Excellent video! I’ve been studying solar systems since the early 2000s. I could probably build my own but I would NEVER EVER lease! What good does it do a person who is trying to cut utility cost to pay through the nose for a system! Where’s the benefit? People: do a cost-benefit analysis before you buy. Don’t get taken to the bank…forever.
Found this video very interesting and wanted to point out the ONE reason why we DID decide to lease our solar system with a NJ-backed leasing company. Our lease payments have $0 ESCALATION COSTS! That's right. Our 20-year lease payments will be fixed and will never increase (it's in the contract specifically). For that reason, our interest was peaked. Also, we are in our 60's and won't be in the house more than about 5-10 years, and I've spoken to several realtors who have told me that the solar system (especially when the lease amount is fixed) will be an asset to selling the home because the cost of electricity here in our NJ area is going up and has gone up every year. Plus, the lease is 100% transferable, so that would be a win-win when selling our house (we got a new roof already last year too). One of the realtors said many "seniors" are getting leased solar because it's cheaper when you have no installation or maintenance costs and our State has lots of incentives for going solar (lease and buying).
Wanted to also add (as I'm re-watching this video), the installers are sending out an engineer to inspect our roof and attic space prior to the install, to make sure the roof can handle the panels. The company I'm dealing with is BBB A+ rated, has been in business since 1999, and verified by the State of NJ as a reliable provider of solar systems. I did my homework like crazy before I authorized the company to begin the process. Oh, the salesman is a personal friend so I trust him, but I still did my research and think this is a good deal for the reasons I stated above. I spoke to 5 realtors, 3 of them said they have sold many homes with leased solar, as it's a desirable commodity in my area of NJ and my home is in a very desirable neighborhood. Don't think the technology will be an issue within 10 years. Especially when the company has a 100% maintenance provision in their contract. Plus, at the end of the lease, they new owners will outright own the panels because the leasing company won't want to return to take them down.
@@Steve_in_NJThat's great and sounds like you really did your due diligence. Everything is local and everyone's situation is going to be different. It's important to do your research so you can make an informed decision and it sounds like you did that. Thanks for the feedback and post!
Its very important to go with a reputable company that has in house vendors and connections with roofers. If you go with some small company that might not be around in 10 years thats a big risk. Most homeowners are not worried about going into foreclosure and if they did they usually wouldn’t qualify for solar for reputable companies. I work for Sunrun which has reputable service, hsrdware and in house vendors that dont approve subpar roofs for install and have excellent funding options that allow new agreements during transfer of title of a house to be seamless
I sell solar in California, I do a lot of cash deals but if I have a client who wants to finance I always tell them to reach out to a local credit union if they want to finance the system. You still get the tax credit and the credit unions offer the best rates and terms for solar. Get a cash proposal and take it to a local credit union if you don’t want to come out of pocket and still own the system.
I love this! I refer a lot of our buyer clients to credit unions for mortgages as well. They have great loan programs for people to use. Thanks for the comment and advising your clients on their options.
Just had some guys from the sunergy company here in South FL. He said it would be a 25 year lease and we would own the panels after that. He also said they would insulate our attic for free and change our water heater…I almost got sucked into it but thank you so much you clarified it for me! I asked him what’s the catch and of course he didn’t have any cons to say. He actually said the opposite of what you said , that if we decided to sell the house it will increase the value of our home. I rather try to hustle to own my own panels off the bat than lease to anyone especially if they will be getting the energy back that’s not used not us. He said the most we’d get back is $100 a year PLEASE! Lol
I'm glad this video helped you! I'm in favor of solar, but only if you own the panels and not lease them. It really comes down to the math on if it makes sense. How long do you have to be in the home to break even on the cost savings versus the expense to install them.
@@Myriadaz 0 seconds ago ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cotQgHhuPGY.html 0 seconds ago taylor mccarthy WOW....60% OFFSET....MUST BE ALOT OF SHADE MAYBE WRONG DIRECTION TOO....36 PANELS...BIG COMMISSION 40% STILL WITH THE UTILITY COMPANY....YEARLY INCREASES FOR SURE..STILL ON THE GRID...1.8% RATE LOANPAL WITH ROOF $70K...PLUS...26% FED CREDIT...BACK TO LOANPAL TO KEEP THE RATE 1.8% $221 A MONTH..$19K FED CREDIT TOTAL INVESTMENT FOR THIS LUCKY COUPLE $99K....$221 PLUS 40% ON UTILITY $92 = $331 PLUS YEARY UTILITYINCREASE 5% YEARLY.....AFTER 60 DAYS LOAN PAYMENTS START $221 PLUS 40% ON UTILITY....NO NET METER CREDITS FOR MONTHS....YOU TREATED THESE PEOPLE WELL....
You confirmed exactly what I've learned. We had a leased system and the loan/bill payments ended up costing us more monthly. To wait 20 years to benefit is outrageous. We sold the home and had to deal with the complicated procedure of recontracting but were lucky. It might be better to get a loan from a bank instead so you can just buy the system and earn the credits? Maybe the energy bill passed recently will give us better options soon? Who knows?
I do think the loan options are much better than they used to be and 100% better than the leasing option. At least if you do a loan you own the system outright, it will provide value to your home, and you'll get the tax credit as well.
The Salesperson doesn't determine the quality of the roof. Also, I agree, it's better to buy(finance) than lease the Solar. I do recommend Solor. Particularly for those who plan on staying in their home for longer.
All energy is local. Some places solar makes sense. Other places the long-term cost will exceed the value of electricity they produce. Everyone needs to look at their own state, loan rate, electric company requirements, fees and minimum charges.
Daniel a couple of things please. 1. Sunnova (lease) claim the only thing a new buyer needs is a 620+ credit score. 2. Their lease increases $0.00 over the lease term of 25 yrs. - so the payment doesn't increase. 3. Something they claim is "new" - they insure their system so it has no impact on your homeowner's policy. I'm in Vero Beach, FL and looking into solar. With regard to Sunnova having to "approve" of a future buyer and the problems that may present with the buyer's lender, I haven't researched that yet. Perhaps I can check with local RE agents to see what kind if problems there have been. Thanks very much. Rick P.
Lease can do some right. Older or people with limited income who don't have tax labilities, can definitely benefit from leases. Leases are still 30 to 60% lower than most utility company's rate. Utility companies rarely upgrade their system to save people money. They have and will increase their rates substantially. Leases are not for everybody. But, still better than utility companies.
I think it depends. Especially right now with people struggling financially. Are you saying that a 0% escalating lease saving 35-55% wouldn’t make sense?
If someone does choose the lease option, having a 0% escalation is the way to go. I still prefer doing a loan over a lease so that you actually own the system and the credits for the power you create. A lease will also potentially complicate a future sale of your home and adds zero value to your property. Fundamentally I just prefer loans and owning versus leasing.
I've been shopping around for solar the last couple weeks. The biggest misconception I've seen is the 26% Federal Tax Credit. It seems like solar salesmen make it sound like you will just get the "tax credit" in the form of a refund when you do your taxes. For our system, the tax credit is around $21,000. There's no way we will have anywhere near $21,000 in Fed taxes for 2022....and it sound like the credit can be carried over to future year(s). But, the salespeople make it sound like we'll get a check that can be applied to our solar loan, and all is easy-peasy..... doesn't seem to be working like that.
Of course they do! They want to get the sale and explain just enough to get you to sign the contract. You can only apply the tax credit to what you would owe in taxes. If you don't owe anything then the tax credit is almost useless. You can use the tax credit over multiple years and it does not expire. I would make sure to talk to your accountant or CPA about your specific situation prior to signing anything rather than taking a sales persons word.
I went solar about 2 years ago. I did get the solar credit at tax time just like i was told. I got the first half of credit on the first year and the rest the following year. I received the solar tax credit plus my average refund that i get yearly. I have a few friends that went solar before me and everything worked out as far as the solar credit. One friend signed the solar contract at end of year and received the tax credit before the panels were installed.
Hello, for anyone reading this if you are looking into solar as an investment and sorry to say this is the worst investment you can get but solar is a great way to help the ecosystem but this video and RU-vidrs are not accounting for the other risk factors pointed out below. below is the risk factor in a Miami market I run into getting quotes from solar companies. This is with the 90% outset system I have been quoted. Doing the math if I pay the full amount upfront wouldn’t make sense because the return investment, I can get off the stock market or invest in other real estate projects. So, this is my concern if I get it loan out of it for 26% using the tax credit on the loan. The monthly bill is $207 for loans with tax credits. The system doesn’t pay my full FPL bill. Keep in mind my average bill is $280 per month (I know this increase is about 4.4% per year in Miami/FPL energy). This is how I see it. My roof is 3 years old. I have dimension shingles that last about 25 years. So, it can last me the rest of the time with panels. Now accounting for the liability insurance that I have gotten is estimated at $45 per month (this would increase every year by 3%). Also, Miami hasn't gotten a category 3 or higher hurricane in 12 years, and we are due two to four within the next 20 years. Also, I am accounting for the two or four liability insurance claim I need to make, and mostly they going to charge about a 20% deductible. Right now, to remove the panels and put them back electrical technicians for panels are charging $125-$175 per panel (this would go up over time). The degradation I lose per year on the panels. Let says over the 20 years there are about 25k in damages or no warranty repairs. I'm going to pay about a 20% deductible. so around 5k in deductible. That's an extra $20 per month. So, in total, the risk factor is about $271 per month, and this doesn’t cover my full FPL bill., even if you do a system set up with the full cost of my FPl bill the risk factor increase. Two other risk factors took place was selling the property. Even with the increased value of the property, buyers are not interested in buying an old use solar system and roof, so I need to get it replaced. I contact about five green certification realtors in Miami with 20+ years in the market and all said is going to be harder to sell with that use system the buyer would ask for a discount on the price of the home. The other risk factors are roof insurance warranty claims based on the few neighbors that have solar nearby and online forums. Home insurance going to blame the contractor who installs the solar panels for leaks and hurricane-related issues, and I would need to reach out to the insurance adjuster to come to help me with the claim. What I see solar as is basically a way to help the ecosystem and reduce carbon footprint but don’t expect a return with the risk factor.
I keep asking people why they would lease when it is based on your electric bill for 20+!years. Most of them have done zero research. I was thinking maybe it was me. I am buying cash, but think a home equity loan is smarter than a lease. Further, proof that it is more affordable to pay outright is these sellers all try to talk me out of doing it. I am not looking just for a savings but energy security as well. We have had frequent blackouts. Looking to get a system that allows me to be completely off grid. Little to no electricity bill helps with my plan to retire early as well.
I would be careful making or even watching a video like this. One thing that Daniel doesn't seem to understand is, this assumption that the utility companies aren't going to raise their rates exponentially in the future is actually very dangerous. Reminder this is an argument. 1:27 It's not fact. It's his speculation. Daniel is not an energy consultant and he clearly hasn't seen the state of our power grid and how utility companies are ALREADY raising their rates and have a lot since even the time of him making this video. You also made a good point, most people live in a home for 3-5 years and that is NOT nearly enough time to see a recoup for owning a system which is what you are implying is the best option. The fact of the matter is. This is not a one size fits all thing. So buying isn't the best option when you aren't trying to pull out a loan or take on any debt. 2:10 So you do realize when you buy a system that those SAME panels are going to be outdated too right? It literally makes no difference only REAL difference is you have just bought solar panels that are outdated and that YOU are responsible for maintaining and rectifying warranties and stuff when the equipment fails. A PPA (which isn't a traditional lease) gets away from all of that. You should really watch how you are framing this information because it's VERY inaccurate. What Daniel also doesn't understand is you are already forced to tie technology to your home without solar. You're not looking at the bigger picture and what is best for the customer and the homeowner. Homeowners do not want to buy a solar system that will be outdated in 5 years. But they will buy cheaper power. People who move into a house aren't worried about "technology being tied to your home" This whole video is very biased and just wrong. 3:06 it beats paying the utility company MORE than what you would have paid. 🤦♂ 3:12 You're already forced to tie a technology to your home Daniel its called transmission and distribution lines that cost WAY more per kWh to the customer. 3:25 wrong AGAIN. 3:45 wrong AGAIN Sunrun's PPA has a guaranteed transfer of service. 4:35 Only traditional solar leases work like this not a PPA or Power Purchase Agreement.
Of course a financed solar system purchase creates a lien on the house. Veterans beware, the bank may foreclose on your VA insured home loan if in their discretion they decide your debt picture has changed. If you are a disabled veteran, the federal tax credit probably won't save you a dime. On the other hand, anything on a lease is subject to negotiation. This can mean no cost up front, no lien on the property, a much lower payment, the solar company is responsible to maintain both the solar system and the roof for the life of the lease, a buy out agreement in your favor in case you decide you want to, the fact that you no longer have any lease obligation if the home is sold and the new owners can assume the lease, or not at their sole discretion. When the large solar system is installed, inspected and you have the PTO in your hand, it's a good time to negotiate on the lease you have not signed yet. If you are in California, be sure you are grandfathered in under NEM 2.0 before you do anything else.
IM very curious as to how NEM 3.0, if it passes in its current form would impact leases on solar. I think it is likely it wouldnt impact the solar leasing company in any way, but it would kill the leasee.
The most important things to consider are 1. Never Lease Solar. 2. Only BUY Solar. 3. Do thorough research of the company that you are considering . There are a lot of "Jonny- Come- Lately" Fly by night, up starts out there. Because Solar is Booming ! Most all of these lesser companies purchase all of their Solar equipment from some third party manufacturer that may also be new to the industry. And are not even based in the USA. All Solar systems are Not created equal. Beware of those who install solar as a sideline. Such as roofing companies, or uncle Jim the electrician. You may have unnecessary delays and hassles, and not save money in the long term, nor have a reliable, long term warranty. It is best to choose a company that is focused ONLY on Solar. And builds, manufactures, and installs THEIR OWN Solar Systems. A reputable, experienced Solar company can offer a full 25 year WARRANTY. And , once you are approved and your system is designed., Most average home solar systems can be installed in ONE DAY. Not dragged out over several weeks or months of delays. And better still... A quality, well established company will be able to offer ZERO DOWN , very low fixed rate in house financing. And possibly even provide differed payments for the first year of transitioning to Solar. Which is GREAT. Solar is a wise investment, and a way to take control of your power dollars, and put them to work to your financial advantage . Don't be afraid to learn about SOLAR. INFORMATION IS POWER. 🌅
So the increase usually only applies if you are leasing the solar and not all leasing companies do it. However, most of them do. It will range and you can expect an annual increase in your lease payment of 1 to 3% per year. It should be in your lease contract on how the increase will work. Their argument is the increase in the lease payment will be less than the increase in the cost of energy. I hope that helps and makes sense.
Hahahaha. I live in NH. My electric bill went from average of $260/month to zero and get about $200 at end of year from Eversource. Yes, they send me a check. It all depends on how much your local utility charges on how fast your ROI is. Solar is inherently inflation protected. Rate goes up so does the net metering rate. I bought my system not leased. Got $1k back from NH and Your car analogy is flawed. You buy a car that’s worth less every day and say that’s ok. Then you complain about solar which is like making payments and then drive for free once paid off. Solar panels last for 25 years and still produce 90% rating. The technology isn’t like 1982 tech anymore. I agree leases are problematic but solar itself is absolutely not a scam. My monthly “no payment due” makes me smile every month.
@@robertsmythe2847 I did not get a loan. My system cost $22500, got 26% back from Federal tax and $1000 from the State of NH. My net system cost was $15,650. It's a 60 month payback. This is real world numbers. What I often ask people is would you buy a car that is worth less immediately after you buy it? Of course people do that everyday. But then imagine a car that after 5 years PAYS you to have it. "bUt ThAt'S a BaD dEaL". If you live in a state with net metering and have the roof space solar is usually a smart move.
You're right, you probably need to have it first before you speculate so you can see for yourself if what's the truth and as you stated you have yours and you have proved yourself that it's not a bad idea after all.
How much sun do you have out there though? Right now 7/2022 we are roasting here in the south with temperatures over 100 for the past 15 days or so. It’s 100-109 forecast. GOOD LORD! 😆 You’d think we could generate enough electricity for the entire nation. 😁
@@mimilong3817 we actually get a ton of sun. Low air temps don't effect solar, it's simply a matter of the angle of the sun hitting the panel. The high temps are more a challenge as panel efficiency drops. Home solar makes a lot of sense for those who live in states with net metering.
It’s even worse than this video is explaining. If you go with sunrun lease. First of all forget about your rebate. Sunrun is going to raise your price by 30% in order to keep that rebate. Then they’re going to offer financing for 24 years at a fixed rate. I’m going to explain the accelerated rate. True you get a fixed rate on the lease. But you don’t get a fixed rate on the payment. Every year your payments going to go up to 2.99%. For the entire 24 years. By year 10 your payment will be so high that you will no longer be saving money and you will actually have a electricity bill and a solar bill. Electricity is going to go up over those 10 years. Now here’s another kick in the teeth. At any given time your electricity, utility company can cut the credit they are giving you. In California starting in April 1 they’re going to cut the credit from $.14 a kilowatt to only $.08 a kilowatt. All my friends and family in California are not saving more than $100 a month currently paying for their lease and sometimes paying for electricity cost. Mainly in the summer. Here’s when they kick you in the stomach. Some solar companies like sunrun lock you in to the contract for 24 years and when you sell your house. The buyer doesn’t get your contract. They have to actually start all over again, and most of the solar companies charge them even more than the seller. Example sunrun this is a actual quote $62,000. $16,000 rebate. Now I have a $46,000 lease. And the payment is going to go up to 2.99% every year. I decide to sell my house five years later. Sunsun wants the buyer. To renegotiate a new contract. The $48,000 for my lease may become $70,000 for the buyer. The buyer rejects the contract and you lose the sale on your house. For crying out loud critically think about leasing. It would be better to take a second on your home and pay it off that way. Or take a loan on your 401(k) account and pay yourself back.
Believe me, I wish I’d had solar in February of ‘21 when Texas lost power and I was forced to cook breakfast and dinner in my fireplace (secretly in my apartment). People died in Texas because of that. Lack of regulation was the reason. Texas politicians.
