Jupiter Renewables                                             
  • Jupiter is utilizing its patented guarantee structure and its patent pending lease risk management system to create a Single Investor Lease that is a lease for regulatory purposes but a service contract for tax purposes. This maintains the integrity of the Production Tax Credits.
  • This structure is evolutionary rather than revolutionary as it builds on precedent.
  • There are many precedents for the use of service contracts for wind and solar.
  • Relies on existing safe harbor for Service Contracts
  • Weighted average cost of capital is competitive with YieldCos. This makes the structure ideal for YieldCos that want to optimize their deployment of equity.
  • Credit enhancements bring the lessee’s credit to an “A” level and reduce the amount of cash equity. Sponsor provides requisite construction equity which converts to operating reserve post-COD.
  • The high advance rate combines with higher returns. Based on an 85% advance rate, which is typical for this structure, a YieldCo or other developer could develop 3 X the number of wind farms using the same amount of equity and with a higher net present value.