Before you sign your name to a solar panel lease on your house in Dana Point CA 92629 you need to understand what you are really getting into. If you’re in the business of selling solar leases possibly you need to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a small amount of research. You also 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 study online prior to committing to a 20 year agreement. Maybe you’ll now comprehend why you get so many cancellations and why if you don’t seal the deal on the first visit you’ve got almost no opportunity of closing it later. Why not alter your technique do exactly what’s right for the customer and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in Dana Point CA 92629 or PPA Sales Pitch normally consists of 6 bottom lines. We discussed 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 nothing. If you accumulate all of those regular monthly payments during the regard to 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. Numerous no cash down solar loans are readily available. If you have the credit score to get approved for the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA business in Dana Point CA 92629 is accountable for all maintenance and repairs on the system.
The leasing company will not clean your photovoltaic panels which is about only upkeep needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and have exceptionally long manufacturer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar equipment manufacturers are bigger and more solvent 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 company insures 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. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, utilizing the very same tracking devices used by the leasing business.
5. Simply sign an agreement and the renting company does everything else.
When purchasing a system you likewise just sign a contract and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not influence your financial obligation to earnings ratio.
This may be the only real benefit of the lease however it comes at an awefully high price. If this is among your primary issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not hit your personal credit or affect your debt to earnings ratio. And those programs enable nearly any house owner to go solar no matter their credit rating.
Now for the six major disadvantages to a solar lease in Dana Point CA 92629 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are investing in solar on your roof! You’re just offering them a guaranteed 20 year cash flow!
2. Now you have 2 utility costs not simply one! In essence the leasing company becomes a 2nd utility. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. Most leases or PPAs bring an annual expense escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any suitable money discounts. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is paid off 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 house with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated customer would not have an interest in assuming the obligations of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the cost of electricity to equal or more than the expense of electrical energy from the energy.