Government programs return ‘almost all’ of Big Solar investments
Solar lobby is the ‘Anti-Pinocchio’ – never a penalty for telling whoppers!
Solar energy investors with sufficient tax liability may combine the state tax credit, the federal tax credit and the bonus accelerated depreciation schedule to return almost all of their investment within six (6) years. They can also receive 57.8 percent of their investment back through tax credits and depreciation deductions within 12 months of placing into service.
For an investor subject to a 35 percent federal tax rate and a 5 percent state tax rate, the following demonstrates how much of the solar energy investment is returned each year through tax incentives.
The facts surrounding this matter are quite clear. In six years, investors will collect Federal Tax Credits of 30 percent, all in the first year. Then they will qualify for 7 percent State Tax Credits for the first five years. Federal depreciation will vary over the six years but will total 30 percent during that period.
State depreciation will total 5 percent with the cumulative sum, for all, at 100 percent
It is no wonder special interests act as if any change in their tax credits and Renewable Energy Portfolio Standards purchase mandates would devastate them. They are not self-sustaining at all.
Despite decades of promises to the contrary, they have no plans to be self-supporting.
Solar is an industry whose business model is proudly based, not on capturing customer loyalty and winning investor banking on solar being a competitive industry in its own right, but on capturing legislators’ favors. Their long-term goal is to remain on perpetual government life support.
The solar lobby is like anti-Pinocchio: It gets no penalty for telling whoppers and it has no intention at all of ever being a real boy.
In order to better understand the scam, consider this:
If you have a business and set up a “solar farm,” the local energy utility is required by law to purchase any of your unused solar energy. So as a smart business person, all you have to do is sell all the high priced solar energy to Duke Power (or some other utility) and then turn around and run your business on the cheaper grid power. That way, you get all your energy for free, if you work the inputs and outputs correctly. Then, residential consumers see their rates go thru the roof while they pay for your free energy. This is a sweetheart deal of the century.