Prior to you sign your name to a solar panel lease on your house in Orange CA 92866 you need to understand exactly what you are actually getting into. If you’re in business of selling solar leases maybe you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are reading if they do even a small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will 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 so many cancellations and why if you don’t close the deal on the first visit you’ve got practically no possibility of closing it later. Why not change your approach do exactly what’s right for the consumer and get on board with a company that provides industry leading value (rate + quality + service).
The Solar Lease in Orange CA 92866 or PPA Sales Pitch typically consists of six main points. We went over 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 barely paying absolutely nothing. If you build up all those regular monthly payments during the regard to the agreement 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. Numerous no money down solar loans are available. If you have the credit history to qualify for the lease you can use the bank’s money to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA company in Orange CA 92866 is responsible for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which is about only maintenance used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and feature exceptionally long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar equipment makers are bigger and more solvent than the solar leasing company by many multiples. Those long 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 house owner’s policy for a simply a couple dollars per month.
4. Tracking– the renting business 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 very same tracking devices used by the leasing company.
5. Just sign an agreement and the leasing business does everything else.
When acquiring a system you also simply sign a contract and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t affect your debt to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high price. If this is among your primary concerns there are financing alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or impact your debt to income ratio. And those programs enable virtually any property owner to go solar despite their credit score.
Now for the 6 primary disadvantages to a solar lease in Orange CA 92866 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are buying solar on your roof! You’re just offering them an ensured 20 year capital!
2. Now you have 2 energy bills 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 need to pay monthly.
3. Most leases or PPAs lug an annual cost escalator, generally 2.9 %. So while you might be conserving money today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant cash discounts. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free 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 totally free electricity from the sun for 10– 15 years depending on 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 need the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not be interested in assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electricity to equal or more than the cost of electrical power from the utility.