Renewable Energy Project Financing

Renewable Energy Project Finance – 2019

We have active lenders who provide attractive financing for the following types of renewable energy projects in the U.S.:

• Utility Scale Solar Projects
• Community Solar
• Commercial and Industrial Solar
• Anaerobic Digestion Projects
• BioGas/Renewable Natural Gas
• Waste to Electricity Projects
• Landfill Gas
• Gasification Projects
• Biofuel Production
• BioMass Crop Production
• Biorefineries
• Waste to Energy Production Facilities
• Waste to Ethanol
• Hydroelectric (Small Scale)
• Wind Energy Projects
• Others

We may also be able to provide sources for equity for the larger, stronger projects.

 

Biorefinery Funding

(Including New Technologies)

This program is available throughout the U.S. for projects starting at approx $10 million up to approx $300 million. Funding is available for biofuels, bio-based products and “renewable” chemicals for construction, development or retrofit of emerging or new technology. Large Gasifiers are eligible for this program if they use Biomass as feedstock.

U.S. Rural Renewable Energy Loans

This is a program offered for start up energy systems in rural areas of the United States.  Basic program highlights are as follows:

• $2 – $25 million
• 25 year maximum loan
• 6-7% fixed rates (Spring of 2019)
• 25% equity required (we have sources for this)
• Underwritten to a 1.20 to 1.40x debt service coverage ratio depending on the technology, type of feedstock and offtake. (Longer contracted feedstock is preferable).
• Requires environmental assessment, feasibility study, appraisal and independent engineering report
• This program can be used in conjunction with other rural energy programs for acquisition, refinance, equipment purchase, land or energy systems

Please call us at 1-800-414-5285 or contact us if you have a project in need of funding.

 

Energy Storage Project Financing

Energy storage project financing is readily available throughout most of the U.S. for:

1. Solar energy storage projects
2. Solar Plus storage projects
3. Non-solar energy storage projects

Fixed rate loans up to 25-years are available.  Projects can be pre-qualified at an early stage so you know what is possible before entering into contracts with various parties.

 

International Projects

We have sources for $50 million+ projects outside the U.S., but the projects need to be exceptionally strong and in stable countries with very good credit ratings.

Developer Program: 100% Loan to Cost Construction Financing 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

 

Process Overview:

● 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, etc.)

● 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
construction financing

● 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:
    • website
    • 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

Tax Exempt Renewable Energy Project & Municipal Financing

We have excellent options for taxable and tax exempt, 501 (c)(3) non-profit organizations – including established, larger 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 call us at 1-800-414-5285 or contact us 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.