Replies to post #33306 on Plug Power Inc (PLUG)

[uksausage]

PLUG couldn't benefit from the ITC If they owned the cells since they do not pay taxes as they are not profitable yet!
This way they get a cut of the ITC benefit along with Wells Fargo

Henrik's papers describe it in better detail than me.

The prior lease agreements all the benefit went to the bankers

All I know is that in the quarterly numbers the PA revenues are for all installed Walmart GenDrives but the cost of PPA is I think the value of the ones shipped this last quarter. Assuming the lease is a 7 year leas that cost is spread over 28 quarters in revenues, once we have 28 times the normal quarterly shipments in the field there will be cash flow each quarter from the PPA agreements. Or when the roll out stops there is no cost element just 100% margin from the lease payments coming in.

Oh and we sell ourselves new GenDrives at the 7 year anniversary automatically!