| This one is easier to get around Howey test if done right. But I can't tell from the site whether they'll do it this way. As a buyer the key is to provide direct ownership of the panel, and a contract where I pay for a service to install / upkeep the panels, and a contract to sell electricity. In this case I am buying an asset, and my profits don't depend on greater or less input by the company. The Howey test is: "a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party." The key for this service is that my profit is not tied to the efforts of the 3rd party, it's tied to weather, and electricity prices. Now they may structure it, such that it is a common enterprise, in that case it will pass the Howey test, and be a security. However if they sell the asset, and include a service agreement, then it doesn't pass the test. Edit: as an example, when you buy crypto miners from Compass, and pay them monthly to host them for you. Compass is not selling a security, they are selling as asset that generates revenue, but profit is not tied to the effort of the 3rd party. Edit2: Nevermind their site uses language like 7.3% return, shares, and cash dividend, so indeed it's a security and passes the Howey test. |