An Industry Built On A Tax Credit
So it is no secret the solar industry got off the ground because of the federal ITC or the "Investment Tax Credit". What is a secret is the amount of companies that will fall like the Berlin wall once it is gone. Never to return from the abyss.Ted "The Wolf" Strzelecki
Mainly the PPA and leasing companies. You know, the companies that are offering the lengthy 20 year leases? Yea those. See they won't be around after 2020. How? Why? When they install that system on your roof for zero down they take that ITC and do not give it to you the homeowner. They use that to pay for the materials, the labor, permitting, engineering, and the sales individual's commission. Well, they use all of that plus your other rebates and the amount they charge you for the utility rate.
Now that you know this, do the math. How the hell can they survive once that is gone? They can't. Hell, they can't survive now. Ever wonder why so many solar companies go under or "buy" another company. Look closely they are just changing the name after filing chapter 11. Most solar companies are not profitable. Take away the ITC they NEED to survive and it doesn't take a CPA to figure out the balance sheet of these companies is bleeding red. It is because of this I believe the lease will be gone by 2022, and will so be the majority of the solar companies.
Til then remember this from Solar Wolf. Don't lease, take back your roof and own your solar. Cheers!
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