Guaranteed WindPower® System
Net Lease
The Guaranteed WindPower® financing qualifies as a Net Lease for bank regulatory purposes, providing superior economics and accounting treatment for all parties.
What Is a Net Lease?
A Net Lease is a lease agreement in which the lessee (tenant) pays rent plus some or all of the property expenses that normally would be paid by the property owner. In the context of renewable energy financing, the Net Lease structure provides the tax equity investor with the benefits of classic leveraged leasing while qualifying as debt for the tax investor and as a Net Lease for bank regulatory purposes.
Key Benefits of the Net Lease Structure
Superior Economics
The Net Lease structure delivers the superior economics of classic leveraged leasing, maximizing returns for all participants in the financing.
Favorable Accounting Treatment
The financing qualifies for favorable accounting treatment, providing off-balance-sheet benefits that are highly valued by tax equity investors.
Bank Regulatory Compliance
The structure qualifies as a Net Lease for bank regulatory purposes, making it accessible to a broader range of institutional investors.
Debt Treatment for Tax Investors
The financing is treated as debt for the tax investor, providing additional flexibility and favorable tax treatment throughout the life of the project.
Learn More About Guaranteed WindPower®
Contact Jupiter Renewables to discuss how the Net Lease structure can be applied to your renewable energy project.
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