Before you sign your name to a solar panel lease on your home in El Cajon CA 92019 you need to comprehend exactly what you are really getting into. If you’re in business of offering solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are reading if they do even a small amount of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will certainly check out when they do 30 minutes of research online prior to committing to a 20 year agreement. Perhaps you’ll now understand why you get many cancellations and why if you don’t close the deal on the very first appointment you’ve got virtually no possibility of closing it later on. Why not change your method do exactly what’s right for the customer and get on board with a company that offers market leading value (cost + quality + service).
The Solar Lease in El Cajon CA 92019 or PPA Sales Pitch generally consists of 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those regular monthly payments throughout 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 factor in the interest paid on the solar loan. Numerous zero cash down solar loans are readily available. If you have the credit report to qualify for the lease you can utilize 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 El Cajon CA 92019 is responsible for all repair and maintenance on the system.
The renting business will not clean your photovoltaic panels which has to do with only upkeep required on a solar system. Solar systems are incredibly low upkeep without any moving parts and feature very long manufacturer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing business by numerous multiples. Those long warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– 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 simply a couple dollars per month.
4. Tracking– the leasing company 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, making use of the very same tracking equipment used by the leasing business.
5. Simply sign an agreement and the renting company does everything else.
When buying a system you likewise simply sign an agreement and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease does not strike your personal credit. Doesn’t influence your debt to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high cost. If this is among your major concerns there are funding choices for a purchase (PACE and HERO) that also do not hit your individual credit or influence your debt to earnings ratio. And those programs enable virtually any property owner to go solar despite their credit rating.
Now for the six primary disadvantages 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 a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re just supplying them a guaranteed 20 year capital!
2. Now you have 2 energy costs not just one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. A lot of leases or PPAs carry a yearly expense escalator, typically 2.9 %. So while you might be conserving money today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any suitable cash refunds. You also will not have the ability to claim 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 buy a solar system once the solar loan is paid off you can delight in totally free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases use the new owner to presume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not have an interest in assuming the commitments of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the cost of electricity to equal or more than the expense of electrical energy from the utility.