Project developers seek third party equity and debt financing to leverage their own internal resources, use tax incentives, improve project equity returns, and to save their own capital on project development. Some developers sell their projects outright; others seek ongoing ownership or royalty interests. Developers should choose financing structures consistent with their project ownership strategies and financial strength.

The federal and state governments offer financial incentives to encourage renewable power projects. Developers need to target those incentives that make sense for their own projects.

The financing landscape continues to evolve and deepen. High-quality utility-scale projects have renewed access to tax equity and debt financing. Distributed commercial-scale solar project developers, a market segment that barely existed a few years ago, struggle to find structures and sources to finance their projects.  Emerging financing options, including boutique investment funds, REITs, MLPs, crowd-funding, and C-PACE programs, need to be considered. Developers need to recognize these changes to close financing for their projects.

Birch Tree Capital can assist renewable power developers to:

  • Identify off-take, ownership, and financing structures most likely to attract equity and debt financing.
  • Create corporate and project-level financial models to screen project prospects and conduct uncertainty and sensitivity analyses.
  • Identify suitable co-developers and other investment partners.
  • Assist in negotiating financing commitments and definitive agreements.
  • Coordinate investor due diligence.
  • Mesh finance, tax, and accounting asset management needs with front-end project due diligence.