Financing for Clean Energy Entrepreneurs

To succeed in this fast-paced industry, entrepreneurs and project developers need access to financing. This panel will focus on creative financing models that can create win-win solutions within the current regulatory landscape.Moderator: Alec Guettel, Co-founder, SungevityPanelists Doug Beebe, VP of Energy Finance, Key Equipment FinanceEric Cohen, Senior Commercial Relationship Manager, Fifth Third BankMelissa Malkin-Weber, Green Initiatives Manager, Self-Help Credit UnionDavid Scoglio, Chief Financial Officer, Strata Solar

UNC Friday CenterRedbud Auditorium

Alec Guettel

Co-founderSungevity

Key Equipment FinanceEnergy Finance

Overview

NC Clean Tech SummitDoug Beebe

Vice President, Energy Finance

Clean Energy Finance Trends• Clean energy is financed in many creative ways

• Traditional companies are doing it – no longer a fringe business

• Renewables are more economical than ever

• Shift from environmentalists to business people

• Clean energy is growing rapidly and needs your help!• Get involved!• We need more people like you working in clean energy!

• Traditional bank succeeding in a non-traditional space

• Started in 1858 in Cleveland/ Publicly traded on NYSE: KEY

• Top 20 Bank: Among nation’s largest, well-capitalized

• $92.9 Billion in Assets

• Expertise in customized energy lease transactions

• Key Equipment Finance (KEF) is a subsidiary of Key Bank, based in Superior, CO (near Boulder, CO)

Key Bank

Key Energy Practice

• $1 Billion + energy portfolio

• 80 + wind and solar finance transactions

• Financing energy assets since the 1990’s

• Leasing and Project Finance

• KEF markets the energy lease product

Key Equipment Finance profile• Key Bank’s Leasing Business• $9.1 billion in assets • $4.3 billion of originations • 540 employees globally• Market specialization:

– Energy

– Key Government Finance– Information Technology– Healthcare– Specialty Vehicles– Corporate Aviation– Other verticals coming soon!

• www.keyequipmentfinance.com

Classification - 8

Community Bank

CorporateBank

Loans*Leases*Treasury ManagementDeposits

Local Market Knowledge*InvestmentsPrivate BankingRetail Banking

Industry Expertise*Financial AdvisoryCapital Markets*Investment Banking

Products and services

*Creates Synergies with Key Equipment Finance

KEF leasing capabilities• Alternative to PPA financing• Incentives belong to the lessee/ end user• 100% Financing• Direct, full-recourse leases and loans

– Capital lease / Non-tax lease – Operating lease / Tax lease

• Tax structure expertise• Can offer caps for FMV purchase options

– Synthetic Lease • Hybrid of Capital and Operating Leases

– Loans• 7 – 10-year terms • Transaction size: $250,000+, no maximum • Construction financing• Syndication to broaden tax and risk appetite

Classification - 9

PPA and Lease Comparison

Classification - 10

PPA/ ESA Operating Lease

Capital Lease / Loan

Low-cost funding

Quick and efficient underwriting process

Customer takes tax benefits

Investor takes tax benefits

PBI / SREC / FIT direct to customer

PBI / SREC / FIT direct to investor

Bundled approach/ undisclosed costs

System ownership with customer

Permitted / Feasible in all 50 U.S. States

Reduced/ Streamlined documentation

Doug Beebe

VP of Energy FinanceKey Equipment Finance

Eric Cohen

Senior Commercial Relationship ManagerFifth Third Bank

Melissa Malkin-Weber

Green Initiatives ManagerSelf-Help Credit Union

David Scoglio

Chief Financial OfficerStrata Solar