non-profit solar alliance a proof of concept pilot project for community-based solar
TRANSCRIPT
Non-Profit Solar Alliance
A Proof of Concept Pilot Project for Community-Based Solar
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Overview
Non-Profit Solar Alliance (NPSA) is a small, “proof of concept” pilot project involving the aggregation of several community-based solar installations in Northern California under a single ownership LLC utilizing Section 48 ITCs
Sites include a homeless shelter, a community theatre, and three affordable condominium projects
Sponsor is Northern California Land Trust, a developer of rental, cooperative, and condominium projects that provide permanently affordable housing for low-income people
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Desired Outcomes
Off-Takers Affordable Energy More Predictable Energy Costs Long-term, ownership of panels
Northern California Land Trust Proving Concept Providing affordable solar to their developments
Enterprise Community Investment Inc. Environmental commitment Innovating structure for pilot
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Sources of Funds
ITC equity $ 250,000
Rebates $ 232,000
Loan from NCLT $ 327,000
Total $809,000
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Structure of Transaction
NP Solar Alliance LLC-owns PV, sells power to Service RecipientsEnterprise NP Solar Community Alliance Investment, Inc. Corp, 99.99% Investor 0.01% Member Managing
Member
Enterprise Community Investment, Inc.-provides equity-receives 99.99% of ITC, depreciation
Northern California Land Trust (NCLT)-for-profit subsidiary is managing member of NP Solar Alliance LLC-borrows funds from Off-Takers-lends borrowed funds to LLC-receives loan payments from LLC-makes loan payments to Off-Takers
Off-Takers -lend funds to NCLT-lease rooftops to LLC-purchase PV power from LLC
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Issues/Challenges
Scale Standardization of Documents “Investment Grade”?
Economics: Going rates for grid electricity vs. rebate/subsidy structure
Tax-Exempt Sponsor Structuring of Sponsor/Off-Taker Loan Property Insurance Consumer Law in Installation involving Condo Buyers Disposition
