Midas Partner Meeting 2/18/2026
Summary
Midas Wealth CEO Cody Osterhout, reviewed new Price Per Watt (PPW) caps—6.5 for PV-only systems and \$2,500 per kWh for batteries—implemented to comply with IRS scrutiny focusing on excessive dealer fees. Cody Osterhout clarified that unique products like solar tiles can exceed these caps with proper documentation, and also confirmed that Midas services are tax write-offs, cautioning partners against "double dipping." The team decided to require CAD designs for customer submissions, is updating the Midas platform for better transparency, and has launched a new calculator for streamlined customer submissions; additionally, they plan to use the AI tool 'Sophie' for sales support and confirmed Midas's ability to handle backdated services and commercial clients willing to forgo tax credits.
Details
PPW Caps and Compliance: The discussion focused on updated Price Per Watt (PPW) caps due to increased scrutiny from the IRS following step-up issues with other companies, specifically Thrive and HDM (00:01:41). The new PPW cap for PV-only systems is set at 6.5, and batteries are capped at $2,500 per kilowatt-hour, a structure intended to provide enough working space while ensuring compliance (00:02:40) (00:04:54). It was clarified that these caps are not rigid limits but require justification if exceeded, especially for non-traditional systems like Tesla solar roofs or solar shingles (00:02:40) (00:06:51).
Feedback on PPW Caps: Participants generally found the proposed PPW caps acceptable, with Daniel Rea noting that the 6.5 cap for PV only is conservative compared to prior limits. Dave Smith raised a concern that their solar tile products would not fit the 6.5 cap, but Cody Osterhout clarified that unique products like solar tiles or Tesla systems can be approved outside the traditional cap with proper documentation (00:06:02). The battery cap of $2,500 per kilowatt-hour was also deemed satisfactory, providing adequate margin (00:07:44).
Focus of IRS Scrutiny: The primary focus of IRS scrutiny regarding pricing is on excessive dealer fees and commissions rather than the system's inherent cost (00:06:51). If a price is deemed egregious, the customer could face a chargeback on their tax credit plus a potential 20% penalty, emphasizing the importance of adhering to the guidelines (00:04:54). The full transfer process is being more protected because it affects thousands of people, unlike issues with individual homeowners (00:03:36).
Integration of Midas Service and Write-Offs: The Midas service fee is itself a tax write-off for customers, and the fulfillment partner is tracking the retainer amount paid. Partners must ensure they are not "double dipping" by wrapping the service fee into the system price without listing the retainer amount, or listing it as a separate line item for battery-only deals (00:11:46). To protect all parties, the PPW caps will be added to the terms of service (00:08:55).
Requirement for CAD Designs: The team will begin requiring CAD designs to be included in the customer submission files. Coralia Robleto asked about submitting CAD designs for existing customers, and Cody Osterhout demonstrated a button in the system that allows partners to update documents later by re-entering the customer information (00:12:44). The team is actively working on a new proprietary CRM that will offer a more streamlined and transparent process for uploads and tracking (00:13:51).
Customer Submission Process and Transparency: Marc Taddonio inquired about tracking which documents have been uploaded, to which Cody Osterhout confirmed that the current Midas platform does not yet offer that transparency. Currently, the process relies on triggers such as the customer signing the agreement, which sends a text message to the representative, followed by requesting and paying the invoice for activation (00:16:14). If additional information is needed, the team will reach out directly (00:17:06).
New Calculator and Customer Submission: The new calculator is now functional for submitting customers, which is a preferred method as it is more efficient than using the previous checkout process. The calculator includes a feedback button for suggestions and allows the representative to submit the customer, which simultaneously sends the calculator PDF to the company's CRM (00:18:15). It is recommended that representatives CC themselves on the submission email to save a copy of the calculator (00:25:03).
Midas Reviews and Rebranding: Midas has historically lacked bandwidth to actively pursue customer reviews, which has resulted in some negative, older reviews appearing when searched (00:20:07) (00:26:05). The team has hired someone to address the review situation and is considering a slight rebrand to pull positive reviews forward, acknowledging that a few negative reviews are inevitable when doing business (00:20:07) (00:27:01). Cody Osterhout requested that partners provide reviews and encourage their customers to do the same to boost the company's presence, mentioning a plan to use a specialized link to filter five-star reviews for immediate posting (00:33:54).
AI Tool 'Sophie' for Sales Support: The AI tool Sophie was built and trained with sales psychology to help representatives handle questions and objections instantaneously. Representatives are encouraged to use Sophie, as it provides an immediate response without the need to contact a brand ambassador. The team plans to update Sophie to be accessible via text message, eliminating the need for the chatbot interface (00:21:59) (00:24:13).
Kickback on Strategy and Amending Taxes: The company experienced its first kickback on the strategy after nearly 5,000 clients, which was attributed to the tax amendment process. The kickback was successfully resolved after Midas provided their detailed letter of opinion and documentation, which the IRS accepted. It was noted that amending taxes carries a slightly increased risk of IRS audit and potentially a delay in the timeline, which representatives should manage in customer expectations (00:31:54).
Pricing for Backdated Services: A question was raised regarding a customer who needed backdated Midas services for a 2023 system plus a new battery in 2026. Cody Osterhout confirmed that the customer should be charged for the three-year service first, and then billed separately for the subsequent tax year, noting that the cost to continue services is less once the business setup is complete (00:28:50). Cody Osterhout also warned that the price for the three-year service is expected to increase in the next quarter due to rising compliance costs, and partners will receive a 30-day notice (00:30:46).
Commercial Clients and Tax Credit Foregoing: Seth Requena, with Sun Collectors, described a commercial client who was willing to forgo the tax credit and depreciation if Midas could secure 25% of that benefit in the next tax year (00:35:58). Cody Osterhout confirmed that Midas can handle such cases and advised submitting the client as a full transfer through the calculator (00:37:00).
Better Business Bureau (BBB) Stance: Cody Osterhout stated that Midas will not sign up for the BBB, even after a potential rebrand, as they view the platform as a "scam" that requires constant payment. The company will focus on representation across platforms like Google and Yelp Business instead (00:37:47).
