Mass Megawatts Wind Power Inc (MMMW)

[Solarman]

Mass Megawatts $MMMW High-Return, Low-Risk Investment into Solar Tracking Systems for solar projects (From Mass Megawatts $MMMW sales literature)

Technological advancements in solar-power development, led by Mass Megawatts Wind Power (OTCBB:MMMW), combined with substantial government incentives have created an unprecedented opportunity for qualified investors. With a Mass Megawatts Solar Tracking System (STS), investors and developers can realize a substantial rate of return through a guaranteed, and subsidized, revenue stream from the generation of clean, solar-power.

• Substantial rate of return (ROR) with reduced payback period

• Minimal out-of-pocket costs with flexible financing options and positive cash-flow stream

• Financial, technological, and operational risks are effectively eliminated

• The Mass Megawatts Solar Tracking System performance is guaranteed

• Helps our environment by reducing harmful carbon emissions.
The patented, STS technology is designed to automatically adjust the position of stationary solar panels to receive an optimal level of direct sunlight throughout the day. Unlike other solar tracking technologies, the Mass Megawatts STS utilizes a low-cost structure that adds stability to the overall system while improving energy production levels up to 30%.
The STS allows Mass Megawatts to lower material costs and reduce the number of solar panels needed to generate the rated capacity. Due to this advantage, Mass Megawatts can deliver more solar power production at a price similar to traditional, stationary systems. Specifically, we can offer 6.25 kW rated solar tracking systems at a price that’s competitive to stationary, 5 kW systems.

In many locations, this improved output translates into a 40% rate of return for the customer with investment payback occurring in the 3rd year. Further, by taking advantage of a lease program or power purchase agreement (PPA) with Mass Megawatts, a customer may realize immediate, positive cash flows, as energy savings and/or revenues will exceed the value of monthly payments due.

Starting at 6.25 kW rated units, a Mass Megawatts STS system is appropriate for ground-level, residential and business sites, as well as, commercial, roof-top installations, and has a rated life expectancy of 20+ years. Installation can be completed in a few business days, and there is no annual, routine maintenance to perform. Mass Megawatts coordinates all aspects of system delivery, including design, permitting, installation, and working to obtain any available tax incentives.

By leveraging favorable tax incentives and renewable energy credits, capital costs are quickly recouped and out-of-pocket expenses are virtually eliminated after the first year, providing a very exciting (and profitable) opportunity for investors. As an example, a 60 kilowatt (kW) STS, commercial installation in the state of Massachusetts is projected to realize a 10 year, return on investment topping 34% with payback occurring in the 2nd year. This creates a positive cash flow situation that continues throughout the useful life of the system.

Each customer is also protected with a performance guarantee from Mass Megawatts. If the system does not generate the projected level of energy, the customer is reimbursed for the difference in lost revenue. This effectively eliminates the operational and technological risk associated with any solar power system. Mass Megawatts looks forward to working with business developers and investors to achieve their financial and operational goals in this exciting time.

How and Why a Solar-Power Investment with Mass Megawatts Works
There are several factors that contribute to a favorable return with a Solar Tracking System from Mass Megawatts.

• Patented, low-cost, solar-power generation technology with guaranteed performance.
Mass Megawatts has developed proprietary, solar-power generation technology that utilizes an innovative structural design that combines a simple, yet robust, A-frame design with a low-cost, protective outer-wall. Using a non-electrical, and passive, tracking technology, the solar panels are automatically repositioned throughout the day as the sun's position travels from east to west. With ground fittings secured at multiple points, the system is designed to handle extreme weather and winds up to 120 mph.
The proven tracking technology allows the panels to receive more direct sunlight and to generate more solar power for the customer. With this system, solar energy production is increased by up to 30% compared to traditional, stationary configurations. Future versions of the STS will also offer a dual-tracking capability, which can improve solar power generation levels by an additional 10%.

The STS utilizes proven, solar components and technologies including high-quality solar panels, inverters, and tracking system technologies. This delivers a reliable, and predictive, energy generation result. The added stability of the STS improves MTBF, which leads to a reduction in down-time and improved performance for the customer. This is achieved with the patented, low-cost framework and protective outer wall, developed by Mass Megawatts.

In addition, “Technology risk” with a Mass Megawatts STS is effectively eliminated with a full, 10 year, operational and performance guarantee. Simply stated, if the wind system doesn’t produce the level of energy that’s expected, you will receive a credit for the difference in lost revenues.

• Reducing and eliminating financial risk with guaranteed, government incentives.
Federal, state, and local incentives offer a number of benefits for individuals and businesses that invest in solar power.

• Substantially reduces the total cost of a solar power system.

• Improves the return on investment and shortens the payback-period.

• Aids in securing third party financing for a solar power system.

With favorable rebates and tax incentives, a large percentage of capital costs can be recouped in the first year of service, while providing for substantial, ongoing revenues. This greatly reduces financial risk by allowing customers to more quickly reduce outstanding debt, shorten the investment payback period, and to increase ROR. The table below provides information on some Federal incentives that are currently available for solar power projects.

Federal Incentive * Type Applicable Sector(s) Incentive Detail

Business Energy Investment Tax Credit (ITC) Corporate Tax Credit Commercial, Industrial, Utility, Agricultural
30% of qualified expenditures, no maximum, for solar PV (photovoltaic) systems put into service by 2016.

Residential Renewable Energy Tax Credit Personal Tax Credit Residential 30% of qualified expenditures, no maximum, for solar PV (photovoltaic) systems put into service by 2016.

Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation Corporate Depreciation Commercial, Industrial, Agricultural

5 year depreciation, class-life schedule with potential 50 to 100% bonus depreciation in first year
Section 179 of the IRS tax code Business Deduction Small & Large Business/Commercial 100% of solar equipment can be deducted as an expense in the year of purchase. Limited to $500,000 in 2013.


* Please note that all incentives listed here are based on current legislation and available references, and are subject to ongoing changes and updates. A professional review of all incentives will need to be completed and verified by a tax attorney/CPA prior to a sales commitment.

The Business Energy Investment Tax Credit (ITC) is equal to 30% of total expenditures, with no maximum credit for solar power PV systems (photovoltaic) placed in service after December 31, 2008. Applicable to Commercial, Industrial, Utility, and Agricultural sectors. This allows the investor or developer to recoup 30% of capital costs within a year of installation. You can get more information about this tax credit at http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F .

The Residential Renewable Energy Tax Credit provides a 30% credit of qualified expenditures for a solar (photovoltaic) property that is owned and used as a residence by the taxpayer. Qualified expenditures include site preparation, installation, interconnection, etc., and there is no maximum credit for systems placed in service after 2008. Applicable to residential sectors, and the solar system must be placed into service before the end of 2016. You can get more information about this tax credit at http://www.dsireusa.org/solar/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1

Section 179 of the IRS tax code allows businesses to deduct the full price of qualifying equipment purchased during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, like renewable solar power equipment, you can deduct the full purchase price from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and to promote growth.

Unlike traditional depreciation schedules, which allow businesses to recover investments in certain equipment and properties over several years, section 179 allows business to write-off their entire equipment purchase in that same tax year. For most small businesses (adding total equipment, software, and vehicles totaling less than $500,000 in 2013), the entire cost can be written-off on their 2013 tax return.

Section 179 does have limits, including caps on the total amount written off ($500,000 in 2013), and limits to the total amount of the equipment purchased ($2,000,000 in 2013). Also, the deduction begins to phase-out when more than $2,000,000 of equipment is purchased. In fact, the deduction decreases on a dollar for dollar scale when exceeding this value.

All businesses that purchase, finance, and/or lease less than $2,000,000 in new or used business equipment during 2013 should qualify for the Section 179 Deduction. If a business is unprofitable in 2013, and has no taxable income to use the deduction, that business can elect to use 50% Bonus Depreciation and carry-forward to a year when the business is profitable.

Depreciable property that does not qualify for a section 179 deduction may still be eligible for accelerated depreciation (MACRS) and bonus depreciation programs (see below). You can get more information about IRS section 179 at http://www.section179.org.

The Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2013) program allows qualified businesses to recover investments in certain properties, including solar properties, through depreciation deductions based on an accelerated, class-life schedule of 5 years. Further, if eligible for bonus depreciation, the owner is entitled to deduct a significant portion of the adjusted basis of the property during the tax year the property is first placed in service. Depending on when the unit was placed in service, the allowable first year deduction can be 50 to 100% of the adjusted basis. Applicable to Commercial, Industrial, and Agricultural sectors. You can get more information about this tax credit at

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US06F

Other federal, state, and/or local incentives may exist that could further offset the cost of a solar power system. Additional research will be conducted by Mass Megawatts to verify the eligibility at each customer site.

In many states, such as Massachusetts, there are additional state and local incentives that can significantly reduce the final costs of a solar power system even further. For example, here’s a list of state incentives that a Massachusetts customer may be eligible for. (This list is not inclusive, and does not include all existing local incentives and programs.)

Massachusetts Incentive * Type Applicable Sector(s) Incentive Details

Solar Renewable Energy Credits (SRECs) Performance based incentive Commercial, Residential, Agricultural, Industrial + Utilities purchase SRECs to meet RPS requirements. A 6.25 kW system would generate around 7.5 SRECs per year for the customer. SRECs are guaranteed payments from the utility through at least 2021 in MA. (Clearing house price of $285 / SREC.)

Residential Renewable Energy Income Tax Credit Personal tax credit Residential 15% credit, max $1000, against state income tax for expenditures on a renewable energy, solar system

Renewable Energy Property Tax Exemption Property tax incentive Commercial, Residential, Agricultural, Industrial Solar energy systems are 100% exempt from local property tax for a 20 year period.

Renewable Energy Equipment Sales Tax Exemption
Sales tax incentive Residential Solar power equipment is 100% exemption from state sales tax
Commonwealth Solar II Rebates State rebate program Commercial, Residential, Agricultural, Industrial + Electric customers served by many investor-owned utilities may qualify for a rebate up to $4,250 (residential) and $2,250 (commercial) for solar power systems.

* Please note that all incentives listed here are based on current legislation and available references, and are subject to ongoing changes and updates. A professional review of all incentives will need to be completed and verified by a tax attorney/CPA prior to a sales commitment.

• Increased revenue with the sale of Solar Renewable Energy Certificates (SRECs)
In several states, Solar PV owners can generate income from the sale of Solar Renewable Energy Certificates (SRECs), which are the positive environmental attribute of the clean energy produced by a solar system. These are tradable certificates based on the production of the system. Participating states will qualify eligible solar projects, allowing the owner to sell their generated SRECs in the market. In addition to added sales revenue, this also helps to secure financing for an STS system.
In states that offer SREC markets, the Renewable Portfolio Standard (RPS) requires that electricity suppliers secure a portion of their electricity from solar generators. An SRECs is created for every megawatt-hour of solar electricity created. SREC markets are currently offered in DC, DE, MA, MD, NM, NJ, OH, and PA.

The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. The value of an SREC is determined by the market subject to supply and demand constraints. SRECs are typically sold to electricity suppliers (utilities) that need to meet their solar RPS requirement. The market is typically capped by a fine or solar alternative compliance payment (SACP) which must be paid by any electricity supplier that fails to meet the RPS requirement. Since SRECs are priced below this penalty payment, the suppliers are encouraged to purchase the SRECs directly from solar power producers. The sale of SRECs is intended to promote the growth of distributed solar by shortening the time it takes to earn a return on the investment.

One SREC is typically created for every 1000 kWh (or 1 megawatt) of electricity created. For example, a 10kW system can generate approximately 1 SREC per month. However, it is up to the solar installation owner to decide how to manage the SRECs that are produced. The SACP historical rates have shown a wide range across states, with Massachusetts rates, for example, recently fluctuating from over $500 down to the solar clearing house price of $285 per SREC.

It’s important to note that the SREC value is separate, and in addition to, the value of the electricity produced. So, you receive value for the electricity you generate and also for the SRECs you accumulate and sell. It’s a terrific, additional income stream for solar-power customers.

You can more information about SRECs market and their current values by state at http://www.srectrade.com/ .
• Increased revenue with the sale of Renewable Energy Credits (RECs).

Many states require power-suppliers to purchase a minimum level of renewable energy power each year, often defined within a renewable energy portfolio standard (RPS), but do not specifically define a minimum level of solar power generation. These states record and measured compliance through the use of renewable energy credits (RECs). Qualifying renewable energy systems, including solar, receive (or earn) RECs based on the level of clean energy they produce. Typically a REC is allocated for each megawatt of clean power that’s generated, and the value is separate, and in addition to, the value of the electricity produced.

Power suppliers purchase these RECs from power green-energy producers to achieve compliance with the RPS in that state. Often, the RPS level is increased annually based on a predefined schedule. This requires and encourages the production and use of clean energy sources and reduces the dependence on fossil-fuel sources. In some locations, based on market conditions, the value of the RECs can actually exceed the value of the electricity itself. This is a valuable source of ongoing income for solar power, and all, renewable-energy producers.

• Reduced electricity usage costs through Net Metering
While it’s well known that solar PV owners can use the electricity produced by their system to directly offset their electricity usage from the utility/grid, additional cost benefits can also be realized through Net Metering.
Net metering is a state regulation that allows customers generating their own electricity to be credited at nearly the retail rate for the energy they generate but do not use. A customer’s electric meter will run backward whenever the home or building is producing more solar power than is being consumed, and their utility account gets net metering credits for net excess generation.

Most states have net metering programs, and a 2005 Federal law requires all public utilities to offer net metering upon request. With net metering laws, the utility is required to keep track of your usage and store any extra power your solar panels generate. If you use more electricity than what you’ve saved up, the utility then charges you their regular rates for the excess.
Periodically, the utility presents you with a bill that is the “net” between what your solar panels generated over the year and what you used beyond that. If your solar power system was designed appropriately, your entire electric bill for the year should be minimized. The net metering programs offered by utilities can vary, including limits on capacity and different policies regarding how surplus energy is credited.

• Flexible Purchase Plans, including direct purchases, lease programs, and power purchase agreements (PPA) are offered.
Several purchasing options are available for an STS, including direct purchase, lease programs, and power purchase agreements (PPA). These plans offer flexibility and control over the initial deposit and out-of-pocket costs to give most home and business owners the financial means to take advantage of an STS. In some cases, the projected electricity cost savings, sales revenue, and/or incentives will exceed the payments due, so you can be in a positive, cash flow situation from day one!

With a PPA, Mass Megawatts would own the STS system on your site. We would install and maintain it, no cost to you, and you would pay us for the electricity generated (at a rate that’s below your current energy costs). In that manner, you have no up-front costs, yet still receive savings from the clean, solar power the system is generating. Other, modified PPA plans can also be setup to allow the customer to provide an initial, up-front payment, which would secure a lower rate on the electricity they receive in the future.

Mass Megawatts would be pleased to explain these purchase options in detail to each and every potential customer.

• Favorable financing options with third-party lenders.
Securing third-party financing for a Mass Megawatts Solar Tracking System (STS) is aided by the guaranteed receipt of future government incentives. This includes the 30% Federal tax credit, along with, state rebates and local incentives, which are received starting in the first year of service. These guaranteed, no risk, receipts are recognized and valued by third-party lenders, and help to secure financing.

• Full warranty, repair service, and performance guarantee provided for the first 10 years.
The STS comes with a full warranty protecting against defective equipment and workmanship during the first 10 years. Mass Megawatts also provides any needed repairs on the system during this time. While no routine, annual maintenance is required, the expected life of the inverter is 10 years and the outer-wall covering is projected to need replacement at 5 year intervals. These repairs will be completed by Mass Megawatts over the first 10 years.

The performance of the STS is also guaranteed during the first 10 years. If the system does not generate the expected and documented level of energy, the customer will be credited for the difference in lost revenue. Mass Megawatts is committed to delivering a high quality product and service to each customer.

• Mass Megawatts provides continued support to the customer throughout the entire sales and installation process.
Mass Megawatts will utilize their industry knowledge and in-house resources to provide continued support to the customer throughout the sales, design, installation, and operational lifetime of the STS. From the initial site evaluation, through the sales proposal with full disclosure of costs, incentives, and projected ROR, to the complete installation and support of the STS, Mass Megawatts will be there to oversee the process to ensure a successful implementation.