Battery back-up determining

2»

Comments

  • YehoshuaAgapaoYehoshuaAgapao Solar Expert Posts: 280 ✭✭
    Re: Battery back-up determining
    My CPA says I get a credit for the lease because the IRS asks "what did you pay toward the installation of a qualified solar..." and that the contractor is also equally entitled to double dip this same question.

    When I went through the lease, you signed over your tax credits and incentives to the leasing company.
  • Blackcherry04Blackcherry04 Solar Expert Posts: 2,490 ✭✭✭
    Re: Battery back-up determining

    I don't think it takes a CPA to know the IRS would not allow the same deduction to two different entities. You might want to re-think that one.
  • benatwhodotnetbenatwhodotnet Registered Users Posts: 16
    Re: Battery back-up determining

    The contractor has closed their offices and the AZ Registrar of Contractors has revoked their license. They are defaulting on the terms of the lease, the part where they are responsible for the maintenance for 20 years. If they are attempting to claim a solar credit, amortized over 20 years as they would be required to do, then my refund will be honored first and theirs will be denied. Also, the lease terms specified that I should file for, and give them, the refund... not happening.
    I don't think it takes a CPA to know the IRS would not allow the same deduction to two different entities. You might want to re-think that one.
  • YehoshuaAgapaoYehoshuaAgapao Solar Expert Posts: 280 ✭✭
    Re: Battery back-up determining
    The contractor has closed their offices and the AZ Registrar of Contractors has revoked their license. They are defaulting on the terms of the lease, the part where they are responsible for the maintenance for 20 years. If they are attempting to claim a solar credit, amortized over 20 years as they would be required to do, then my refund will be honored first and theirs will be denied. Also, the lease terms specified that I should file for, and give them, the refund... not happening.

    Good thing about a folded lease company, if they really closed and don't get bought-out - you get to keep your system!

    Many lease companies will abandon systems from expired leases rather than pay for the cost of removing 15-20 year old solar panels and racking and inverter halfway or all the way through its planned service life (and patching your roof so it don't leak as any leaks will ruin your trusses which could lead to a roof collapse). I've been told this by the SolarCity sales person. Just neither renew the lease nor tell them to remove the system, odds are favorable that they will abandon the system. Given this, a folded company is even more likely meaning that you have a free system. If they are still in business in another state and you weren't prepaid, this probably would mean they would still sending bills for montly payemnts. Actually you probably may have to keep making payments even if they folded nationwide. With SolarCity, if you pay monthly and not up-front, the lease payment is actually paid to them up front - you are paying down a loan from a bank, but the loan is proxied through SolarCity - SolarCity packaged the loan and sold it as a CDO - collaterized debt obligation - a derivative instrument - to a bank (Mortgage Backed Securities that the FED is printing dollars to buy are CDOs that comprised of real estate mortgages).
  • VicVic Solar Expert Posts: 2,970 ✭✭✭✭
    Re: Battery back-up determining

    Well, in my opinion, any Leased system is someone else's ASSET, until paid for or paid off. Doubt that there is an available free-ride.

    AND, Yeho ......... pao, It is just my opinion, but, your very frequent POLITICAL diatribe/statements have nothing really to do with this Topic, Thread or any others on this Forum.

    I have no special standing here, but could you please just keep to the subject and cut the political opinion. PLEASE, THANKS! Have a nice Fourth, Vic
    Off Grid - Two systems -- 4 SW+ 5548 Inverters, Surrette 4KS25 1280 AH [email protected], 11.1 KW STC PV, 4X MidNite Classic 150 w/ WBjrs, Beta KID on S-530s, MX-60s, MN Bkrs/Boxes.  25 KVA Polyphase Kubota diesel,  Honda Eu6500isa,  Eu3000is-es, Eu2000,  Eu1000 gensets.  Thanks Wind-Sun for this great Forum.
  • benatwhodotnetbenatwhodotnet Registered Users Posts: 16
    Re: Battery back-up determining

    I wish it was that kind of lease. This was a prepaid lease... all up front from me. 10% down and 90% on completion of install. My only recourse is that they won't get the tax credit. I can apply to the ROC bond recovery fund for actual costs of repairs, but not for loss of the 20 year warranty.

    The lease says they can remove the system for default... but only if they're still around and have not defaulted themselves. If some new owner wants the system then they must cover the warranty provisions in the lease too.
    Good thing about a folded lease company, if they really closed and don't get bought-out - you get to keep your system!

    Many lease companies will abandon systems from expired leases rather than pay for the cost of removing 15-20 year old solar panels and racking and inverter halfway or all the way through its planned service life (and patching your roof so it don't leak as any leaks will ruin your trusses which could lead to a roof collapse). I've been told this by the SolarCity sales person. Just neither renew the lease nor tell them to remove the system, odds are favorable that they will abandon the system. Given this, a folded company is even more likely meaning that you have a free system. If they are still in business in another state and you weren't prepaid, this probably would mean they would still sending bills for montly payemnts. Actually you probably may have to keep making payments even if they folded nationwide. With SolarCity, if you pay monthly and not up-front, the lease payment is actually paid to them up front - you are paying down a loan from a bank, but the loan is proxied through SolarCity - SolarCity packaged the loan and sold it as a CDO - collaterized debt obligation - a derivative instrument - to a bank (Mortgage Backed Securities that the FED is printing dollars to buy are CDOs that comprised of real estate mortgages).
  • solar_davesolar_dave Solar Expert Posts: 2,343 ✭✭✭✭
    Re: Battery back-up determining
    I wish it was that kind of lease. This was a prepaid lease... all up front from me. 10% down and 90% on completion of install. My only recourse is that they won't get the tax credit. I can apply to the ROC bond recovery fund for actual costs of repairs, but not for loss of the 20 year warranty.

    The lease says they can remove the system for default... but only if they're still around and have not defaulted themselves. If some new owner wants the system then they must cover the warranty provisions in the lease too.

    One thing you might have to look at is that the assets are usually acquired by some other company from the bankruptcy sale. The property being own by a bankrupt company usually ends up in someone else hands.
  • VicVic Solar Expert Posts: 2,970 ✭✭✭✭
    Re: Battery back-up determining
    solar_dave wrote: »
    One thing you might have to look at is that the assets are usually acquired by some other company from the bankruptcy sale. The property being own by a bankrupt company usually ends up in someone else hands.

    Yea, Dave, that was exactly what I was saying. Assets are just that, assets. SOMEONE will acquire them, for the value that they represent and the revenue stream. You can bet that for a leased system from a now bankrupt company there will be someone demanding payments unless the system was purchased and paid for before the bankruptcy.

    AND, it the case of this system of Ben's, appears that he has paid for it and owns it, but is out the warranty coverage/maintenance and the credits may take some wrangling. At least as I interpret it. Vic
    Off Grid - Two systems -- 4 SW+ 5548 Inverters, Surrette 4KS25 1280 AH [email protected], 11.1 KW STC PV, 4X MidNite Classic 150 w/ WBjrs, Beta KID on S-530s, MX-60s, MN Bkrs/Boxes.  25 KVA Polyphase Kubota diesel,  Honda Eu6500isa,  Eu3000is-es, Eu2000,  Eu1000 gensets.  Thanks Wind-Sun for this great Forum.
Sign In or Register to comment.