Buy Solar: PPA Can't Compete

Dear Business Leader,

I had a client ask me which is better: buying a solar energy system or entering into a Power Purchase Agreement (PPA). I told them, plain and simple,

"Buy unless you're brain dead."

This isn't just hyperbole; it's the cold, hard truth. Especially for those of you in REAP areas and energy communities, the financial benefits are overwhelming.

Let's break this down.

Why Buying Beats PPA Every Time

For businesses in REAP (Rural Energy for America Program) areas, which is most of the geographic USA and designated energy communities, the system is essentially free.

Yes, you heard me right. Whatever you spend on a solar energy system, you'll get back in government grants and other benefits.

1. Federal Tax Credits: The Solar Investment Tax Credit (ITC) offers a 30% tax credit on the cost of the system. For a $100,000 system, that’s $30,000 off your tax bill right there.
2. Accelerated Depreciation: The Modified Accelerated Cost Recovery System (MACRS) allows you to depreciate 85% of the system's cost over five years, providing substantial tax savings. Moreover, under TCJA your depreciation yields even greater benefits.
3. REAP Grant: If you're in a REAP area, you can get up to 50% of the cost of your solar system covered by grants. That’s right, half of your investment is covered by the government just in the form of this grant. Then you STACK the other wonderful benefits.
4. Energy Community Bonus: If you're in an energy community, you get an additional 10% tax credit on top of the federal ITC. This means even more savings and incentives.
5. State and Local Incentives: Many states offer additional incentives, rebates, and tax credits, further reducing the net cost of your solar investment.

With these incentives, the financial case for buying a solar system becomes overwhelmingly favorable. The system practically pays for itself, allowing you to enjoy long-term savings and energy independence.

The PPA

The investor paying for the system and selling you the PPA? They're getting a 100% ROI. Here’s how:

1. No Upfront Costs for You: Sure, you pay nothing upfront. But you're locked into a long-term contract (20-25 years) with escalating rates.
2. Fixed Payments but Variable Savings: You pay a fixed rate per kWh, but if your energy needs change or the system underperforms, you're still paying the same. Meanwhile, the investor is raking in profits from your payments.
3. No Ownership Benefits: You miss out on tax credits, depreciation, and incentives. All those financial goodies go straight to the investor’s pocket.
4. Limited Flexibility: PPAs often come with restrictions on modifications to your property that could impact the system's performance. Plus, if you sell your property, the new owner must take over the PPA, which can complicate sales.

The Real Winner

So, let's be clear: buying a solar energy system is the smart move. Not only do you get the full financial benefits, but you also gain independence and control over your energy future.

• Higher Lifetime Savings: Once your system is paid off, your energy is practically free. Compare that to a PPA, where you're always paying someone else for your power.
• Increased Property Value: Solar installations increase property value, whereas leased systems can actually lower it.
• Full Control and Flexibility: You own the system, you maintain it, and you decide if and when to upgrade or expand.

For businesses, especially those in REAP areas and energy communities, the case is closed. Buying a solar system is not just better; it’s a no-brainer.

The financial incentives, long-term savings, and added control make it the superior choice by a mile. So, unless you're looking to throw money away and miss out on massive benefits, buy your solar system. It's that simple.

Be an Investor: 100% ROI Opportunity

Some clients I am talking to are considering not only buying a solar system but also becoming investors in PPAs. Despite the clear advantages of owning a solar system, many businesses still make the unwise choice of opting for a PPA.

This is good news if you’re looking to invest.

I have clients ready to secure PPAs, and we can show you a 100% ROI on your initial investment just from government benefits. You pay to build a system and then get your money back in year one. Then, you’ll receive 25 years of monthly payments, providing a steady income stream.

Alternatively, you can sell the PPA contract after getting all your money back from government benefits, resulting in a windfall profit.

If you’re interested in seizing this lucrative opportunity, DM me. Let’s discuss how you can capitalize on this booming market. Investing in PPAs is a surefire way to ensure a strong financial return while contributing to the growth of renewable energy.

The Winning Strategy: Buy and Invest

Buying a solar system for your business is a no-brainer with all the government grants and incentives available. Additionally, investing in PPAs offers a 100% ROI and a steady stream of income from monthly payments. Don’t miss out on these lucrative opportunities—DM me now to discuss how you can benefit from both owning and investing in solar energy.

Stay well. Swim Strong!

Warmly.

David

P.S. Do you know businesses that want a free solar energy system or investors looking for a 100% ROI? Refer them to me and earn a huge royalty for your referrals. Let's grow this solar revolution together—send me your referrals today!

? Published by: David Vogel, in Wolfeboro, New Hampshire

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