Before you sign your name to a solar panel lease on your home in San Diego CA 92107 you need to understand what you are truly 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 customer’s are reading if they do even a percentage of research. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly read when they do 30 minutes of research online before committing to a 20 year agreement. Maybe you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first appointment you’ve got almost no possibility of closing it later. Why not change your approach do what’s right for the client and get on board with a business that supplies industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92107 or PPA Sales Pitch usually includes 6 bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those regular monthly payments during the regard to the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Numerous absolutely no money down solar loans are readily available. If you have the credit score to qualify for the lease you can utilize the bank’s money to fund your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92107 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are extremely low maintenance without any moving parts and have exceptionally long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar devices makers are larger and more financially stable than the solar leasing company by many multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee 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 property owner’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 buy a system you also get monitoring for the life of the system, making use of the same tracking devices made use of by the renting business.
5. Simply sign an agreement and the renting company does everything else.
When purchasing a system you likewise simply sign a contract and the solar contractors does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your individual credit. Does not affect your financial obligation to earnings ratio.
This may be the only real benefit of the lease however it comes at an awefully high cost. If this is one of your primary concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your debt to earnings ratio. And those programs enable practically any house owner to go solar regardless of their credit score.
Now for the six major downsides to a solar lease in San Diego CA 92107 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are investing in solar on your roofing! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. The majority of leases or PPAs bring an annual cost escalator, usually 2.9 %. So while you may be conserving cash today in a several years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any appropriate cash refunds. You likewise 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. On the other hand, if you buy a solar system once the solar loan is paid off 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 home with a solar lease or PPA can be problematic. Solar leases use 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 be interested in assuming the obligations of your lease. This is especially true if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the cost of electricity to equal or more than the cost of electricity from the utility.