[businessprofessor]

I'd like to see the math on this. Solar City runs ads around here to put this on your house. I don't see how it pays out except for being subsidized.

Solar City is heavily subsidized at the federal and state levels. The combination of federal tax credits, utility payments, and forced utility purchases of excess electricity generation make the solar business lucrative. I believe that some major players (such as Google) are involved in this scam, essentially being provided essentially guaranteed rates of return of 10+ percent.

[businessprofessor]

Here is a reference about the scam.

http://www.huffingtonpost.com/2011/06/14/google-solarcity-investment-home-solar_n_876574.html

Here are some key elements of the investment scam:

Google's investment generates returns three ways. Google gets a tax credit from the federal government of 30 percent of the cost of the solar projects, in this case $84 million. It also can write off the total value of the systems in the year they are built, an accounting benefit called accelerated depreciation. The value of state and local tax credits also flow to Google.

Google investors have questioned investments that have little to do with the company's main Internet businesses and that may be potentially risky or generate lower returns. In a meeting with investors last month, Google CFO Patrick Pinchette said tax benefits of these projects can generate high returns.

[MileHi]

That is my understanding, it fails as a stand alone business. Not to mention the equipment often fails before the break-even point on the investment.

I don't have data to prove that but no one has ever showed me why I am mistaken.

Thanks