Patented and Patent Pending
Patented and Patent Pending
Patented and Patent Pending
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.
True Innovation
Patented and Patent Pending
Patented and Patent Pending
Leasing has been difficult for renewable energy, and in particular for wind. The production tax credit requires active ownership whereas leasing implies passive ownership.
First of its Kind
Patented and Patent Pending
First of its Kind
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.
OCC Net Lease
US$1 Trillion Leasing Industry
First of its Kind
Banks are much more comfortable investing when the investment is classified as a Net Lease for bank regulatory purposes.
Less Economic Capital
US$1 Trillion Leasing Industry
US$1 Trillion Leasing Industry
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.
US$1 Trillion Leasing Industry
US$1 Trillion Leasing Industry
US$1 Trillion Leasing Industry
Project Sponsors can now access a much larger pool of capital.
Advantages of the Wind Lease
- 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.
Learn More ___________________________________
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.
Please email: david@jupiterrenewables.com