| Todays Speakers Brandon Deno Bruce Chandler Vice President, - - PowerPoint PPT Presentation
| Todays Speakers Brandon Deno Bruce Chandler Vice President, Solar Business Development, Solar 9 years solar experience 7 years solar experience Former country manager for Formerly with Zep Solar, AUO/BenQ Solar SolarBridge,
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Brandon Deno Vice President, Solar § 9 years solar experience § Former country manager for AUO/BenQ Solar § Over 100 MW in solar system and component sales Bruce Chandler Business Development, Solar § 7 years solar experience § Formerly with Zep Solar, SolarBridge, and Sunlink
Today’s Speakers
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Growth has been flat compared to Residential and Utility segments
Commercial Solar Market
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Source: SEIA/GTM
Utility Residential Commercial
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Existing options are not enabling market growth, the problems:
Plus, a high percentage of commercial properties are leased… Cash Purchase
§ Require cash
PPA’s
§ High credit standards and system size restrictions § Complex contracts, long term commitment required, difficult to transfer § Overall economics are just barely compelling
Leases
§ Moderate credit standards § System size restrictions § Negative cash flows or balloon payments
Bank Loans
§ Short terms, interest rate risk § Negative cash flows or balloon payments
Existing Commercial Solar Financing Options
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CleanFund’s has Created SolarPACE !
TM
TM
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§ Founded in 2009 by PACE financing pioneers § 100% focus on Commercial PACE § Team of experienced structured finance, real estate, banking, construction, and solar professionals § Track record of originating, underwriting, and financing PACE transactions across the country § Direct capital provider (not a broker) § National coverage with headquarters in the San Francisco Bay Area
Commercial Real Estate Solar Energy Energy Efficiency
Construction and Engineering
PACE Programs Structured Finance Municipal Finance Lender
Relationships
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About CleanFund Commercial PACE Capital, Inc.
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§ Used on private projects that qualify as being for the Public Good § Private capital is typically used with negligible fiscal impact to municipalities
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§ PACE has achieved strong growth nationwide § Legislation passed in 33 states & D.C. § 44 PACE programs created or being developed
What is PACE Financing?
§ Property Assessed Clean Energy § Legal framework for financing energy efficiency and renewable energy projects through property tax assessments – repayment via property tax bill
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§ Created specifically to finance solar on commercial properties § Solves most commercial credit issues § Available for projects down to $100K (approximately 30kW) § Flexible options to utilize tax credits § Terms that maximize cash flow § Product supported by team of solar and PACE financing experts
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CleanFund’s Solution: SolarPACE™ Financing
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How SolarPACE™ Works for Property Owners
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Financing up to 30 years
To match the productive life of the solar system and unlock steadily increasing positive cash flows. Not on the credit of the property owner, significantly opening up addressable market.
Credit decision based on property value Financing stays with the building
Just like the PV system, and delivers positive cash flows to a new owner if the property is sold.
Roofing and Storage are financeable
Energy efficiency measures that are ancillary to a solar project like roofing and storage can be financed.
SolarPACE™ Key Features
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Delivers positive cash flows
The long term of SolarPACE™ typically immediately cash flow positive even before factoring in solar tax benefits. To improve cash flows if needed or desired.
Option to partially pay down principal by ITC Option to provide tax equity via a PPA
For customers without tax appetite. The PPA is prepaid with the SolarPACE™ financing proceeds and repaid via the annual PACE payment.
Solves split incentive problem
By giving property owner tax incentives to put solar on property while tenant gets electricity savings.
SolarPACE™ Key Features (cont.)
| SolarPACE Cash Purchase PPA Capital Lease Operating Lease
Financing matches system life Immediate positive cash flows Cash flow positive every year Tenant pass through Automatic transfer Easy credit approval, no personal guarantees Tax benefits directly received by property owner Flexibility to reduce annual payments No balloon payments Preserve internal capital Can finance non-solar property improvements 6 – 18 months of savings before first payment
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Yes Maybe
SolarPACE Advantages vs Traditional Solar Financing
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Bill: INCREASE DECREASE DECREASE NET SAVINGS
Over next5 years:
$200,000 $220,000 $320,000 $340,000
Property Tax Bill $ ________ ________ Utility Bill $ ________ ________ Income Tax Bill $ ________ ________
Assumptions: 200 kW system, installed cost of $2.60/W, current $0.15/kWh utility electricity rate, 30 year financing term
+ Ongoing, increasing annual savings every year over remainder of term! (starting at 14% in year 6) * Equal to a fixed rate 30 year PPA at $0.112/kWh
Project Example: Accelerating Cash Flow with SolarPACE™
200 kW system
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Consultative Partnership Approach
§ CleanFund works closely with partners to help close deals § Customized modeling and for best economics
§ Fast turnaround on proposal generation
Complete Management of Financing
§ CleanFund handles all aspects of the financing, including property appraisals, existing lender acknowledgement, and documentation
Construction Financing
§ Milestone payments made after close of financing § Distributor partnership that reduces credit line concerns
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Detailed economic modeling
Working with CleanFund
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Working with CleanFund - Let’s Get Started!
Project Assessment and Scope Approvals and Underwriting Funding and Construction
1) Request proposal: Basic solar project information needed for analysis 2) Customer submits financing application when ready to proceed 3) Full underwriting, from application to closing, can be 1-2 months
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Commercial Solar is Poised for Growth
Source: SEIA/GTM
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SolarPACE™ is the Perfect Solution for:
Non- investment grade credits Customers who want solar tax incentives Non-profits Customers that don’t want to pay cash Leased properties Any project
Foreign
properties or businesses Properties that may be sold in the next 5+ years
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Contact us: HEADQUARTERS
2330 Marinship Way Suite 100 Sausalito, CA 94965 www.cleanfund.com (415) 256-8000 info@cleanfund.com
CleanFund.com/SolarPACE
Q&A and Thank You!
Zero up front costs Immediate savings, tax benefits and positive cash flow Long term financing that matches the life
installation Simple billing
bill Benefits for both property