Before you sign your name to a solar panel lease on your home in Santa Ana CA 92701 you have to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases possibly 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 may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now understand why you get numerous cancellations and why if you do not seal the deal on the very first consultation you’ve got virtually no opportunity of closing it later. Why not alter your approach do exactly what’s right for the consumer and get on board with a business that supplies industry leading value (cost + quality + service).
The Solar Lease in Santa Ana CA 92701 or PPA Sales Pitch usually 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 contract in which you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those regular monthly payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Numerous no money down solar loans are readily available. If you have the credit report to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in Santa Ana CA 92701 is responsible for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just upkeep required on a solar system. Solar systems are exceptionally low maintenance without any moving parts and feature very long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. The majority of tier 1 solar equipment makers are larger and more financially stable than the solar leasing business by numerous 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 guarantees 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, using the same monitoring devices used by the renting company.
5. Just sign an agreement and the renting company does everything else.
When buying a system you also simply sign a contract and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high cost. If this is one of your primary concerns there are funding choices for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your debt to earnings ratio. And those programs enable almost any house owner to go solar no matter their credit score.
Now for the 6 major disadvantages to a solar lease in Santa Ana CA 92701 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 buying solar on your roof! You’re just providing them a guaranteed 20 year capital!
2. Now you have two utility expenses not just one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have 2 utility companies you have to pay monthly.
3. A lot of leases or PPAs carry an annual expense escalator, normally 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You will not have the ability to declare the 30 % federal tax credit and any relevant cash refunds. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally 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 delight in complimentary electrical energy from the sun for 10– 15 years depending upon 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 require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated customer would not be interested in assuming the commitments of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the expense of electricity from the energy.