Project developers seek third party equity and debt financing to leverage their own internal resources, make efficient use of tax incentives, improve project equity returns, and to focus their own capital on project development. Some developers sell their projects outright; others seek ongoing ownership or royalty interests. Developers should choose financing structures consistent with their project ownership strategies and financial strength.

The federal and state governments offer an unprecedented array of project-oriented financial incentives to encourage renewable power projects. Some incentives are working; others are not. Experienced developers target those viable incentives that make sense for their own projects. Distributed-scale project developers, a market segment that barely existed two years ago, struggle to adapt structures and sources to finance medium-sized projects.

In the last two years, the financing landscape has changed radically. Previous leading financiers disappeared or cut back their activity. New ones are emerging. Tax equity remains scarce; debt financing is recovering. Changes in the federal tax incentives oblige a rethinking of efficient financing structures. New (and sometimes old) financing structures are being used. Developers need to recognize these changes to close financing for their projects.

Birch Tree Capital can assist renewable power project developers to:

• Identify off-take, ownership, and financing structures most likely to attract equity and debt financing.
• Create corporate and project-level financial models to screen project prospects and conduct uncertainty and sensitivity analyses.
• Identify suitable co-developers, strategic and institutional investors.
• Assist in negotiating financing commitments and definitive agreements.
• Coordinate investor due diligence.
• Mesh finance, tax, and accounting asset management needs with front-end project due diligence.