Before you sign your name to a solar panel lease on your house in El Cajon CA 92090 you need to understand exactly what you are really getting into. If you’re in business of selling solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are checking out if they do even a percentage of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly check out when they do 30 minutes of research online before dedicating to a 20 year agreement. Possibly you’ll now understand why you get many cancellations and why if you do not seal the deal on the first consultation you’ve got nearly no opportunity of closing it later on. Why not alter your technique do what’s right for the client and get on board with a business that offers market leading value (rate + quality + service).
The Solar Lease in El Cajon CA 92090 or PPA Sales Pitch typically consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all of those regular monthly payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many zero money down solar loans are offered. If you have the credit history to get the lease you can make use of the bank’s cash to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in El Cajon CA 92090 is liable for all repair and maintenance on the system.
The leasing company will not clean your solar panels which has to do with only maintenance used on a solar system. Solar systems are extremely low upkeep without any moving parts and include incredibly long manufacturer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar devices makers are bigger and more solvent than the solar leasing business by many multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business guarantees 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 leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, using the same monitoring equipment utilized by the renting business.
5. Simply sign an agreement and the leasing business does everything else.
When buying a system you likewise simply sign an agreement and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar specialist’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t impact your financial obligation to earnings ratio.
This might be the only real benefit of the lease but it comes at an awefully high price. If this is among your main issues there are financing options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your financial obligation to earnings ratio. And those programs permit nearly any house owner to go solar regardless of their credit rating.
Now for the six main disadvantages to a solar lease in El Cajon CA 92090 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are buying solar on your roof! You’re just offering them an ensured 20 year capital!
2. Now you have two energy expenses not just one! In essence the renting company ends up being a second utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. The majority of leases or PPAs bring a yearly cost escalator, normally 2.9 %. So while you may be conserving money today in a numerous years you will not be.
4. You won’t have the ability to assert the 30 % federal tax credit and any applicable money discounts. You also will not be able 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 paid off you can delight in complimentary electrical power 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 bothersome. Solar leases require the brand-new owner to assume 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 specifically true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the expense of electrical energy to equal or more than the cost of electricity from the utility.