome. Solar leases require the 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 commitments of your lease. This is particularly true if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the expense of electricity from the utility.