Energy Finance

Our energy professionals will work with you to determine the most appropriate method of financing your energy investment. Many of our clients desire to reduce and control utility expenses while preserving capital for their core business.  Allana Buick & Bers can help implement multiple financing solutions that often require zero up-front capital, creating immediate savings.  Depending on the size of your organization and whether you have a governmental or commercial organization, financing terms and options will vary. Our building performance financing options include:

  • Performance contracting
  • Immediate positive cash flow
  • Zero up-front capital required
  • Off-balance sheet solutions
  • Increased property valuations
  • Proper budgeting of operations, maintenance, and replacement
  • Control of escalating utility rates and operating expenses
  • Energy arbitrage – a low-risk, zero-capital hedge against inflation
  • PACE – Property Assessed Clean Energy program
  • REIT Finance Programs
  • Tax Incentives Monetization
  • Utility Incentives Monetizations, Applications, and Submittals
  • Power Purchase Agreements (PPA) and Energy Service Agreements (ESA)

Customers usually finance new solar, renewable projects, and energy efficiency upgrades because of the high upfront costs. In addition, many customers find they cannot use the various incentives, rebates and tax credits to their full potential, or at all. Finally, even if customers have the cash on hand, financing a portion of the initial system cost has the potential to increase the overall return.

Energy and capital markets are undergoing fundamental transformations which are impacting and restricting financing options and availability. It is imperative that customers retain independent energy finance experts with no vested interest in encouraging a particular solution or finance company. We would be happy to assist you in this process.

Financial Analytics

Allana Buick & Bers designs and codes its internal and proprietary financial models that are capable of performing a complete set of financial scenarios. We typically run these scenarios to determine the sensitivity of individual model assumptions, such as power prices, construction costs and etc., on the projects potential return. Finally, we establish the project’s bid ask spread assuming a willing buyer willing seller and prudent investor standards as the basis for valuation. We firmly believe in this approach since it provides a market based range of values for the project.

Energy and Tariff Analytics Experience

Our team members are highly qualified individuals, and together represent over 50 years of combined team experience in providing investment-grade energy analytics across most US states and utility territories, covering tariff analysis and correct understanding and determination of accurate avoided-cost including time-of-use modeling.

Rebate/Incentive Experience

Allana Buick & Bers has developed expertise in incentive structures on both a federal and state level throughout the United States, and works on behalf of clients to apply for and capture many different kinds of rebates and incentives, including successful understanding and application of highly complex tax and regulatory structures.

Structured Financing

Allana Buick & Bers assists its clients in structuring the financing package for proposed energy projects. Allana Buick & Bers offers our clients a complete and holistic financing solution through a well-established network of debt, cash and tax equity providers. Through our understanding of financial structuring and power market expertise, we have the ability to design and market projects to meet lender and investor requirements. Our professionals have experience with government programs and incentives and can guide our clients through program selection and applications.

Allana Buick & Bers and its team professionals can provide the following services:

  • Preparation and maintenance of a financial model suitable for the capital markets
  • Financial structuring of the tax equity component related to the investment tax credits allowed for under the federal tax code, subject to guidance provided by other third parties
  • Assist its clients with the solicitation of capital from tax equity and debt providers and cash equity, as required and including meetings.
  • Preparation of the project’s data room to support the capital raising activities
  • Assistance in the negotiation of the financing package with capital providers
  • Review of the commercial contracts for financing purposes, including the Power Purchase Agreements (PPA), the design build or Engineering, Procurement and Construction (EPC) contracts, O&M and MSA agreements, entitlement package and others
  • Support third parties in the filing of tax returns and other required regulatory filings.
  • Tax equity sourcing from financial institutions, corporations and insurance companies
  • Transaction and project structuring

Allana Buick & Bers structures custom financial solutions to meet client’s unique requirements. Energy systems in the United States and territories are primarily incentivized using tax credits and benefits. In order to maximize such tax benefits, a team with the ability to structure custom financial solutions is a mandatory requirement, and is critical to delivering the lowest possible cost of power per kWh. In particular, energy generation investments are often staged over time, requiring intense coordination between the technical and financial structuring sides of the team.

Capital Sourcing & Structuring

Through years of financial market experience and network development, Allana Buick & Bers’ team has a proven track record providing its clients with capital sourcing and structuring alternatives for energy projects. Our team has a well-developed and mature network of capital providers including private investors, consortiums, financial institutions, corporations and insurance companies. Capital has been provided to projects in several forms including outright sales of the project, partnership flip structures and tax leases. We have also structured cash advances for the renewable energy credits to support the construction of the projects.

Allana Buick & Bers’ extensive expertise allows for us to effectively position projects for capital investment. Working closely with our clients to enhance the investment quality of their projects, Allana Buick & Bers establishes a course of action consistent with the client’s financial needs and expectations. Allana Buick & Bers services includes preparation of offering materials, structuring and negotiation of term sheets, and consulting services for investor’s interests from initial investment offerings to closing. As the owner’s representative, Allana Buick & Bers will provide support services for project development, engineering, legal and other project experts for the drafting of project contracts, and other investment grade materials.

Power Purchase Agreements and Energy Service Agreements

Solar power plants are typically financed using Power Purchase Agreements (PPA) or Energy Services Agreements (ESA). Both the PPA and ESA are agreements between the power plant owner and the electricity buyer in which the buyer pays only for the power produced. There are no up-front costs or down payments required to purchase the equipment or maintain it. Financial savings come from power costs that typically start at or below the current cost of electricity, and increase slower than the rate of electricity cost inflation. PPA’s typically carry 15-25 year terms and customers can buy the system at fair market value at predetermined time periods.

To qualify for most PPA and ESA, solar projects must typically be in the $1 million price range (approximately 250 kilowatt DC system), but we have negotiated agreements and worked with projects as low as 50 kW so we will be able to evaluate, negotiates and help structure available financing options on your behalf, including PPA’s for commercial customers, or debt financing through a direct lease or equipment loan.

Capital Leases and Equipment Loans for Corporate Clients

Specialized capital leases and equipment loans grant ownership of the power plant to the client resulting in substantial tax benefits for the client.  As government clients do not usually pay taxes, this option is better suited for corporations and private organizations. When structured correctly, both of these financing options will increase the return on investment.

Rebates and Tax Credits for Corporate Clients

In order to offset the high initial upfront cost, rebates and tax credits can be used to help corporate clients. Depending on the location of the power plant, rebates and tax credits can cover up to 65% of the starting costs.

Municipal Tax Lease for Municipal Government Clients

The municipal tax lease financing is to government clients what the capital lease and equipment loan is to corporate clients. It provides the benefits of tax benefits of ownership without actually having to own the energy plant or equipment. It’s a highly flexible financing option for renewable energy plants including solar and other forms of alternative energy.

Lease Revenue Bond Financing for Government Clients

Because governments usually do not qualify to tax credits and rebates, revenue bonds are an alternative source to gain initial capital for pursuing an energy project. Revenue bonds for energy projects are a form of long-term borrowing where the savings from lower utility bills can be used to pay off the initial debt or loan.

We assist you by monetizing the depreciation and tax credit/grant in relation to financing. Allana Buick & Bers expedites local and utility rebate incentive applications.

 

PACE Financing and Arbitrage

PACE or Property Assessed Clean Energy Program is a special tax assessment that can be used to finance the upfront costs of energy efficiency or renewable energy projects. It is a form of off-balance sheet financing with zero capital expenditure, as the cost is paid back in increased property taxes over the next 20 years. The increased savings on energy usually offset the increased tax resulting in net gains for the property owner. The property owner benefits from power and utility cost arbitrage and fixed electric costs over the next 20 years.