Before you sign your name to a solar panel lease on your home in El Cajon CA 92019 you need to understand exactly what you are really getting into. If you’re in the business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly read when they do 30 minutes of study online prior to committing to a 20 year contract. Possibly you’ll now understand why you get numerous cancellations and why if you do not seal the deal on the first appointment you’ve got nearly no possibility of closing it later on. Why not alter your strategy do exactly what’s right for the consumer and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in El Cajon CA 92019 or PPA Sales Pitch normally 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 where you assure to pay X hundred dollars per month is barely paying nothing. If you add up all those monthly payments during the term of the contract 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. Numerous zero money down solar loans are available. If you have the credit score to get the lease you can make use of the bank’s money to finance your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in El Cajon CA 92019 is liable for all maintenance and repairs on the system.
The leasing business will not clean your solar panels which has to do with only upkeep needed on a solar system. Solar systems are extremely low upkeep without any moving parts and feature extremely long maker’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting business guarantees the system.
Purchase a system and the solar system is covered under your homeowner’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 acquire a system you likewise get monitoring for the life of the system, making use of the exact same tracking devices used by the renting business.
5. Just sign a contract and the leasing business does everything else.
When acquiring a system you likewise just sign a contract and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your financial obligation to income ratio.
This might be the only real advantage of the lease however it comes at an awefully high price. If this is one of your primary concerns there are financing alternatives for a purchase (PACE and HERO) that likewise don’t hit your individual credit or impact your financial obligation to income ratio. And those programs permit almost any homeowner to go solar despite their credit score.
Now for the 6 major downsides to a solar lease in El Cajon CA 92019 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 buying solar on your roofing system! You’re simply providing them an ensured 20 year capital!
2. Now you have two utility expenses not just one! In essence the renting business becomes a 2nd energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. Many leases or PPAs bring a yearly expense escalator, generally 2.9 %. So while you might be conserving cash today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any suitable money refunds. You also will not be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can enjoy 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 home with a solar lease or PPA can be bothersome. Solar leases require the new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed customer would not be interested in presuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electrical power from the energy.