Focused Energy, a leading wholesale distributor of components for grid-tie PV (solar electric) systems, announced a new program enabling PV project developers and leasing companies to assign the Federal Tax Grant to Focused Energy. This unique mechanism significantly defrays the up-front cost for commercial PV systems as well as those owned by third parties such as leasing companies.
The Federal Tax Grant reimburses the system owner for 30% of system cost. By assigning the tax grant, the system owner avoids expending funds up front for equipment, greatly enhancing the cash flow benefit of the project. The tax grant, which typically takes 90-180 days from project completion to be issued by the US Treasury, can be assigned directly to Focused Energy, securing immediate release of components for installation.
The Federal Tax Grant expires at the end of 2011, although under Safe Haven regulations, installation of some projects can be delayed until 2012.
Focused Energy CEO Paul Benson said, “This 1603 assignment program enables project owners to advance projects without the need to fully capitalize the project at the outset. This should increase the number of projects in pipeline as well as speed up their completion. We worked hard to identify the point in the finance process at which we could add the greatest value, and developed a program that truly makes it easier to develop PV projects. We’re excited to work with our installer partners in this new capacity.”
Focused Energy is also working on a leasing program for residential systems, and expects to unveil it in Q1 2012.