Before you sign your name to a solar panel lease on your house in San Diego CA 92127 you have to understand what you are actually getting into. If you’re in the business of offering solar leases perhaps you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will certainly read when they do 30 minutes of study online before dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get numerous cancellations and why if you don’t close the deal on the first consultation you’ve got almost no chance of closing it later. Why not alter your strategy do exactly what’s right for the consumer and get on board with a company that offers market leading value (price + quality + service).
The Solar Lease in San Diego CA 92127 or PPA Sales Pitch usually includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you add up all of those month-to-month payments throughout the term of 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. Many zero cash down solar loans are available. If you have the credit history to get the lease you can use the bank’s money to fund your solar system with zero money down.
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2. No concerns. The leasing/PPA company in San Diego CA 92127 is responsible for all repair and maintenance on the system.
The leasing company will not clean your solar panels which has to do with only maintenance needed on a solar system. Solar systems are incredibly low maintenance without any moving parts and have incredibly long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. A lot of tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a just a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping track of for the life of the system, using the exact same tracking equipment utilized by the renting company.
5. Simply sign a contract and the leasing company does everything else.
When buying a system you likewise simply sign a contract and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your debt to earnings ratio.
This might be the only real benefit of the lease however 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 hit your personal credit or influence your financial obligation to earnings ratio. And those programs permit nearly any homeowner to go solar despite their credit score.
Now for the six major disadvantages to a solar lease in San Diego CA 92127 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 purchasing solar on your roof! You’re simply providing them an ensured 20 year capital!
2. Now you have 2 utility expenses not just one! In essence the renting business becomes a second energy. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. Most leases or PPAs carry an annual cost escalator, usually 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any suitable cash refunds. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free 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 enjoy totally free 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 troublesome. Solar leases need the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not want presuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electrical energy to equal or more than the cost of electricity from the energy.