25kW Solar System for Sale
We are in the very early stages of a 25.1 kW project on the roof of a non-profit organization in Placerville, California. We can probably finish construction before November if the financing is in place.
The system will be sold with a Lease, where the building organization leases the system from you and uses the electricity that the system generates. This effectively reduces the work-load on you, the investor, in maintenance and operation.
Some notes about the cash-flow:
- The investor will own the solar project and lease the project to the host for 10 years.
- The investor takes all ITC and accelerated depreciation plus the lease payments.
- After 10 years, the host has an option to purchase at fair market value, with payments spread over two years.
- If the host does not use the option to purchase, the lease can continue on a month-to-month basis.
- The host has the responsibility to keep the equipment in fully working condition.
- The host owns the building and has no mortgage.
- Assuming the host take the option to purchase, the investor can realize an IRR over 12 years of 12% (after tax). Legal and accounting fees were not factored in as it depends on your investment structure.