Future Solar Systems LLC

Company Overview
August 24, 2009, 12:52 am
Filed under: Our Business, Overview, Unique Approach

Future Solar Systems is a systems integrator that brings volume buying power and experienced installation resources along with project financing to deliver large solar electric systems for our commercial and public customers. We make it easy and affordable for everyone to have an advanced high performance solar PV system.

Future Solar Systems builds on a proven business model. The solar electric system is installed at the host organization’s site. It is financed through a combination of tax credits, rebates and investments by a third party, with no capital cost to the customer.

During the initial recovery period, the long term investor is repaid through a combination of tax credits, rebates and revenue from sales of electricity. This period will range from 8-10 years depending on the specific project.

After the recovery period, the system is converted over to ownership by the host and the free electricity produced is provided to the host along with the Renewable Energy Credits received for power produced, which we recommend that the user sell to cover the low cost of maintenance for the balance of the system’s life. The solar panels are guaranteed by the manufacturer typically for 25 years. The inverter typically is guaranteed for 10 years and is expected to be replaced once during the PV system life.

Schools and other non-profit hosts:
Schools and other non-profit organizations will receive solar generated electricity initially at a reduced and stable rate (lower than prevailing utility rates) during the recovery period, then at virtually no cost after that. This also makes a very favorable statement of “being green” and providing a significant educational opportunity.

The investor receives a favorable return on investment through a combination of rebates, tax credits, depreciation and income from electricity sales during the initial recovery period through a Purchase Power Agreement (PPA).

Future Solar Systems facilitates the process, buying panels and inverters directly from the manufacturers in large volume. The costs for solar electric panels has fallen drastically since the fall of 2008 due to a number of market factors. Future Solar utilizes experienced local installers and innovative methods to minimize installation costs, and be competitive.

The market
Future Solar Systems is targeting the educational and other non-profit markets, which typically do not have access to capital and expertise to install 100-250 KW systems. This market size is too small for the large players in the PPA market, and too large for the small companies to finance or handle the legal costs to establish and finance the PPA.

The Financial Opportunities:

Long term investment, typically ~25% of the project cost. The return is from the tax credits, depreciation and sales of electricity to the non-profit host. The LLC investor receives a much larger percentage of th4e overall benefits and an attractive ROI.

Short term project bridge investment: There is a period of time between when   Future Solar Systems buys the hardware, does the installation and then receives the Investment Tax Credit and related Solar electric rebates. This is a short term (typically 180 days or less), and covered by a highly secured loan. The project is defined, permits and credits approved prior to the investment of any funds. The investment is secured by the readily saleable standard solar panels and inverter. It is also secured by a pledge of the already approved credits from ITC and Commonwealth Solar program (MTC).  There is a separate LLC entity for each project. The risk is low due to the many combined factors.

Other Benefits:
Future solar provides all schools with an educational module for teaching solar and wind energy in the classroom.  This module includes small model working solar and wind turbines and full curriculum for 2 grade levels, and kits for students to actually make working test systems and measure their performance.

Unique financing for medium commercial projects in the 100-200KW size range.
Future solar offers a way for certain ‘For-profit’ companies to own a solar PV system and receive many of the tax and depreciation benefits, and pay for the system solely from the savings received over the first 5-6 years of ownership, after which the customer will continue to enjoy the benefit of free power and the income from the sale of their Renewable Energy Certificates (REC’s).

For more information contact:
Jim Dunn
Future Solar Systems LLC