Solar Energy for Utility and Co-Ops
Learn how to enjoy both the financial benefits of solar energy and the clean power return to our community.
A key component to the financial feasibility of a solar project is the IRS investment tax credit, which is a 30% tax credit. While a great shot in the arm for cash flow in for-profit entities, it’s a missed opportunity for non-profits, such as rural electric cooperatives. Learn how Telamon Energy Solutions can provide solar energy for utility and co-ops affordably, using a tax equity flip model.
No-Hassle Power Purchase Agreements to Meet Your Solar Energy Needs
For the non-profit solar consumer, power purchase agreements (PPA) are another option. With a host of solar investors, we can build a system to the customer’s specifications and design with no capital expenditure to the customer. After doing the math and agreeing upon a PPA price and the length of the term, we can build a system and just sell the customer the energy at that price and for the negotiated length of the term. The end result is green energy that is cheaper, dedicated and available at no out of pocket expense. A true win – win scenario for all partners.
Solar Tax Equity Case Study for Utility and Co-Op Industry
Telamon Energy Solutions has a customer that is a rural electrical association and the role it plays is to broker a tax equity partner that has a tax appetite to buy and hold the solar asset for up to 5.5 years and then sell it back to the client by year six. By doing so the rural co-op client gets to utilize the tax credit and decrease the final cost of the project up to 10%.
For the tax equity partner they get a tax credit worth 30% of the cost of the array, are able to take the full depreciation of the asset, receive up to a 2.7% annuity for five years and at the end of the day they are receiving up to a 15% internal rate of return (IRR).