Alternative Energy, Renewable Energy, Green Energy, Clean Energy, Sustainable Energy
Power Purchase Agreement (PPA) Financing; Off-Take Agreement Financing.
Although financing can come in many different forms for wind, solar, and other renewable energy projects, the various types of financing typically include PPA's, FIT contracts, debt, equity, acquisition, sale-lease back financing, debt/equity combination, etc.
We have sources that can potentially provide financing for USA and International Alternative Energy and Renewable Power Projects utilizing the ability to fund a project based on the contract(s) that a Client has secured.
Through our network, CFI has the potential to provide PPA Financing for a project or company with investment grade entities worldwide. The investment grade entity may be a governmental agency, local municipality, feedstock provider, off-taker power purchaser, a technology provider, Contractor, JV Partner, etc.
This type of lending is not project specific but it is based typically on the credit worthiness of the investment grade entity involved in the project (BBB or higher on S&P or Baaa or better on Moody’s).
Generally speaking, there are four types of PPA’s or Off-take agreements:
1. Utility PPA: in the case of utilities, they will have their own form of PPA and, usually, do not allow modifications; however, utility PPA’s will normally be accepted by an investor’s legal counsel and are normally very bankable.
2. Feed-in Tariff (FIT): these contracts are set in stone and not modified; however, they are generally the most bankable with investors and their legal counsel. In both cases above, the off-taker is almost always a good credit risk so credit is not usually an issue.
3. Municipal PPAs: with municipalities, schools, etc., these will normally be fully executed and useful for presentation to the investor. These are favored by investors, as well, and the credit risk is normally minimal.
4. Private PPAs: are generally with private or public companies, and normally need to be investment-grade credit to be considered by an investor. In many cases, the investor will require his or her own form of PPA (or a modification of the existing one) so, often times, a developer will get a PPA term sheet to be followed by the investor’s own form of PPA, which the investor’s legal counsel has prepared or approved. In the case of biomass projects, a feedstock or supply agreement tends to accompany the PPA. Financial information such as two years of audited financial statements is often required for credit evaluation.
Monetizing Assets with a Power Purchase Agreement
Commercial and industrial companies could be overlooking potential sources of revenue. A power purchase agreement (PPA) can be used to lessen costs, fund renewable energy development, lower overall utility costs and generate needed working capital.
By entering into a long-term contract with an end-buyer, companies can monetize landfills, waste treatment operations, remote pieces of land, roofs, parking lots, etc. A PPA provides a reliable source of revenue for the length of the contract and it can make the resulting end product more competitively priced on the open market.
Thank you for your inquiry and we look forward to serving your funding needs.
BROKER INQUIRIES ARE WELCOMED AND APPRECIATED.
IMPORTANT: If you are serious about securing funding, please email us a 1 to 5 page Executive Overview or feel free to call us first.
Commercial Funding International, LLC
Mr. Jerry O'Neill, Managing Member
"Real. Smart. Funding Solutions."
Office: (503) 245-2789
Commercial Funding International and CFI are a Trademarks of Commercial Funding International, LLC.