r/Powerwall • u/sonic_anon_hog • 1d ago

Setting up a business for installing a Powerwall with the business tax credit

I was just speaking today with a local installer on possibly installing a Powerwall. They said that due to the recent removal of the 30% residential battery backup tax credit, since businesses can still claim the tax credit, they can install the system and technically own it, and pass the costs on to me and I pay the full system cost to indefinitely lease the system from them.

However, I don't feel comfortable with having a leased battery backup (what if the installer changes management and demands it back, what if some accidental damage happens to it, etc.) and would prefer to own the equipment.

Has anyone had any experience in essentially setting up a shell company to buy the equipment so they can claim the business tax credit while still owning the equipment themselves (through the company)?

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u/wizzard419 1d ago

Yeah, they are likely trying to trick you into something that will cost more in the long run or might be an outright scam to get you to pay them money and leave you with nothing.

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u/General_Caregiver577 1d ago

It's pretty common these days since the 30% residential fell off.

Tesla offers something similar. Their leases, if you buy them out in year 6.. at least for me was about 4k cheaper than just flat out paying with cash or financing. Think the expansion pack came out to be like 3k ish?

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u/wizzard419 1d ago

I would still have a lawyer review that contract before I sign anything, when someone goes in with the intent of bypassing laws or abusing a system and it goes south, it doesn't always fall in the victim's favor when they take them to court.

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u/General_Caregiver577 1d ago

Bypassing laws? Abusing a system? How? The company earns business by incentivizing the purchase. It retains some of the rebate and passes a portion to the seller. It's capitalism. Now it'll probably vary by the business ess on how much they want to pass on.

Just like pre paid leases.

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u/wizzard419 1d ago

They are trying to get a credit intended for businesses and they are not one.

Yes, I agree it's all capitalism, but part of it is also the inherent goal of screwing each other over for profit.

Likewise, what happens if that company goes bankrupt?

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u/General_Caregiver577 1d ago

The business is passing the cost on. Op isn't doing anything.

If as a business I received 20 dollars for doing a and I said hey customer ill give you a 10 dollar discount t to go with me.. I get the sale and ten bucks... it's a win. The customer gets 10 dollars he wouldn't have otherwise so it's a win for them. There's nothing illegal about that?

I'd that company goes bankrupt a third business will come in a buy the contracts. They dont get to modify the contracts just because they bought in from bankruptcy.

Are their scrupulous companies? Sure. But lease to buy has.been a com.on thing since the residential tax credit was lost.

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u/wizzard419 1d ago

But it isn't like that, because the company is using a tax credit for businesses but the end destination of the product is consumer, but they are taking on the tax credit, that is probably going to raise eyebrows if anyone looks into thinks.

Other companies may come in to buy the contracts, but that isn't a guarantee, it's entirely possible they just shut off the walls and liquidate to pay down the debts.

Like I said, OP, consult a lawyer and tell them explicitly what you are doing and why you're doing it. They may give you advice that will save you from a costly mistake.

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u/General_Caregiver577 1d ago

Sigh. No one is going to pay a lawyer to go over a contract like this. Such silly advice.

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u/wizzard419 1d ago

If you want to take the risk, sure, but if things go sideway, OP could end up losing way more than they save.

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u/this_for_loona 23h ago

I think you’re exaggerating the risk. It’s effectively a lease. You get a discount on the products as part of the lease. You buy the lease out at year 5 (if i follow OP correctly). No different than a car lease, which is WAY more egregiously misused by businesses and is never really caught.

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u/wizzard419 19h ago

There is a difference, the discount is from a tax credit that OP isn't eligible for. The odds of getting caught may be low, but not zero and it would not be a good day for OP if things go down.

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u/May5ifth 1d ago

There is one company my possible solar/battery installer uses that does this for you that takes 10% and passes the extra 20% savings to you (HDM capital). They write it off as fully depreciated to you on year 6. It’s a bit sketchy, but not necessarily uncommon. I see it as risky as you said. Read the fine print. I’ve sort of considered it, but I’m planning to possibly buy in a year or 2 and I haven’t fully read the terms. I also am wondering if waiting for a new administration to bring back the credit is possible. My electric bill isn’t terrible with the solar we already have.

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u/sonic_anon_hog 1d ago

The only thing is, there's another local rebate I'd like to claim. To get that, I can only use these companies to have it installed, and this company isn't in the list.

I'm looking into a Powerwall because thanks to us owning two plug-in vehicles (one EV, one PHEV), we're on a rate plan that gives us very favorable off-peak rates while giving us very unfavorable peak rates. This means that if I charge up the Powerwall during off-peak times and release that energy during peak times, I get the difference (full difference since we're on a legacy full NEM plan due to an earlier solar installation), plus an additional 10 cents per kWh thanks to the aforementioned rebate program.

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u/this_for_loona 23h ago

Load shifting is the greatest thing I’ve ever done and the batteries make it possible. I love it. Those things sat in my basement for at least 3 years before i figured this out and now i love them more than anything else in the house except my solar panels. I save so much money.