pURCHASE BENEFITS

investment Tax Credit:

30% to 60% solar investment Tax Credit per solar project

Bonus Depreciation:

6 yr depreciation schedule with 60% to 100% Bonus federal depreciation in yr 1

Positive Cash Flow:

Cash Flow for up to 35 years

Prior Year Tax refunds:

Available retroactively for up to 3 years

Congressionally Approved:

Inflation Reduction Act Ratified in 2022 and will carry through 2032

Positive Environmental Impact:

Renewable energy reducing reliance on fossil fuels and lowering greenhouse gas emissions

  • The solar story

  • how does it work?

  • why does it work?

  • Economic benefits

  • IRS Compliance

The Solar Story:

Challenge: 

Frustrated By Unexpected Blackouts And a Consistent 6-12% Yearly Increase In Electricity Expenses From The Local Utility Company, A Business Owner Seeks A Better Alternative.  Cleaner, More Consistent And Lower Cost Energy Is Avaialable Through Solar, However Seems Out Of Reach Due To The Cost Of Solar Panel Installation.

Solution: 

The Business owner is Offered A Game-Changing opportunity:  more Reliable Power, immediate and Substantial Utility Savings with a gauranteed annual increase in cost of only 2.9%.  what is even better is that this solution is available at ZERO cost to the building/business owner! 

How you benefit: 

You Can Purchase the solar panels for the business owner and receive the following benefits:  (1)  federal tax credits, (2) depreciation and (3) Cash Flow.  with a zero to low effort, turn-key solar business, you can use the tax credits and depreciation to offset your current income.  (example:  w-2 income, business profits, passive income, portfolio income, long term and short term capital gain income etc, etc...) 

Perhaps Even More Interesting, You Can Use The Tax Credits to Recieve A Refund On Federal Tax Paid Up To 3 Years In The Past! 

Frequently Asked Questions

what is Required of me?

- Part 1 -

  • Do I need to understand Solar?

  • how much time will i spend in the business?

  • what is ACTIVE material participation?

  • how will i operate my solar business?

Only as much as you desire. Our turn-key process allows you to choose solar projects available all over the United States and utilize a pre-designated operations and maintenance provider to manage your solar assets. They are experts in the solar field and will handle ALL of the day to day.

what is Required of me?

- Part 2 -

  • Is there a Multi-Year Obligation?

  • How do I get Started?

  • What is a Master Purchase and Sales Agreement?

  • Why do I need to sign a Master Sales and Purchase Agreement?

  • How do I Exit the Business?

No. You choose when to purchase solar assets and how much. We recommend only purchasing the amount of solar you need to effectively reduce your tax liability annually.


Also, material participation is ONLY required in years you purchase NEW solar projects. It is NOT required in years you do not purchase new solar assets.

Important Technical Jargon To Know

- Part 1 -

  • What is a Power Purchase Agreement?

  • What is an ITC Tax Credit?

  •  What is Depreciation?

  •  What is the 5.5 Yr MACRS depreciation schedule?

A Power Purchase Agreement is a contract between a producer of electricity (You, the solar business owner) and a customer (A Building owner that desires more cost efficient electricity), stipulating terms for the sale and purchase of electricity over a predetermined period, typically at specified rates and quantities.

Important Technical Jargon To Know

- Part 2 -

  • What is a P1 Purchase agreement?

  • What is a P2 Purchase agreement?

  •  What is a P3 Purchase agreement?

A P1 Purchase Agreement, when signed, reserves a solar project for future purchase, taking it off the open market. It does not obligate you to purchase the solar project.

what are The Associated Costs and Savings?

- Part 1 -

  • How much Solar do I need to Purchase Annually?

  • How much Tax will I save by Purchasing Solar?

  • Are Prior Year Tax Refunds Available with Solar Tax Credits?

  • What type of income will solar benefits offset?

As much or as little as you desire, however, we will run an analysis to determine the optimal purchase amount for your specific needs. Your purchase amount is dependent on what your current year tax liability will be and how much tax refund you would like to retrieve from prior years tax paid.

what are The Associated Costs and Savings?

- Part 2-

  • How does ITC Tax Credit & Depreciation Reduce my tax liability?

  • How, When and Who do I pay for my Solar Projects?

  • How much cash flow will I receive?

  • What is my annual return on investment?

$1 dollar of tax credit will fully offset $1 federal tax liability.
Also note, there is a limit to the amount of Investment Tax Credit (ITC) that can be applied against your current year federal tax due. This number ranges from 60% to 70% of your total federal tax liability depending on a few variables.

Any unused tax credit in the year of acquisition, may be carried forward up to 22 years OR carried backward for a refund on federal taxes paid up to 3 years in the past. (Creating a very POWERFUL opportunity!)


Every $1 of depreciation will offset $1 of income you are taxed on, both at the federal level and the state level.


Example: If you have $100,000 of depreciation and $500,000 of adjusted gross income, after you apply the $100,000 of depreciation from solar, you will only be taxed on $400,000 of income.

what are my Possible Liabilities?

- Part 1-

  • Am I responsible for the loan?

  • What happens if the energy payments are not made?

  • Can my loan be called due?

  • Will the loan hurt my ability to acquire lending elsewhere?

Accepting financing is not required. It is completely fine for purchasers to pay 100% cash for the projects acquired.


If you do accept seller financing, the energy payment made by the building owner will cover your annual operations & maintenance fees, your loan payment and will also provide you with positive cash flow quarterly.


It is recommended that you personally guarantee the financing received however, this is only for your first solar purchase. Loans received on the 2nd, 3rd, 4th etc projects you purchase DO NOT need a personal guarantee because they are cross collateralized by the equity in the previous solar asset purchased.


Specific to your financing, it is important to be in an “at risk” position in the eyes of the IRS to benefit from the additional value the tax credit and depreciation received at the higher, leveraged purchase price.

what are my Possible Liabilities?

- Part 2-

  • What happens if the panels are damaged or destroyed?

  • Are there warranties on the panels?

  • What if the building occupant goes out of business?

  • What if my Operations & Maintenance provider goes out of business?

One of the three layers of insurance that are included in your annual O&M fees will be utilized to cover the cost.

Miscellaneous

  • Do I directly own the panels?

  • Can I sell my solar panels?

  • Can I change my operations and maintenance provider?

  • Will I receive phone calls from the building owners?

Yes

What our Clients Have to Say...



Our power purchase agreeement lowered electricity costs for our business by more than 30%.

daniel j. - fresno


We are elated!  Our church finally qualifies  for a full support project.

helen S. - Anaheim