The Data
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Clients typically have meaningful annual tax liability — federal and/or state — that they are seeking to reduce. We work with high-net-worth individuals, family offices, and business owners with active income. We also work with investors who have passive income eligible for offset. The minimum investment is structured around the level of tax benefit available to each client.

The ITC allows owners of qualified solar energy property to claim a credit directly against their federal income tax liability. Under the Inflation Reduction Act, the base ITC is 30% of the qualified cost of the asset. This is a dollar-for-dollar reduction in your tax bill — not a deduction from taxable income. If your credit exceeds your tax liability in a given year, the credit can be carried back one year or forward up to 20 years.

Like any investment, solar asset ownership carries risk. Key risk categories include: counterparty risk on the offtake agreement (the entity purchasing the electricity), operational risk (equipment performance and maintenance), regulatory risk (changes to the ITC or depreciation rules), and liquidity risk (solar assets are not publicly traded). We discuss all of these risks thoroughly during the consultation process and structure investments to mitigate each where possible.

We work directly with your CPA or tax advisor to model the exact interaction with your existing tax return. The ITC can offset federal income tax from W-2 wages, self-employment income, business income, investment income, and in some cases passive income. Depreciation offsets vary by income classification. We do not make representations without first reviewing your tax situation with your accountant.

Solar assets are long-term investments. The tax benefits are realized primarily in years one through five. The yield component — electricity payments — continues for the life of the offtake agreement, typically 10 to 20 years. We structure every investment with a defined exit mechanism, and we actively manage the exit process when the time is appropriate for each client's circumstances.

The first step is a direct consultation. We review your situation, answer your questions, and make an honest assessment of whether a Balcony Advantage strategy is appropriate for you. If it is, we move forward. If it is not, we tell you — and we have occasionally referred clients to other strategies that better matched their needs. Reach out through our contact page or by introduction from a partner advisor.