Solar Subsidies Scam Taxpayers And Homeowners

Investors.com ^ | January 134, 2015 | Stephen Moore & Joel Griffith

[jazusamo]

Solar panels are being installed on the roofs of homes and businesses all across America at a record pace. The fad is the latest way for families to "go green" — the energy equivalent of blue recycling bins.

The Solar Energy Industries Association likes to tout the industry's "amazing success" — but it's holding a "Shout Out For Solar" social media event Friday as it sees an "uncertain future."

That's because its continued success depends on a cascade of government subsidies, including a 30% federal investment credit that expires at the end of 2016.

Guess what? Taxpayers are paying for it — and through the metaphorical roof.

Thanks to the slew of solar industry subsidies, homeowners can effectively contract with solar leasing firms that will install those panels for free. But they often get gouged later, as do taxpayers in one of the great corporate welfare scams of modern times.

Shady Solar Leasing Firms?

Congress is investigating if the industry is ensnaring homeowners in green energy "teaser" loans.

Rep. Paul Gosar, R-Ariz., and a member of the Committee on Oversight and Government Reform, plus 11 House colleagues fired off a letter last month to the Federal Trade Commission asking if the booming solar leasing market — a "new industry with a limited track record and little regulatory oversight — poses a "considerable risk" to homeowners.

Some leasing companies "sold large numbers of subprime mortgages to unsuspecting homeowners in the runup to the subprime mortgage crisis," the investigators have found.

California and Louisiana homeowners have filed class-action lawsuits vs. solar leasing companies alleging fraudulent marketing campaigns that don't warn customers of true costs and risks.

[jazusamo]

Long term scams made possible by government (taxpayer) subsidies.

[familyop]

"Solar panels are being installed on the roofs of homes and businesses all across America at a record pace...Guess what? Taxpayers are paying for it — and through the metaphorical roof."

Not all. I paid in full for my little system and installed it myself. Many others have done the same without getting the tax credits of the establishment. Stephen & Joel should limit their accusations to their own kind and learn the use of quantifiers. So much class, so little literacy and honesty.

[rockinqsranch]

We always thought of solar as over rated, and therefore a con like alleged global warming. We never have invested, nor will.

[jazusamo]

Good for you but this article addresses solar subsidies through scamming companies and I believe they’re correct.

[jazusamo]

Amen and it’s not something new, this has been going on for 30 or so years.

[Lurkina.n.Learnin]

Where’s Lizzy Warren?

[palmer]

Location? Selling to the grid? Getting full retail? If you’re in Florida or the SW part of the country or some sunny intermountain locations, then you are probably a net asset to the rest of us. Elsewhere, we are probably overpaying for your electricity. For example if you are here in Virginia where net metering is the law, we pay you full retail price for your power instead of wholesale. Why should we pay full retail for power that is unreliable instead of wholesale price for reliable power. My power company exec said that very thing himself. He is trying to get a good deal for us, his customers, but his hands are tied by the net metering law.

[Eric in the Ozarks]

Counting all the residential solar panels put up in the past few years, what percentage of the owners applied and were awarded these tax credits ?

Would 90 percent be close to accurate ?

[jazusamo]

Please bump the Freepathon or click above to donate or become a monthly donor!

[familyop]

The article does raise an interesting point without covering it. How much income would a homeowner need to receive from a government-connected business or local, state or federal government office or pension to get “the prized 30% tax credit” from a $120,000 installation of a solar system?

[driftdiver]

I spoke with one of those companies. They wanted 80 grand for a small system. They also said the rebates were almost guaranteed.

[WildHighlander57]

My neighbor had 24 solar panels put on his roof.

His initial cost was 20k, after rebates etc, his outlay was about 9k.

It will run the essentials; his house is about 3000 sq ft with gas heat, water heater n stove.

[familyop]

"Selling to the grid?"

No. I'm also not invested in any local utility, as so many government employees are.

"Getting full retail?"

What does that mean? I paid retail for every component and don't receive money from anyone for the install.

"If you’re in Florida or the SW part of the country or some sunny intermountain locations, then you are probably a net asset to the rest of us."

The nearest power lines here are several miles away. There's no meter. There are nearly no residents. Maintenance would also be extremely high for the company with yearly winter wind gusts up to 110 mph and the ice dunes that result.

On those who are getting the tax credits, see comment #10. I disagree with the subsidies, tax credits and rebates, but I also disagree with sponsored propaganda that defames everyone who has a PV solar system. Many of us buy and install without money from government.

I brought this up here, because NIMBYs come from the east (some by way of CA). They've regulated property in the area to uselessness (extreme impact fees, mandatory engineering and permitting costs) and have made it known that, among other things, they won't tolerate any wind turbine within sight of any road. That's communism, whether such abuse is facilitated through local, state or federal government. They have no moral or legitimate control over properties except for the properties that their banks have paid for. What their neighbors do on their own properties is not the business of any NIMBY.

[familyop]

"Counting all the residential solar panels put up in the past few years, what percentage of the owners applied and were awarded these tax credits ?

Would 90 percent be close to accurate ?"

On those receiving tax credits, see comment #10. Those who cannot receive tax credits should begin study of PV solar energy (including safety and the National Electrical Code) and install systems with currently low prices on components.

We're seeing a shrinking, fake economy of recirculating debt. The jobs won't be coming back. The answer for each willing person is to become as self-sufficient as possible and learn to make something of good use.

We Are Entering An Era Of Shattered Illusions
http://www.freerepublic.com/focus/f-news/3246427/posts

[Organic Panic]

So what's the problem?

[familyop]

80 grand for a small system is outrageous. They're scalping for about 80% beyond real market costs, and that's not including what they get from various levels of government. Over 40 years ago, a relatively few people decided that most technical work would be done in a certain few communist slave countries, and that services would be relegated to western countries to enslave people here.







Meanwhile, they've regulated against technical trades being done here in order to cement the monopolies.

[Mamzelle]

I don't understand the gripe in this article. Frankly, I do not regard a tax credit opportunity as a "subsidy"--particularly for individuals. Just because a neighbor gets a break on *his* taxes does not mean you pay *more* taxes--

There is a lot to be said for solar panels, depending on how you look at it. You get your electricity from your own system…and do not need to earn the money to buy electricity, which means every dollar you generate in power is really a dollar plus thirty cents in taxes you do not have to pay.

And, what would you spend that 20-30K on? Exxon stock, so you can get dividends on which you have to pay regular income tax?

There are a lot of tax breaks that people do not consider about solar power, which have little to do with tax credits.

There is also a movement out there on the part of utility companies which do not like having solar powered individuals on the grid…and they try to gin up resentment among the regular customers against those who have solar panels.

[ElkGroveDan]

it’s not something new, this has been going on for 30 or so years.

In previous generations it was aluminum siding, and before that it was magic elixir. Any deal that is too good to pass up should be passed up.

[Taxman]

Please describe your system for us. I’m interested, if it is affordable and if it really works.

[familyop]

"There is also a movement out there on the part of utility companies which do not like having solar powered individuals on the grid…and they try to gin up resentment among the regular customers against those who have solar panels."

That's true. Those companies are each government-linked or owned by government and would like to keep all residents under their economic control. Good point about the tax credits, too. Battery storage is also a good idea for those who can do it.

In my opinion, Concorde has some of the most cost-effective AGM batteries, and Crown, some of the most cost-effective regular flooded lead-acid batteries for those who can make sure that the batteries are adequately contained and vented (thicker plates for longer battery life, see Crown "safety first" file for solar system charge controller settings in the table under "Renewable Energy Charging Systems"). There are more expensive brands that are also great, but they're...more expensive.