Project developers seek third party equity and/or 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 an ongoing ownership share. Developers need to understand the financing options available for their projects.

The Federal and state governments have created an unprecedented mosaic of project-oriented financial incentives to encourage renewable power projects. Some incentives are working; others remain works-in-progress. Developers need to understand such incentives to optimize project returns.

In the last year, the financing landscape has changed radically. Previous market leaders in extending financing have disappeared or cut back their activity. Commercial distributed PV project developers, a market segment that barely existed two years ago, struggle to find financing. Changes in Federal tax incentives have obliged a rethinking of efficient financing structures. New (and sometimes old) financing sources are emerging. Developers need to recognize these changes to close financing for their projects.

Birch Tree Capital can assist renewable power developers to:

• Identify off-take, ownership, and financing structures most likely to attract third party equity and debt financing for a developer’s project pipeline.
• Create financial models to screen project prospects.
• Identify suitable co-developers, strategic, and institutional equity investors.
• Craft equity letters of intent and definitive documentation.
• Facilitate due diligence review process with prospective investors.
• Identify and assist in retaining other advisors, e.g., legal, independent engineer, insurance, land, tax valuation.
• Review financeability of power and REC purchase agreements.
• Assist in tapping construction debt financing sources.