392 Main Street, Hackensack, NJ 07601 (e) steven.leitner@capsolar.org (p)201.968.0200 x 7057 SOLAR ENERGY AS A SOCIAL ENTERPRISE www.capsolar.org
CAP SOLAR – ROOFTOP SOLAR – THE VALUE
CAP SOLAR – COMMUNITY SOLAR – THE VALUE Ford / EPA / Ringwood Remediation Cap Solar Community Solar Farm
392 Main Street, Hackensack, NJ 07601 (e) steven.leitner@capsolar.org (p)201.968.0200 x 7057 SOLAR ENERGY AS A SOCIAL ENTERPRISE The discussion 1. Why CAA solar? 8. Understanding the options available 2. Available Financing 1. Risk Quadrant 3. Opportunity Zones 9. Snapshot of the Solar Market 4. Other Funding Methods 10. The importance of the Value Statement to attract funders to 5. Project Flow non-profit solar. 6. Leadership Time and Resources Needed 1. Cap Solar Rooftop Project 7. Where to get projects 2. Cap Solar Community Solar Project. 8. How Cap Solar attracted Funding for the Network. 11. The Cap Solar Value Statement to the Network
392 Main Street, Hackensack, NJ 07601 (e) steven.leitner@capsolar.org (p)201.968.0200 x 7057 SOLAR ENERGY AS A SOCIAL ENTERPRISE Why Community Action Solar? • Cap Solar is inside our network and has better insights into the mission of our Network than an outside developer. • As the solar developer, the CAA is in control of the aspects of the project that serves our communities. • Price of Power • Choice of off-taker • Avoidance of credit-worthiness of off-takers. • New clients to widen CAA reach into community for other services. • More unrestricted development and other fees paid directly into local CAA. • Renewables are evolution of services in our network • LIHEAP • Weatherization • Database mining for off-takers. • Local / State / Federal Innovation
CAP SOLAR – INVESTORS AND THE NETWORK • Cap Solar has proven to investors that non-profit solar can be a market rate investment. • Cap Solar has access to different types of capital that is not always available to for-profit companies. • As the developer, your CAA can set the price of power at a deep discount. Cap Solar will model lowest price possible with the funders to see if a project is viable. • Cap Solar has presented the value of the CAA network to our funders to drive more value and economies of scale to our existing clients. • Together, we have an immediate opportunity to create a nation-wide program. … AND WE HAVE ACCESS TO THE CAPITAL TO DO IT WITH YOU.
AVAILABLE FUNDING THROUGH CAP SOLAR FOR NON-PROFIT SOLAR $1 BILLION $350 MILLION • Large European Renewable • Opportunity Zone Funds Company looking for specific • Aggregate minimum of 400kW market share in the US. • Larger individual projects will • Aggregate minimum of 1-3mW garner larger fees to CAA. • Larger individual projects will • Must be invested by 2025 garner larger fees to CAA. • Solar only • No restrictions on location of building site. • All renewables considered When can this happen? Who can participate? Now Any non-profit or for-profit that will return value to the community. www.capsolar.org
WHAT IS AN OPPORTUNITY ZONE? www.capsolar.org
OPPORTUNITY ZONE REGULATION
OPPORTUNITY ZONES What are they? • An Opportunity Zone is a tax incentive to invest in economically- distressed communities. • Opportunity Zones are special entity corporations with shareholders who can invest and divest in each corporation for as long they want the Zone tax incentive. • The Zones were chosen by the Governor of each state. • An investor can reduce certain capital gains taxes if the investment is in the Zone for 10 years. • The incentive expires in 2026, so projects must be under construction in 2025. • The Zones represent 8,700 Census Tracts and cover 18,565 Zip Codes.
OPPORTUNITY ZONES 31 Square Miles 10GW 1/7 th of all US solar
OTHER FUNDING Funding Sources For-Profit Non-Profit Corporate Corporate • Traditional Loans and Equity Investments • Traditional Loans and Equity Investments • Community Reinvestment Act (CRA) • Tax Investors – ITC, MACRS, NMTC, Opportunity Zones • Impact Investing • Social Impact Bonds As a non-profit, as long as we • Corporate Social Responsibility (CSR) are providing off-taker support Government services, we can raise funds • Office of Community Services (OCS) • Department of Community Affairs (DCA) AFTER the project is • Department of Energy • CSBG operational. • LIHEAP Re-Allocations - Statute 2605 subsection (k)(1), (k)(2A), (b)(16) • Societal Benefit Charge Incentives • Regional Green House Gas Initiative • Cap and Trade Grants Other • Foundation Grants • Foundation Loans • Foundation Guarantee • Donations
HOW DO THE FEES WORK? Types of Fees • Origination Fee – Finding the project • Developer Fee – Participation in the development of the project • Off-taker Fee – Finding the off-taker(s) • On-Going Services Fee – Guaranteeing the power payment to the funder. • “Pre-Development Fee” – Delivering a ready to build project. Size of Fees • Size of the overall project will receive higher fees. • Larger, single projects will receive larger fees. • Fees to be paid after project completion • Assumed predevelopment costs ie: Engineering can be reimbursed. • Delivering a ”Ready to build” project will maximize all fees.
PROCESS CHART FOR CAP SOLAR PROJECTS 1. I am interested 2. I have identified opportunities Interest 3. I am not sure how to identify opportunities 4. Contact Cap Solar 1. Advisory session Advisory 2. What needs to be done to analyze the market? 3. What outcomes would you like to see? 1. Cap Solar performs a market analysis to determine if another advisory session is needed 2. Cap Solar performs a fiscal analysis based on desired outcomes Implementation 3. Cap Solar makes a formal presentation to its funders 4. If accepted by funders, Cap Solar presents the terms of the outcomes with CAA 5. Cap Solar builds the project Completion 1. Fee Distribution
FISCAL WORKFLOW FOR CAP SOLAR PROJECTS Project Project Fee End Construction Completion Distribution Development CAA Funds Cap Solar Origination Market, Engineering and Fiscal Analysis Project $ Y Fees N End
LEADERSHIP TIME AND RESOURCES – DO IT YOURSELF CAA Legal Prepare entity • Sales and Marketing Prepare documents • • Outreach to CAA’s local network Review/change all final contracts • • Explain solar and financial impact Specialty Advisory Services • • Review Site Lease and PPA Financing Available types of Financing • Back Office Comprehensive Business Plan • • Coordinate draw down and EPC payments Solar Fiscal Modeling • Monitor power produced • Construction Contract negotiations • Monetize state incentives • • Engineering/ Procurement / Fiscal Pitch / Road Show • • Bill site host under PPA Construction (EPC) • Aggregate cash-remit to equity investor • Monitor Construction File State and Federal Taxes • • Complete interconnection Produce financial statement • • On-going O&M responsibility
LEADERSHIP TIME AND RESOURCES – WITH CAP SOLAR CAA Sales and Marketing • Outreach to CAA’s local network • Explain solar and financial impact Community Engagement
COMMUNITY ACTION’S REACH – WHERE CAN I FIND PROJECTS? Hospitals, For Profit Non-Profit Municipality Community Health Centers Schools Boys and Girls Club Corporate For-Profit Solar YMCA Municipal Property Private Developers Local Union Affiliate Private Salvation Army Housing Authority Religious Lands for lease Rotary/Kiwanis, etc Religious Good Will Superfunds Head Start Shopping Centers CHiP Low Income United Way Capped Landfills Day Care Mausoleums Veterans Homes Community Boy/Girl Scouts Parking Structures Public Schools Banks VFW Many Others… Red Cross Penitentiaries Many Others… Condo Complexes Senior Centers Religious Charities Police Department Real Estate Community Centers Many Others… Fire Department Developers Recreation Centers EMS Many Others… Gymnasiums Libraries Religious Many Others… Organizations Many Others…
COMMUNITY ACTION SERVICES FOR LOW-AND-MODERATE COMMUNITY • LIHEAP • Homelessness Prevention • Head Start/Early Head Start • Youth Transition Housing • ESL • Family Shelter Program • HSE • Community Housing in Partnership • New Americans • Food Bank • ServSafe • WIC • Weatherization Training • SNAP • WAP • Healthy Families • Home-Safe Lead Remediation • Family Self Sufficiency – FSS • Financial Counseling • CAP Credit Union • Housing Counseling • Health Services • Economic Security Initiative • Solar • Landlord Tenant Guidance • More…
The Cap Solar Website http://www.capsolar.org Use the Opportunity Zone Fund Map to search by address (desktop only) Submit a project opportunity (individual, or upload multiple files) Submit addresses and descriptions of addresses and we will do the analysis. Learn more about Cap Solar. Contact Cap Solar / Online Chat. Email: projects@capsolar.org
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