Risk Factors of Energy Industry

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RISK FACTORS ASSOCIATED

1) Existing electric utility industry regulations, and changes to regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems that may significantly reduce demand for your solar energy systems. 2) The expiration, elimination or reduction of these rebates, credits and incentives would adversely impact your business. 3) If the Internal Revenue Service or the Treasury Department makes additional determinations that the fair market value of your solar energy systems is materially low your than what you have claimed, you may have to pay significant amounts to your investment funds or to your fund investors and such determinations could have a material adverse effect on your business, financial condition and prospects. 4) Your ability to provide solar energy systems to customers on an economically viable basis depends on your ability to finance these systems with fund investors who require particular tax and other benefits. 5) You need to enter into additional substantial financing arrangements to facilitate your customers’ access to your solar energy systems, and if this financing is not available to you on acceptable terms, if and when needed, your ability to continue to grow your business would be materially adversely impacted. 6) A material drop in the retail price of utility-generated electricity or electricity from other sources would harm your business, financial condition and results of operations. 7) A material drop in the retail price of utility-generated electricity would particularly adversely impact your ability to attract commercial customers. 8) Rising interest rates could adversely impact your business. 9) You must have guaranteed a minimum return to be received by an investor in certain of your investment funds and could be adversely affected if you are required to make any payments under those guarantees. 10) In your lease pass-through...
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