Introduction to the solar process

Here are the next steps to help you get started!

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Step 1: Choose your Solar Business Name

Let us know your desired solar business name and the name of the owner & manager of the business.  Also the best phone number, email address, mailing address for the solar business manager.  Be sure to check your state’s business website to ensure the name you want is available. (We can turn key your entity launch prior to you originating your first solar project.)

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Step 2: Start Looking at Purchase Opporutunities

We will begin sharing projects that may be optimal for your solar business's needs through our trusted solar vendors.  


You will learn their unique value proposition and also what to expect if/ when you purchase solar assets from them. 

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Step 3: Begin tracking your Material Participation

It is important to start this process immediately. Even before your business acquires its first solar asset.  Time logging 100 hours or more in the year of new project acquisition is an important milestone that needs to be completed if you desire to use your depreciation and tax credits to offset global income.  We will turn-key this process for you via access to an easy to use time log portal.

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Step 4: Solar Deal Flow Expectations

You’ll receive project purchase opportunities each month, as they arise, along with their underwriting and economic benefits. We will be happy to review them with you and assist in your decision making process if desired.

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Step 5: Understanding Offer Sheets and CAMs

We'll teach you how to review the offer sheets you receive for each project, along with the supporting Credit Approval Memorandums (CAM’s). CAM’s include detail oriented underwriting documents for the projects available for purchase.

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Step 6: Securing and Purchasing Projects

When it comes to securing and purchasing projects, you will either fund an independent escrow account or make an initial deposit, depending on the solar vendor used.  Final distribution of funds is required when the project is completed and placed in service.

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Step 7: Sign a P1 Packet or Construction Agreement

Once you've identified a solar project you like, you'll either sign a P1 packet or a construction agreement. (This depends on the solar vendor utilized) Signing a P1 agreement reserves the project for future purchase, removing it from the open market.  Funds will be placed in escrow and released upon completion to finalize the purchase transaction.  Signing a construction agreement initiates the build out of a solar project you choose.  A 50% deposit is required to start the build and the final 50% is due upon completion. 

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Step 8: Taking Title and Closing the Transaction

When the solar project is complete and placed in service, you will be asked to sign final purchase documents, make any final pending payments and take title.  This finalizes the purchase transaction and also secures your tax benefits.  


Some vendors may title this your P2 package, other vendors your final payment due post project completion. 

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Step 9: Understanding P3 Status or the Master Lease.

Finally, P3 status is the last stage. It's when the utility company provides permission to operate (PTO) and approves energy production into the grid.  This is when cash flow begins. Remember, P3 status isn't necessary for tax benefits. 


Alternatively, some projects are not required to connect to utility..  In these instances you will have a master lease agreement and the energy payments will begin as soon as the solar assets are installed and operational.

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Step 10: Reinforcing Active Participation Requirements

Access to a turn key time log portal will help you stay on track and meet this important milestone.  If will be using the solar tax credit and depreciation against passive income or C Corp tax, it is not necessary, however if would like to offset other types of income, it required and recommended that you save it for your records. 

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Step 11: Cash Flow Distributions

Lastly, positive cash flow payments will begin quarterly after the utility company provides permission to operate (PTO). 


Alternatively, if there is no need to connect the project to utility,  your lease payments begin on the date agreed upon in the master fleet lease agreement.

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Step 12: Tax Prep & Filing

We will assist you in putting together all of the documents you need to properly file your tax returns and claim your benefits.  


We have tutorials for your CPA and are available to speak with him or her for additional guidance if needed. 

RINSE & REPEAT

Great news! Solar benefits are currently available within the Inflation Reduction act through 2032. Each year we will help you acquire new projects for your unique and powerful solar business.  We recommend you adjust your withholdings to improve liquidity throughout the year and make purchasing solar assets easier.