Managed Solar System

A managed solar system (MASS) is a solar system that is installed and managed by Altec Power. The energy produced by a MASS is sold to an energy user at a  price below the local cost for electricity. The party investing in a MASS owns the revenue stream produced by the MASS.  Leverage is the use of debt (borrowed money) in order to undertake an investment or project.  Companies use  leverage to finance their assets. In other words, instead of issuing stock to raise capital, companies use use borrowed money to invest in business operations. An example is when a person buys a home by paying ten percent of the cost of the home and borrowing the rest from a bank. In that scenario a person is considered to be financially leveraged 10 to 1.

Private Money Lender – A private money lender is an institution other than a bank that makes loans.  Altec Power works with a Private Money Lender to facilitate the installation of a MASS for an investor. Consider the following regarding David who is working at a job for 40 hours a week and 50 weeks per year and being paid $17.00 per hour.  David would earn $34,000 a year.  The website https://smartasset.com/taxes/income-taxes has calculators that will calculate federal taxes owed.  Taxes are comprised of multiple elements.  The following data is taken from https://smartasset.com/taxes/income-taxes and represents the taxes that David would pay in Federal Taxes.

INFO from https://smartasset.com/taxes/income-taxes  – – –  David’s Federal taxes………………………….$2,231

Altec Power works with David’s Federal Taxes to leverage David into a MASS.

Federal Renewable tax Credits – What is a tax credit? A tax credit is a dollar-for-dollar reduction in the amount of income tax David would pay. For example, utilizing a $1,000 federal tax credit reduces your federal income taxes due by $1,000.

Respective to a MASS the federal tax credit is referred to as an Investment Tax Credit, or ITC.

FOR EVERY DOLLAR INVESTED IN A MASS THE INVESTOR WILL GET AN IMMEDIATE TAX CREDIT OF $1.20 WHICH IS AN IMMEDIATE 20% RETURN ON MONEY INVESTED.  THE BEST RETURN ON A NON-SOLAR  INVESTMENTS IS CURRENTLY LESS THAN 10 %.

A PERSON CAN INVEST 1 DOLLAR TO A MILLION DOLLARS.

For example consider the taxes owed by David.

(1) David owes $2,231 in federal taxes.

(2) David decides to invest $1,900 in a MASS.

(3) Altec Power will leverage the $1,900, 4 to one into a MASS meaning that Altec Power will install a MASS with a final cost of $7,600, and provide financing for the balance beyond the initial $1,900 investment.

(4) David’s renewable energy tax credit will be $2,280.00 resulting in David paying no federal taxes.  David will have an additional $380.00 tax credit. David will be able to use the remaining $380.00 tax credit in the following year.

David can do this as often as David wants. David will never make a payment on the MASS. All payments for the loan on the MASS come from the energy sold that the MASS produces.  

Due to David investing the dollars that David would have paid in federal tax dollars into a MASS David will increase his net worth and David’s annual income without investing one dollar of David’s own after tax dollars.
David owns the MASS and will continue to earn money every year the MASS is in operation.  David will not be required to make additional investments.