Clean Energy Project Investment Structuring
How SolRiver Invests In Projects
SolRiver makes investments in developers and installers with qualified projects. For us, a qualified project is one that has a clear path to commercial operation. Typically, we partner with developers after they’ve signed a PPA or equivalent offtake agreement with a creditworthy energy customer.
What is a Clean Energy Investment?
A clean energy investment is a capital contribution by a clean energy investment fund into the installation of an energy system in exchange for a share of the income earned from the PPA customer and tax benefits from the system. SolRiver structures our investments to cover all costs incurred in bringing the project to COD.
Common Investment Deal Structure
SolRiver Capital is open to a variety of transaction structures. In the most common deal, we purchase 100% of the ownership interest in a project company. Our total Project Investment is the amount needed to cover EPC costs and a Developer Fee. After we purchase the project company, we comply with the requirements of the project agreements to build the system and sell power to the customer. We then collect the long-term contracted energy sales under the PPA, which repays SolRiver’s initial investment.
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Clean Energy Investment Agreements
When SolRiver buys a project, we enter into a project company purchase and sale agreement (“PSA”) with the developer. In addition to the PSA, the project company must have a handful of other agreements in place to satisfy our project diligence checklist. An example of the other agreements negotiated as part of the Clean Energy Investment are discussed below:
An agreement describing our partner’s responsibilities in monitoring and completing the project. The Developer Fee or “Dev Fee” paid under this agreement reflects the value of setting up the project as well as overseeing completion.
Of course, we can acquire projects outright at NTP. If the Developer does not want to participate in the construction process, we can bring in an EPC-partner to take over.
Let us know your preference when you reach out, and we can tailor an offer to suit your objectives.
Purchase and Sale Agreement
The PSA transfers 100% of the membership interests of the project company to SolRiver in exchange for the agreed purchase price.
- This agreement is executed prior to issuing Notice to Proceed (pre-NTP).
- We capitalize the Project Company to fund the Development Capital, Construction Finance, and final Takeout Investment required.
In order to ensure the system operates at acceptable levels during the course of the PPA term, SolRiver requires operating and maintenance agreements to be in place.
- We structure these agreements on an “as-needed” basis. When service is required, SolRiver will call upon the O&M provider and make payments accordingly.
- This agreement can be with you or a third-party depending on the project.
EPC Contract (if applicable)
A turnkey construction contract outlining the scope of work, equipment procurement, system design, and commissioning of the project. This agreement can be with you or with a third party.
Unlike other investment groups, SolRiver prefers to let our partners keep the relationship with the offtaker.
- We’ll pay you an annual fee for acting as “front-line” support with the customer.
- SolRiver can take on this responsibility if needed, however, we encourage everyone to exercise this option and maintain their customer relationships.
Let’s Discuss Your Project
We’re ready to look at your project. To get in touch with us, pick the option below that’s easiest for you.
Submit via Form
You can also use our online project intake form. Answer a handful of questions about the project,
Use Excel Sheet
Alternatively, we can provide you a short Excel worksheet with our project inputs.