Prior to you sign your name to a solar panel lease on your house in San Diego CA 92194 you have to comprehend what you are really getting into. If you’re in 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 client’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. purchase”. Read exactly what your client’s will read when they do 30 minutes of study online before committing to a 20 year contract. Maybe you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first consultation you’ve got practically no possibility of closing it later. Why not change your approach do exactly what’s right for the customer and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in San Diego CA 92194 or PPA Sales Pitch usually includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying nothing. If you add up all of those month-to-month payments throughout the regard to the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of absolutely no cash down solar loans are readily available. If you have the credit score to get the lease you can use the bank’s cash to fund your solar system with zero money down.
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2. No concerns. The leasing/PPA company in San Diego CA 92194 is liable for all repair and maintenance on the system.
The leasing company will certainly not clean your solar panels which is about just upkeep required on a solar system. Solar systems are exceptionally low upkeep without any moving parts and feature extremely long manufacturer’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, making use of the very same tracking devices used by the leasing business.
5. Simply sign an agreement and the renting business does everything else.
When buying a system you also simply sign an agreement and the solar service providers does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t influence your financial obligation to earnings ratio.
This might be the only true advantage of the lease however it comes at an awefully high cost. If this is one of your major issues there are financing alternatives for a purchase (PACE and HERO) that likewise don’t strike your personal credit or impact your financial obligation to income ratio. And those programs enable virtually any property owner to go solar despite their credit score.
Now for the six major downsides to a solar lease in San Diego CA 92194 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are buying solar on your roof! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the renting business becomes a 2nd energy. So, sign a solar lease and now you have 2 energy business you have to pay each month.
3. A lot of leases or PPAs bring a yearly expense escalator, normally 2.9 %. So while you might be saving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash rebates. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can get totally free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an educated consumer would not be interested in presuming the responsibilities of your lease. This is specifically real if the lease is 7 or more years of ages 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.