Maximizing Financial Market Exposure

Current Financing Trends in DG
Maximizing Financial Exposure
Chris Lamonia, CalcoGreen, LLC
CalcoGreen, LLC
Who is CalcoGreen?
Our Mission is to create innovative products and services that encourage
renewable energy and energy efficiency deployment and to use our
experience to provide the tools to enable greater development of
distributed renewable energy projects.
CalcoGreen, LLC
Management Team
Chris Lamonia, President
Robert Aldridge, Executive Vice President
William Basa, Vice President of Acquisitions
Strategic Advisors
Paul W. Lamonia, Lamonia & Associates
Strategic Planning
Jason Carney, Palatine Capital Partners
Finance strategic growth initiatives
Todd Lamonia, Intellifed Corporation
IT and technology
Financing Trends in DG Wind: How have DG
Wind Projects been Financed to Date?
Every Structure Imaginable has been
Tried including:
Debt
Equity
Leases
PPA
Lack of focus to date
Wind projects can be broken down into
two parts which match financing options
Short Term Bridge and Construction
Long Term Take Out
Financing Trends in DG Wind: Short Term Finc
Phase 1: Preliminary Stages (can be costly
depending on size and location)
Wind project
ready to break
ground
Initial wind project stages
and planning process
Process varies town
to town state to state,
varying risk
Building
permits
approved
Phase 2: Procurement and
Construction Stages (is always costly)
Interconnect
application
approval
Project ready for
Construction Funding
Financing Trends in DG Wind: Short Term
Wind project
ready to break
ground
$
Project ready for
Construction Funding
Types of Construction financing options
available
Debt / loan / finance lease
Long term Financing Progress
Payments Progress payments made
from long term take out financing,
never 100% prior to completion
Equity
PPA: third party cash flows whole
project, economics historically have
have to be very aggressive under
1MW wind, wind speeds and
production values, incentives, etc.
Financing Trends in DG Wind: Long term
Financing
Credit Risk need to be assessed
Incentives play big role in Economics of a DG wind
99% of behind the meter net metered projects are competing with cheap grid
power
Current incentive climate:
State Incentives: grants, tax incentives
Federal Incentives: tax focused
Perfect Funding Options
What type of financing takes most advantage of incentives to create the most
favorable economic argument for positive returns in the quickest period of time.
Tax
Equity
Low
interest
Off
balance
sheet
Long
terms
Perfect
funding
option
Financing Trends in DG Wind: Long term
Financing, Current Options Available
Debt, Loan, Finance Lease
Tax
Equity
Low
interest
Off
balance
sheet
Long
terms
Off
balance
sheet
Long
terms
Perfect
funding
option
Equity, Operating Lease & PPA
Tax
Equity
Low
interest
Perfect
funding
option
Financing Trends in DG Wind: Long term
Financing: Most Prevalently used Option
Operating Lease
Make it easier on yourself
Taking existing equipment leasing model is most prevalent today
Take advantage of monetizing tax benefits, reduce monthly payments
Behind the meter applications work well with this model
Tax
Equity
Low
interest
Off
balance
sheet
Long
terms
Perfect
funding
option
Financing Trends in DG Wind
Does the “Perfect Funding Option” Exist
Perfect
funding
Option
Good
funding
option
What is our future after incentives?
Tax
Equity
Low
interest
Off
balance
sheet
Long
terms
Perfect
funding
option
Maximizing Exposure
Wind turbines have been around for a long time
WTG’s , DG, CommWind is relatively new
Cap markets like the concept, there is real interest
How do we get beyond the “real interest” phase
Scientific American, 1891
As an industry/association we need to continue to search
for the “Perfect Funding Option”.
HOW?
Prove that there is a scalable funding opportunity
Maximize exposure to the capital markets
BILLION DOLLAR OPPRORTUNITY
Perfect
funding
Option
Maximizing Exposure
The Renewable Energy Classified Exchange
www.reclassified exchange.com
Bring together financial markets and DG
Community Wind
Generate Exposure to your project
Generate Exposure to DG and CommWind to
Financial Markets
FREE unlimited listings
Maximizing Exposure
Other Ways to Maximize exposure for your project
Crowd funding
Social media
Chris Lamonia, President & Founder
CalcoGreen, LLC
877.943.3943 ext.702 (o)
802.777.7513 (c)
877.943.3943 ext.4 (f)
clamonia@calcogreen.com
www.calcogreen.com
Rob Aldridge, EVP Business
Development and Syndications
CalcoGreen, LLC
503.980.1380 (o)
503.510.5206 (c)
877.943.3943 ext.4 (f)
raldridge@calcogreen.com
www.calcogreen.com