Renewable Energy Financing - Funding for Green Energy Projects
Green Commercial Capital provides access to funding for both small and large renewable energy projects both in the U.S. and Internationally.
Alternative Energy Project Finance Types
We assist with financing for renewable energy projects including:
- Roof top solar installations
- Ground mount solar installations
- Biofuel Production from various sources
- BioMass Crop Production
- Waste to Energy Production Facilities
- Waste to Ethanol
- Landfill Gas
100% Loan to Cost Construction Financing for Various Renewable and Alternative Energy Projects
- Investment/Transaction Size: minimum $10 million
- Project Locations: U.S. for most - International only available for much larger projects
- Projects need to generate a long-term, high quality income stream from Off Taker considered to be “investment grade” by the rating agencies or from unrated companies with especially strong financials and fundamentals
- Project approval is based on credit of Off-Taker not Developer
● Developer to provide basic info (name/credit profile of off taker and basic economics such as length of primary term and cash flow)
● Developer submits detailed due diligence package (executive summary, proof of site control, source and
use of funds, development budget, project pro-forma, executed lease/LOI/PPA,
● Investor and Developer agree on cap rate and purchase price for project
● Investor and Developer enter into a Master Development Agreement outlining all terms, roles and
responsibilities in the transaction
● Investor closes on the subject land and reimburses Developer for all pursuit costs at closing
● Developer submits monthly construction draw requests which are funded by Investor
● Upon completion and commencement of payments by Off Taker, Investor makes final payment to Developer for any remaining amounts less accrued construction period interest
Benefits to Developer:
● 100% LTC Construction Financing — No need for Developer to raise/contribute equity or secure bank
● Developer makes typical Development Fees and Developer's Profit vs. straight "Fee Development" deal
● Cost savings for Developer
○ No appraisal required
○ Since the Investor closes on the land, there is only one closing — saving disposition broker's
fees, attorney fees, transfer taxes, etc. on the second closing
○ No lender fees since this is a purchase
● Personal liability for Developer limited to providing performance and cost overrun guarantees
● This program is based on the credit worthiness of the off-taker, not the developer
Initial checklist of necessary documentation:
- Executive Summary: 1-3 pages that answers the following:
- Who is the Sponsor? - what is their resume / track record / background
- Status of the Power Purchase Agreements - need to know more about the off-taker than the sponsor - like to see:
- stock symbol (if applicable)
- S&P / Moody's / Fitch rating (if applicable)
- Overview on technology - has it been commercially used before?
- Name and website of EPC contractor
- Copy of PPA in most current form (executed PPA is best / LOI / term sheet / MOU)
- Project Pro-forma
- Cash Flow Projections
- Cost breakdown / summary development budget / use of funds
Take OR Pay Project Finance - 100% Financing with Deferred Payments
100% financing is available for those projects with extremely strong Off-Take Agreements - generally Take OR Pay contracts (a.k.a. "hell or high water" contracts) and we have a few 100% financing options that allow you to defer payments for the first few years.
Take OR Pay
A Take OR Pay contract means your off-taker has committed to purchasing a fixed amount the power or product you produce unconditionally or "no matter what...come hell or high water."
Take AND Pay
Take AND Pay contracts mean the off-taker will take your energy or product as you produce it. (i.e. they will buy what you produce - if you don't produce and deliver it, they don't pay).
Take AND Pay contracts may be eligible for 100% renewable energy project financing if your off-take agreement is with a quality investment grade entity or obligor and as long as the contract is insurable. The language of the off-take/purchase agreement needs to be fairly specific so that getting an insurance policy is possible.
Bottom line...Take OR Pay contracts with a quality investment grade entity are straightforward and 100% project financing may be possible.
"Take AND Pay" contracts are more difficult and can take time to get the right agreement with the right language.
Tax Exempt Renewable Energy Project & Municipal Financing
We have excellent options for taxable and tax exempt, 501 (c)(3) non-profit organizations - including Schools, Churches, Private Schools and Universities - who are unable to take advantage of the Federal and State incentives for renewables, and we also have the ability to provide debt for Municipalities and our sources have significant expertise in all aspects of municipal leasing.
Please contact us at 1-800-414-5285 or fill out a contact form if you have a project in need of funding.
Large Renewable Energy Project Finance - More info:
We provide access to capital for large utility scale projects through various sources including:
- Pension funds
- Institutional investors
- Private investors
- Hedge funds
- Multinational Banks
Eligible Utility Scale Projects include:
- Wind Power, Wind Farms
- Photovoltaic Power/ Solar Power, Solar Farms, Solar Power Plants
- Biomass, Biofuels
- Hydropower Plants
- Ocean Thermal
In addition to assisting with financing renewable and alternative power production our investors will also consider:
- Equity Partnerships
- Joint Ventures
- Long Term Debt Financing
- Take Outs
Our investors do not offer VC or R & D financing at this time.
Please contact us at 1-800-414-5285 for more information regarding renewable energy financing.
Please visit our Green 504 Loan page if you are considering incorporating renewable energy into an the construction or renovation of a 51% or more "owner occupied" commercial building.