Why Sell?

Gain Cash, Avoid Risks

You can get a substantial lump sum payment for your property interests. No more dealing with facility developers (that may be undercapitalized) and the other risks and complexities associated with the cash flows coming from wind energy, solar energy or energy storage assets:

Power purchase agreements – which guarantee power generated by these assets is bought at a certain price – eventually expire, leaving the facility owner and you exposed to power markets, which can be volatile
The technology behind wind turbines, solar panels and batteries continues to evolve rapidly, potentially making older models obsolete
Eventual retirement of the facility could leave you without a valuable income stream

Instead of continued exposure to these risks, you can receive a cash payment today that you can devote to whatever your family needs.

Tax Advantages

Selling your property interests may also deliver tax advantages. If you’ve had title to the property interests for a long enough period, a sale would be subject to long-term capital gains tax, which is significantly lower than the upper levels of ordinary income tax rates you’d be paying on lease payments. Additionally, a sale of your property could give you an opportunity to execute a 1031 exchange, a way to defer payment of capital gains taxes by using the proceeds to purchase another property, maximizing realized value.

Selling a Portion of Your Assets

Of course, you also have the option to gain the benefits of selling and retain the benefits of ownership, if you decide to sell a portion of your property interests or lease payments.