Prior to you sign your name to a solar panel lease on your house in Palm Desert CA 92211 you have to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year contract. Possibly you’ll now understand why you get numerous cancellations and why if you don’t seal the deal on the first visit you’ve got nearly no opportunity of closing it later on. Why not change your strategy do what’s right for the consumer and get on board with a company that supplies industry leading value (cost + quality + service).
The Solar Lease in Palm Desert CA 92211 or PPA Sales Pitch typically includes six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money 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 monthly payments throughout 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 consider the interest paid on the solar loan. Many absolutely no money down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA company in Palm Desert CA 92211 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which has to do with just upkeep used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and have exceptionally long manufacturer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar equipment manufacturers 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– go solar with a lease and the renting company insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing 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, using the exact same monitoring equipment made use of by the leasing business.
5. Just sign an agreement and the renting company does everything else.
When acquiring a system you also just sign an agreement and the solar contractors does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only true advantage of the lease however it comes at an awefully high rate. If this is among your major issues there are funding options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your debt to earnings ratio. And those programs permit practically any property owner to go solar regardless of their credit rating.
Now for the 6 primary drawbacks to a solar lease in Palm Desert CA 92211 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 investing in solar on your roofing! You’re just providing them an ensured 20 year cash flow!
2. Now you have two energy bills not just one! In essence the renting business becomes a 2nd energy. So, sign a solar lease and now you have 2 utility companies you need to pay monthly.
3. The majority of leases or PPAs lug a yearly cost escalator, typically 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any relevant money rebates. 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 totally 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 delight 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 house with a solar lease or PPA can be troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed consumer would not have an interest in assuming the obligations of your lease. This is especially 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 electrical energy to equal or more than the expense of electrical power from the utility.