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June 19, 2013 Agenda What is CEFIA Examples of Program and Project - - PowerPoint PPT Presentation
June 19, 2013 Agenda What is CEFIA Examples of Program and Project - - PowerPoint PPT Presentation
Clean Energy Finance and Investment Authority Clean Energy Incentive Programs CBIA Environment & Energy Conference June 19, 2013 Agenda What is CEFIA Examples of Program and Project Investment Opportunities Smart-E Loan
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The Old Clean Energy Fund Model Limited Financing Tools
Grants and Incentives Grants Loans Equity
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CEFIA – the First “Green Bank” All Purpose Financing Tools
Financing energy efficiency projects Bonding Securitization Grants Loans Public-Private Partnerships Credit enhancements
Finance and Investments
Community Development Financial Institution Energy savings performance contracts Commercial and Industrial PACE (C-PACE) Energy consumption data Tax Equity Funds
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Comprehensive list of eligible measures and eligible contractors Robust QA/QC Process Affordable Private Capital More Energy Savings Any measure (or combination) that qualifies for CEFIA, utility or CEEF incentive or rebate qualifies
Any contractor already qualified by CEFIA, utilities, CEEF, CHIF or BPI is eligible 20% of total amount financed can be used for related, non- energy measures like asbestos remediation or roof repair Projects must pass technical check before lender closes loan All large projects inspected
- nsite before lender remits
final (2/3) payment to contractor Smaller projects randomly inspected Not to exceed rates: 5-yr 4.49% 7-yr 4.99% 10-yr 5.99% 12-yr 6.99% No prepayment penalty Loans of $3,000-$25,000+
Smart-E Loan
Overview
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Solar Lease
1.0 versus 2.0
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CT Solar Lease 1.0 Award-Winning
$44.3M Total Hard Costs $7.07/Watt Installed Cost 6.3MW Solar PV Installed 855 Leases Fees / Investment "lost" 1 : 1 Private $ : Ratepayer Investment Subsidy out: $22.6M Subsidy back: $0
CT Solar Lease 2.0
~$65M Total Hard Costs $4.21/Watt Installed Cost 14.1 MW PV and 5K MMBTU SHW ~2,000 Leases (& PPAs) Fees / Investment returned to CEFIA (Ratepayers) >5 : 1 Private $ : Ratepayer Investment Subsidy out: $16.5M Subsidy back: ~$15-$16M
Residential Solar PV only Residential + muni/school/NFP + "A" commercial -- PV & SHW
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CT Solar Lease 2 LLC
CEFIA
First Niagara Bank (Lead) Liberty Bank Webster Bank People’s United Bank
(Debt)
US Bancorp
(Tax Equity)
Blocker (Taxable)
(Managing Member)
Installers
PV Systems
AFC First
(Servicer)
CEFIA Holdings
(Developer)
CT Innovations
Sub-debt $2.3 mm Equity $11 mm* Debt $26 mm Tax Equity $24 mm Buy PV Systems Sell PV Systems 10%** Installation Services
Solar Lease 2.0
Proposed Structure
Upon completion and approval of a PV System, the PV System flows through the Developer and into the fund instantaneously.
90%
*Equity contribution of $11 million includes $3.5 million in ARRA Reserve funds. **Pursuant to its statutory authority, CEFIA may only establish a subsidiary with another
- entity. As such, CT Innovations has agreed to
take a small non-active participation role in CEFIA Holdings. Please note that CEFIA is the sole managing member of CEFIA Holdings.
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C-PACE
Overview
“Commercial Property Assessed Clean Energy”
▪ Innovative financing structure that enables commercial, industrial, and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax. – Private sources of capital provide 100% upfront, low-cost & long- term funding for qualified energy upgrades – Allows repayment through property tax assessment over 20 years – A senior PACE lien is put on the property and stays with the property regardless of change in ownership.
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C-PACE
Benefits
Project Capital Providers
- Provides low risk
investment
- pportunity:
- Senior lien
- Association with
secure payment stream (taxes)
- Legal and technical
structure administered by CEFIA
- Potential CRA credit
Property Owners
- Gives access to low
cost, long term financing to improve building energy use
- Automatically
transfers in the event
- f a sale
- Improves
attractiveness and comfort of property
- Solves split incentive
problem Existing Mortgage Lenders
- Lowers operating
costs for building
- SIR must be >1 to
qualify
- Non-accelerated
- bligation
- Creates a more
attractive building for occupants
- Creates a more
attractive building for future owners Municipalities
- Reduces energy
costs for businesses
- Reduces pollution
- Creates economic
development
- pportunity,
including job creation
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Bridgeport Fuel Cell Park
Construction + Installation, 13.5 Service + Operation, 4.75 Initial Manufacturing, 93.8 Replacement Manufacturing, 12.5 Interconnect Construction, 10.4
20 40 60 80 100 120 140 160
Private Capital Investment Jobs Created
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New York follows Connecticut’s lead
“The New York Green Bank would overcome a number of obstacles and uncertainties in the clean energy sector, including unstable federal funding and policy, uncoordinated action and disparate
- ne-time subsidies at the state level, a lack of
appropriate financial instruments, and apprehension in the investor community.”
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