Why did the Sewage Board (the three majority Insider Republicans) agree to the Solar Panel Deal? Missing information. Missing arithmetic. Missing investment information. Missing mathematics. Plus it was signed with Barry Moore, the Insider Republican’s candidate for Supervisor.
The missing information in the Sewage Board’s acceptance of the corrupt Solar Panel Deal is covered up by the announcement by the PA Department of Environmental Protection, the DEP that the money saved by the use of Solar Panels is “Big”. It is not. It is not even small compared to the money spent, misspent really, by the Sewage Board.
The Sewer’s waste double the money they are paid by cutting in half the number of meetings they have in a year. That doubles their take. The people get cheated. Nothing difficult about that arithmetic. Same for the fictional saving from the solar panel deal.
First is the Carbon Saving. There is none. There is an increase in carbon that’s dumped into the atmosphere by the manufacture of the solar panels. Add in the carbon generated during the ocean voyage from China, the carbon created trucking the panels to the Sewage Board and the so called saving becomes a carbon gain meaning an increase in the carbon over the life of the solar panels. More carbon, -no carbon saving.
Next is the alleged “Big Money Saved” by the first year Solar Panel Agreement. It’s $1,200. Compared to the total Sewage operating budget for 2013, -$12 million is 12,000,000 divided by 1,300. That’s .0001 cents on the dollar. From school we know that’s one cent saved on each 100 dollars of spending. In percent it is one ten thousandths of one percent. Big? No. Small? No. Infinitesimal, -well grudgingly, infinitesimal. An infinitesimal saving.
What about the saving after the sixth year when the solar panels can be bought for “The HIGHER of one dollar or the Market Value of the Solar panels. How much would the $190,000 solar panels array be worth in say year six of the deal. Let’s estimate the best case for the Sewage Board. Let’s estimate it’s a really bad investment by Max Power and they lose 75% of the value. The purchase price to the Sewage Board would be $47,500. That’s big money but it’s a cost, not a saving. What’s the possibility that the owner of the Solar Panels will sell a $190,000 set of solar panels at a 75% loss? None. Why sell for a big loss?
Think about how bad this deal really is. It is represented to cost $190,000. Max Power gets paid $90,000 by government grant money. The cost is still $190,000. Max power must tie up $190,000 minus $90,000 or $100,000 for six years.The interest on $190,000 for six years is $3,000 a year, another $18,000 in cost to the taxpayers and Mas Power the investor so the system cost is still $118,000 in six years. Would a savvy investor sell an operating solar panel system that originally cost $190,000 for less than it’s value after only six years? No and there is no reason to believe Max Power would agree.
The deal is not as it was represented to the Sewer Board. Best case for Max Power is if the true original cost to Max Power was not $190,000 but say $60,000. In year one the profit would be $60,000 minus the $90,000 in grant money for a profit of 30%. Plus the tax saving due to depreciation of $66,500 based not on the actual cost but on a marked up cost that clips even more tax money from the American Taxpayers.
In addition the system generates electricity that is sold to PECO for more income. All of the electricity from the Solar Panels is guaranteed to be bought by the Sewage Board.
Add $66,500 to the cost of $190,000 plus $18,000 and the system cost $274,500. The bottom line is there is no saving at all to the people. The cost of the system, interest and taxes forgiven must be paid. That’s what the contract guarantees. Paid by Whom? Taxpayers.
There is no saving. The real purpose of the Solar Panels is not to make electricity but to make money while saying it does something it does not do, i.e., save money. In the end it neither saves money nor carbon. The swindle is a con by a fiction. The sad truth is it’s aided and abetted by the DEP, the IRS, Max Power and the Sewage board. The final problem is many people believe so much in Solar Power that they do not care, they do not investigate and they are the ones responsible for the swindle of the rest of us.