Prior to you sign your name to a solar panel lease on your home in Riverside CA 92513 you need to understand exactly what you are really getting into. If you’re in the business of offering solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a small amount of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will read when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get so many cancellations and why if you don’t close the deal on the very first consultation you’ve got almost no possibility of closing it later. Why not alter your strategy do exactly what’s right for the customer and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in Riverside CA 92513 or PPA Sales Pitch usually consists of six main points. 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 hardly paying absolutely nothing. If you add up all of those monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many no cash down solar loans are available. If you have the credit report to qualify for 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 Riverside CA 92513 is accountable for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are exceptionally low maintenance with no moving parts and feature very long producer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar equipment makers are bigger and more solvent than the solar leasing business by lots of multiples. Those long service 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 business 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. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping an eye on for the life of the system, utilizing the same monitoring devices used by the leasing business.
5. Simply sign a contract and the renting business does everything else.
When buying a system you also simply sign an agreement and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your debt to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high cost. If this is among your primary concerns there are funding options for a purchase (PACE and HERO) that likewise don’t strike your personal credit or impact your financial obligation to earnings ratio. And those programs enable almost any homeowner to go solar regardless of their credit rating.
Now for the six major drawbacks to a solar lease in Riverside CA 92513 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are investing in solar on your roof! You’re simply providing them an ensured 20 year capital!
2. Now you have 2 energy bills not simply one! In essence the leasing company ends up being a second utility. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. A lot of leases or PPAs carry an annual expense escalator, typically 2.9 %. So while you might be saving money today in a numerous years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any appropriate cash refunds. You likewise won’t be able to assert 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 acquire 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 upon the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not be interested in presuming the responsibilities of your lease. This is particularly real 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 cost of electrical power from the utility.