Before you sign your name to a solar panel lease on your house in El Cajon CA 92020 you have to understand what you are really getting into. If you’re in business of offering solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’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 what your client’s will check out when they do 30 minutes of study online prior to committing to a 20 year contract. Perhaps you’ll now comprehend why you get so many cancellations and why if you do not seal the deal on the very first consultation you’ve got almost no chance of closing it later on. Why not change your approach do what’s right for the client and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in El Cajon CA 92020 or PPA Sales Pitch normally includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those monthly payments during the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit score to get the lease you can utilize the bank’s cash 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 92020 is accountable for all maintenance and repairs on the system.
The renting company will not clean your solar panels which is about just upkeep needed on a solar system. Solar systems are extremely low upkeep with no moving parts and include incredibly long manufacturer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar devices makers are bigger and more financially stable than the solar leasing company by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company 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. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, using the very same monitoring equipment utilized by the renting company.
5. Simply sign an agreement and the renting business does everything else.
When buying a system you likewise just 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 professional’s contract is 2 pages.
6. A lease does not hit your personal credit. Doesn’t affect your debt to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high rate. If this is among your main concerns there are financing choices for a purchase (PACE and HERO) that also do not hit your personal credit or impact your debt to earnings ratio. And those programs enable nearly any property owner to go solar despite their credit score.
Now for the 6 main drawbacks to a solar lease in El Cajon CA 92020 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 just providing them an ensured 20 year capital!
2. Now you have two energy bills not just one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have 2 energy companies you need to pay monthly.
3. The majority of leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you may be saving cash today in a several years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate money refunds. You likewise won’t have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never 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 take pleasure in free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not want assuming the commitments of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the expense of electrical energy to equivalent or more than the expense of electricity from the energy.