Technologicaal innovation in renewable energy deserves innovation in financing. The wind lease delivers the lowest cost of capital in a form that is treated as debt by tax investors.
Leasing has been difficult for renewable energy, and in particular for wind. The production tax credit requires active ownership whereas leasing implies passive ownership.
Jupiter has developed a patented structure for shifting risks for wind power that provides the foundation for creating a wind lease (US Patent number 7,853,461). The Net Lease module of the structure is patent pending.
Banks are much more comfortable investing when the investment is classified as a Net Lease for bank regulatory purposes.
Less regulatory capital is required. For example, JP Morgan holds $13 billion in reserves for their current tax credit investments. They would only have to hold a fraction of this for a lease. And they can own leases as part of their regulated banking business.
Project Sponsors can now access a much larger pool of capital.
Jupiter is pleased to provide analyses of any project in order to demonstrate the benefits of this structure for any potential project participant.
Jupiter is partnering with top investment banks, private equity firms, and sponsors and is always looking for new partners.
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