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  "notes": "The slide provides a critical perspective on the underlying economics of Sunrun's (RUN) tax equity financing structures.",
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      "text": "Thus, even though the Sponsor claims it is transferring equipment value to the Tax Equity, when one looks through the economics of the transaction, we believe it becomes clear that RUN is mainly selling assets that are not dependent on the homeowner's purchase of electricity once the FMV has been established.",
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      "text": "3. Receives approximately $.02 per year on the dollar of cash in each of the first five years based on its initial capital account balance; and 4. Receives $.02 - $.05 on the dollar in cash on the call payment when it is bought out in year five.",
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      "text": "The economics of the transfer and rights associated with the Tax Equity Investor's Class A interest and the Sponsor Equity interest demonstrate that the Tax Equity Investor is, in substance, acquiring the ITC and the depreciation tax loss. The economics of Tax Equity interest do not fluctuate once the face value (e.g., the ITC, depreciable tax base and capital account balance) is established. The PPA retains all other economics associated with the solar equipment electricity generation, and the Sponsor Equity, in turn, captures almost all of the economics of the PPA. Thus, even though the Sponsor claims it is transferring equipment value to the Tax Equity, when one looks through the economics of the transaction, we believe it becomes clear that RUN is mainly selling assets that are not dependent on the homeowner's purchase of electricity once the FMV has been established.",
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      "text": "In other words, on an after tax-basis, Tax Equity receives most of its initial subscription value in tax credits and depreciation before the end of Year 2, in addition to an IRR of 10-15%.",
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      "text": "Interview with Former Tax Equity Buyer at Major Bank, December 2021. NB: RUN Investor Relations estimated an 8-9% return to us. — Footnote 51",
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      "text": "51 Interview with Former Tax Equity Buyer at Major Bank, December 2021. NB: RUN Investor Relations estimated an 8-9% return to us.",
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