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Doug Middleton is a technology enthusiast and lifelong learner. He has spent the last two decades in IT sales, with a focus on customer ROI and success. He lives in northern Virginia with his amazing wife Jessica of 21 years who has blessed him with three amazing children.
After careful consideration, Doug decided to make a break from the traditional stock market and invest in tangible assets. To take full advantage of his investment opportunities he began looking into different strategies for reducing taxes while simultaneously increasing investable capital.
Among these options was Solar Loans which allowed him to pay less on monthly energy costs than if paying an electric company – all with the added bonus of receiving up to 30% tax credit! With this newfound Energy Independence came significant control over future energy cost as well, making it one worthwhile opportunity not easily overlooked by savvy investors such as Doug!
With an investment in Solar, you can customize a system to suit your needs – emphasizes Doug. You can benefit from 25-year loans with monthly payments and no money down – you will start saving immediately.
Listen now and learn more on how you can truly take advantage of energy independence with complete control over future costs!
In This Episode
- How Doug became an investor and an entrepreneur.
- What is Solar and how can anyone deploy it?
- Energy Independence and how it is supported.
- How to go Solar and what it entails.
- Doug’s top productivity habits and wealth strategy advice.
Welcome to today’s show on Wealth Strategy Secrets. Today, we’re joined by Doug Middleton, a technology enthusiast, lifelong learner, and avid investor. Doug has spent the last two decades in IT sales and entrepreneurship with a focus on customer ROI and success. Currently, he helps clients achieve significant tax savings and energy independence through solar solutions. Doug lives in Northern Virginia with his wonderful wife, Jessica, of 21 years, and they have three amazing children. Doug, my friend, welcome to the show.
Thanks, Dave. It’s great to be here.
I’m excited about the conversation today. I think listeners are going to get a ton of value because, as they know, investing is often about financial engineering—finding strategies and hacks to increase wealth and reduce some of the biggest expenses, like taxes. I know there are a lot of great benefits around solar, so I’m excited to dive in and explore what some of those might be for investors and business owners. But before we get into that, why don’t you start by telling the audience a little bit about your background and how you became an investor and entrepreneur? How did it all start for you?
I’d say my core has always been in technology—I’ve loved it for decades. My initial intersection of technology and investing was with the stock market during the pre-2001 dot-com boom. At that time, Internet technologies were exploding, with stocks experiencing ridiculous growth.
That lured me into some speculative investing, and, like many, I got burned in the .com collapse. But that was when I started thinking about what a company is truly worth, what its stock is valued at, and the overall concept of investing—making educated bets on technologies and doing your best due diligence to see what combination of factors might pay off. That was the beginning. Like it does for many, it took me a while to decide to decouple from the stock market. In the past few years, you’ve been a huge help to me in rethinking that traditional mindset.
That’s great. It’s been so amazing to watch you on this journey, Doug. You’ve gained more clarity and confidence with each decision, and we’ve seen many investors make similar journeys. Wherever you are on the path, we’re always learning, evolving, and trying to get smarter about what we do. And it’s incredible because, at a time when there’s so much uncertainty in the world, with markets down 25-30%, people have realized how little control they have in that one-dimensional investment landscape.
Many are grateful they decoupled from the market over the past few years to focus on tangible assets. It’s super rewarding to see your progress and evolution. That’s what we’re here for—to help people gain new insights. So, I’m grateful for you sharing those insights with everyone.
For sure. Thanks, Dave.
Let’s dive into solar. We’re always looking for innovative strategies to reduce taxes, one of our biggest expenses, and to increase investable capital. So, tell us a bit about how you arrived at the solar solution. What is it exactly, and how can people deploy it?
About 12 years ago, I started looking into solar. I’ve loved the technology for a long time, but back then, interest rates meant people had to pay for the whole system upfront. That led me to calculate my ROI, which came out to 18-20 years—not a good investment for me at the time.
I realized I could make my money work better in other places, so I decided to keep buying my kilowatts from the electric company. But what’s changed since then is that interest rates for solar loans are now relatively low, making it more of a cash flow discussion. So, I’m going solar personally, and that means I’ll be paying less monthly for energy with the solar loan than I was paying to the electric company. Plus, there’s a 30% federal income tax credit, along with other benefits.
For me, there was essentially no reason not to go solar, even here in Virginia where power costs are relatively low compared to the rest of the country. There was still a compelling financial case to make the switch.
Got it. So, people who install solar systems can expect a 30% tax credit. Is that correct? How does that work?
Yes, there’s a 30% tax credit, and it’s quite flexible. With recent legislation, the credit increased from 26% to 30%, covering not just the solar system cost but also expenses like tree trimming or removal and roof replacement if your roof is too old to support a new solar system.
All those costs are included in the 30% tax credit, making it a great opportunity, especially for those who know their roof is nearing the end of its life. It’s never been a better time to consider the economics of solar.
I think there’s another benefit people might not fully consider, especially in late 2022: energy independence. We’re seeing a shift toward more localized manufacturing, a trend towards deglobalization, where more production is coming back to the U.S., allowing us to control supply chains.
From an energy perspective, having energy independence is very powerful. Personally, after moving to Florida and experiencing Hurricane Ian, I saw firsthand how people were without power for weeks. That’s a major disruptor to your business, life, family—everything. Can you share more about energy independence and its benefits?
Yes, you’re right, Dave. Energy independence is significant not only for personal or family security but also for financial stability. As residential electricity prices continue to rise, going solar allows you to take control of your future costs.
With a solar loan, you get a fixed interest rate, so there’s no variability, no uncertainty, and no prepayment penalties. You can make extra payments if you want to pay off the loan faster. This combination of energy independence and financial security means that, regardless of fuel price increases, my energy costs are fixed. And once the loan is paid off, my energy is essentially free, which is even more exciting.
How does the process work? Let’s say I’m building a new house or renovating an older one and decide to go solar. What would be the steps, and what advice would you give?
That’s one aspect I enjoy—working with people to figure out the variables involved in designing a system for their home. First, you need to consider your family’s energy requirements by reviewing your electricity costs over the past 12 months. Your neighbor might have twice your energy cost if they have a pool or keep their thermostat low, so it depends on your family’s usage.
The second factor is your roof’s dimensions and angles. South-facing roofs are ideal in the northern hemisphere to capture maximum sunlight. Other considerations include aesthetic concerns and roof layout. Some people are absolutely against putting solar on the front of their roofs, so we look at multiple scenarios.
If you have panels on the back, what’s that going to do to the cost of your overall project versus having them on the front? There are a lot of factors to consider, and also, some of the nuts and bolts, like the inverters and equipment options, come into play. We work with customers to design something that has a positive financial impact compared to what they’re paying their electric company.
Makes sense. If you were to break down the financial components, how would that look?
Essentially, the finances are structured for most people — myself included — with a 25-year loan. The benefit of that, though it sounds long, is that it allows you to have monthly payments on the equipment that matches your existing electric bill. In states like California, you could probably go with a 15-year loan and still be on par because energy costs are so high there. But most people look at it from a cash flow perspective.
So with a 25-year loan at a fixed interest rate, you’ll be about even with your electric bill averaged over 12 months. Many states now, including Virginia, have the Solar Renewable Energy Credit (SREC). This is a guaranteed credit for generating renewable energy. So, for example, if your monthly electric bill is $200, with solar and the credit, it might be down to around $120 net.
The electric companies and utilities face fines for not meeting state mandates on renewable energy production from sources like solar and wind. So, rather than pay higher fines, they buy your renewable energy credits on the exchange. This means, that with no money down and a low fixed interest rate, people can start saving money in the first month, along with the tax benefits.
Got it. And in this current interest rate environment, how are you able to secure these rates? Do you work with specific lenders who specialize in this?
Yes, there’s a whole solar lending industry with four or five major lenders specializing in this space. Although interest rates for solar loans trail behind the Fed’s adjustments, they are still increasing. There’s a compelling case for people on the fence about solar because, with rates rising, solar loan rates are following, typically on a 60- to 90-day lag behind the Fed.
What’s the average rate now for a 25-year term?
For a 25-year term, the best rates are around 2.99%.
It’s competitive.
Absolutely. You’re saving by lowering your costs over time, fixing your costs, and benefiting from tax credits. For most taxpayers, these credits are compelling at 30%. Plus, for small business owners or those with a home-based business, the potential tax write-offs for solar can reach 80–100%. Always consult a tax professional, of course, but there are substantial tax savings for business owners.
Interesting. For listeners with businesses, how does solar work for commercial properties or rental properties?
It’s another great area. Many property owners see significant tax benefits by going solar on rental properties, too.
Earlier, you shared a chart. Could you walk us through some of the key points?
Looking at a 25- or 30-year span for someone going solar, they can achieve peace of mind by fixing energy costs. The chart projects 3.86% annual inflation, which I believe is conservative. Your electric bill could triple if everything else stays constant. Ten or fifteen years from now, a once-small bill could rival a car payment. Locking in energy costs with solar is predictable, making sense in the long term. We often focus on the short term, but looking ahead, you could see $100,000 in savings for a single-family home in states with lower energy costs, like Virginia, and even more in high-cost states like California or Hawaii.
Interesting. Can you give a breakdown by state? Which are the most expensive states outside of California and Hawaii?
New England is facing steep increases in electricity costs. Texas and Florida also see rising electricity costs and power reliability issues, so people in those areas are increasingly interested in solar and battery systems. They may stay connected to the grid but won’t be fully dependent on it.
Does the intensity of the sun play a role? Are systems more efficient in states like California, Arizona, or Florida compared to the Northeast?
Yes, definitely. Places with more sunlight hours and higher sun intensity, like California, Arizona, and Florida, will generally have more efficient solar systems than areas with less sun exposure, like the Northeast.
Yes, those systems will produce higher output. For example, the same solar system in Arizona will produce significantly more than one located at a northern latitude, right? This essentially lowers the cost and makes their economics even more attractive.
Absolutely. But even in northern states like New England, there are still positive outcomes, especially in areas with elevated electricity costs. Those systems don’t need to be as productive as those in the southern states. In my experience, I haven’t seen cases where the local environment makes solar unviable, except perhaps in areas with complete tree cover, where homeowners may not be open to trimming trees to allow sunlight to reach the roof.
Are there other factors that might drive someone towards solar, like having an electric vehicle (EV)? I’m not sure how much an EV would increase energy usage, but are there other reasons like that that could make solar more appealing?
For sure. EVs will only add a couple of percent to your total annual power cost, maybe around 2-3%. It’s a small increase and won’t be very noticeable. But if you decide to go solar, the cost of preparing your house, like setting up the EV charging apparatus, electrical wiring, and any needed sub-panels, is part of the solar project—and still qualifies for the 30% tax credit. So if you’re considering an EV, it’s a great time to make your house EV-ready as part of your solar project.
Got it. Any final thoughts on investing in solar? Why do you think it’s a smart decision, and any closing advice for the audience?
I’m very happy and excited to be in the solar industry. It’s a great technology with feel-good benefits, like contributing to a cleaner future for our descendants. My closing thought would be to encourage people to shop around if they’re considering solar. It’s a bit of a gold rush, with many new companies jumping into the market, including roofing and home service businesses. It’s essential to do your due diligence—get multiple proposals, look at warranties for solar production and equipment, and ensure you’re choosing a company that’ll provide a system that keeps you happy for 10, 15, or even 20 years.
Makes perfect sense. And Doug, shifting gears a bit, I know you’re a high performer. What’s one of the top productivity habits you’ve developed over the years?
Good question. For me, it’s keeping my notepad close by. I have a lot of thoughts throughout the day, so capturing them as they come to mind and revisiting them later helps me prioritize. I’m results-oriented, so crossing things off my list gives me a positive boost, and having a physical record ensures I don’t lose any ideas.
I completely agree. I start my week with a weekly planner, setting priorities before checking email. There’s even a dopamine release when you physically check things off your list. Despite all the digital tools, writing things down can keep you organized and intentional.
Absolutely. It helps train your brain to filter out the noise, capturing only what’s worth noting down.
Definitely. And Doug, if you could leave one piece of advice for listeners on accelerating their wealth trajectory, what would it be?
Rethink debt and leverage but in a disciplined way. Traditional thinking says debt is bad, like paying off your mortgage. But, as you and others have noted, the return on equity in your home is 0% every year. Instead of focusing solely on paying down a mortgage, families should consider a thoughtful investment strategy to grow their wealth alongside managing debt.
Great advice, Doug. It’s been a privilege to hear your insights on energy independence, tax savings, and cost efficiency. Where can listeners connect with you if they want to learn more?
The easiest way is my solar website: powur.com/doug.middleton. It’s a landing page with my contact info, so people can reach out to see if solar is right for their home.
Perfect. We’ll include that link in the show notes, along with any other resources you can provide, Doug.
Will do! And, Dave, on a personal note, I appreciate our friendship and your commitment to sensible, methodical wealth strategies for investors. It means a lot.
Thank you, Doug. It’s been great having you on the show, and I look forward to next time.
Thanks, Dave.
Take care.