CleanView Capital Financing a clean energy future™ Clean Energy Ownership Program Energy Cost Reduction + Value Creation www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
CleanView Capital Making Clean Energy Ownership Affordable Financing a clean energy future™ Solar, batteries, wind, CHP energy systems and microgrids! • No upfront capital outlay. • 100% tax-deductible, fixed payments, no escalation. • No interest paid. • Ownership at discounted price after years 6 and 7. A low-cost path to ownership at an affordable price! www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
Energy Cost Reduction CleanView Capital + Financing a clean energy future™ Value Creation Companies keep: • Full utility savings: • Greater than 20% cost reduction. • Low levelized cost of energy (LCOE). • RECs & all environmental benefits. • All incentive payments: grants, PBI. • Companies obtain value from tax benefits. www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
CleanView Capital Program Features Financing a clean energy future™ • 9-year investment strategy: “Lease & Loan to Own” • 7-year ”traditional” lease: a low-cost path to ownership. • 2-year loan: purchase financing maintains low payments. • Progress payments without construction loan: no interest. www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
CleanView Capital Leasing as a Method of Financing Financing a clean energy future™ • Savvy business owners and CFOs prefer to own solar and clean energy systems when they can obtain long-term value and the purchase is affordable (fits within budget). • A lease is used to eliminate upfront capital investment and provide a low-cost path to ownership at an affordable price. • In this way, a “ traditional” lease with attractive purchase options serves as a “de facto” method of financing a company’s acquisition of a clean energy system. www.CleanView Capital.com * IBESA U.S. Storage Day * September 10, 2017
CleanView Capital What is a Lease? Financing a clean energy future™ • A lease is a usage agreement (aka rental agreement). • Owner of property (Lessor) conveys to another (Lessee) the right to use the property for a period of time (term) in return for a consideration (payments). • Purchase option exercised or property returned. • Typically triple net (Lessee responsible for insurance, maintenance, and property taxes). • Not borrowing money. • Payments 100% tax-deductible. www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
Leasing: Tax Credit CleanView Capital Monetization Solution Financing a clean energy future™ • Solar projects are not undertaken when a company cannot derive value from the federal ITC. • LLCs and S Corps cannot use a tax credit. • ITC passed through to company owners does not conserve cash where needed, in the business. • An operating lease (aka tax lease) solves this problem when Lessor monetizes the ITC and shares the value with the company (Lessee). www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
Cost Comparison: CleanView Capital Operating Lease vs Loan Financing a clean energy future™ Solar Lease Amount: $ 1,000,000 Operating Lease Loan (No Interest) (6% Interest) Monthly Payment 8,100 Monthly Payment 14,538 # Months X 84 # Months X 84 Total Payments 680,400 Total Payments 1,221,192 Purchase (FMV = 15%) + 150,000 Purchase (included above) 0 Total Paymts & Purchase 830,400 Total Paymts & Purchase 1,221,192 Tax Savings (35% tax rate ): Tax Savings (35% tax rate): ITC - 0 ITC (30%) - 300,000 Monthly Payments - 238,140 Interest - 77,417 MACRS Depreciation - 52,500 MACRS Depreciation - 297,500 After-Tax Cost 539,760 After-Tax Cost 546,275 www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
“Traditional” Lease CleanView Capital vs. Bank Loan Financing a clean energy future™ • 100% project cost vs. possible loan to value limit. • No compensating balances. • No restrictive financial covenants. • Preserves existing bank lines. • Banks may require additional collateral (liens). • Lease Conserves Cash. More cash in Lessee’s hands improves balance sheet ratios, and profitability when invested in the business. Leasing: A powerful cash management tool ! www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
7-Year “Traditional” Lease CleanView Capital vs. 20-Year PPA or Financing a clean energy future™ Solar Industry Lease • Fixed payments with no escalation. • All utility/government incentive payments to customer. • Full displaced cost of electricity is savings to customer. • No lien on real estate. • 4-page lease vs. 20 pages or more. • Quick, low-cost path to ownership. • Greater overall value for customer. Leasing as a low-cost method of financing! www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
CleanView Capital “Traditional” Lease vs. PACE Program Financing a clean energy future™ • Lease solves the ITC monetization problem- Not PACE. • No lien on real estate. • No interest paid. • Credit-based vs equity-based approval. • Simple, familiar 4-page lease documentation. • Quick, low-cost path to ownership. • Lease provides greater overall value for customer. Leasing as a low-cost method of financing! www.CleanViewCapital.com * IBESA U.S. Storage Day * September 10, 2017
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