Financial Solutions to Fit Any Need

IX Energy can arrange a variety of structures to finance renewable energy systems. Our finance team has experience analyzing and structuring different types of projects. We maintain relationships with leading funding groups, as well as investment and commercial banks that invest in renewable energy projects. The most common financing vehicles are Power Purchase Agreement, Direct Purchase, and Lease.

Direct Ownership

• Simplest financing arrangement
• Host provides 100% of capital and contracts directly with installer
• Host owns, operates and maintains the system
• Host benefits from avoided electricity costs and SREC sales
• Host takes advantage of all benefits of installing the system

Benefits for the Customer:

• Simple payback in 4-6 years for system that has an economic value of 25-40 years
• Significant tax advantages: accelerated depreciation
• ITC benefit – government pays 30% of project cost in cash
• Lower Utility Bills
• Increased Property Value
• Positive Solar Press

Power Purchase Agreement (PPA)

• System is financed, installed, owned, and maintained by a third party
• Host buys solar energy from system owner over life of agreement
• Known future energy costs ease operating budget volatility
• Environmental, tax and depreciation benefits retained by system owner

Benefits for the Customer:

• No capital requirement for Host (typically)
• Only pay for Utility Bill
• Unit price of electricity is at / less than utility rate or competitive market offers and confirmed for term of contract

Benefits for the PPA Owner:

• Tax benefits of the ITC, Accelerated Depreciation, SRECs, Electricity Sales
• Superior and low risk returns

Leasing Arrangement

• No out-of-pocket costs, deposits or down payments
• Host maintains SRECs and other environmental benefits
• Treated as operating lease for accounting purposes; lease payments expensed
• Fixed purchase option at end of lease term

Benefits for the Customer:

• No capital requirement for Host (typically)
• Only pay for Utility Bill
• On or off the balance sheet of the customer
• Unit price of electricity at / less than Utility Rate or competitive market offers and confirmed for term of contract

Benefits for the Lease Holder:

• Tax benefits of the ITC, Accelerated Depreciation, SRECs
• Shorter duration of payments 8 – 12 years
• SEG to provide lease administration: ensure collection of utility bills from site host, make proper lease payments, monetization of SRECs, etc.

Collateral:

• Ownership of solar panels and equipment worth more than investment
• The cash flows are guaranteed as per mandates, even in worse case scenario of site host not making lease payment