1. SEIA Finance Initiative
Mike Mendelsohn
Sr. Director Project Finance & Capital Markets
May 9, 2018
© 2015 Solar Energy Industries Association®

2. SEIA Finance Initiative
Designed to open untapped sectors for solar deployment thru in-depth comprehension of barriers and innovative financial structuring
Open to SEIA members and non-members
Paid for by SEIA – your support via SEIA membership is greatly appreciated!
Additional benefits for SEIA members:
Access to research, conferences, lobby days, etc.
Subcomm. leads, project steering & other activities via SEIA Project Finance Committee (e.g., mtg. banking, international, etc.)
References & conference speaking opportunities (e.g., SEIA Finance & Tax Seminar targeted to Fortune 500)
May 9, 2018
© 2014 Solar Energy Industries Association®

3. 3 Primary Goals: Capital
1. Open and Expand Sources of Investment: * real estate * capital markets and private equity, and * banks and credit unions for investment and Credit Support * foundations * green banks * program and mission-based investment, and * insurance & related sources
May 9, 2018
© 2014 Solar Energy Industries Association®

4. 3 Primary Goals: Offtakers
2. Facilitate Untapped Markets Sectors
* schools
* housing agencies
* other non-profits
* multi-tenant properties, and
* other unrated credits
Comprehend and address specific barriers.
Organize offtake and installer market to facilitate asset consistency via standard contracts, best practices, consistent credit metrics, Tax Equity criteria, etc.
May 9, 2018
© 2014 Solar Energy Industries Association®

5. 3 Primary Goals: Structures
3. Create Financial Innovations
* warehouses
* asset-backed securities, and
* other debt instruments
Leverage available credit enhancement and pool solar project cash flows for investment by pension funds and other large-scale capital managers.
May 9, 2018
© 2014 Solar Energy Industries Association®

6. A Brief History of… SAPC
Solar Access to Public Capital
3 year project – convened by NREL & funded by DOE to open capital markets
500 member entities by summer 2015
Primary activities:
Standard contracts – suite of 6 leases and PPAs
Best Practices in Installation & O&M
Performance dataset – oSPARC
Mock securitization (resi, C&I) with rating agencies
Tandem tax equity / debt structure to include both in initial capital stack
May 9, 2018
© 2014 Solar Energy Industries Association®

7. 2 Primary Avenues: #1) Non-Profit
Organize PRI & Mission Investment
Comprehend mission agenda and relevant criteria
Assess credit enhancement structures (e.g., mezz. debt, insurance product) to meet criteria and attract senior debt
Line up targeted non-profit off-take
Facilitate Warehouses and Other Structures
Develop term sheets and other elements to support structures
Transfer to investment banks / private equity for implementation
Reduce transaction costs via asset consistency
SAPC Standard Contracts (leases & PPAs)
SAPC Best Installation and O&M Practices
SEIA Solar Business Code & Other Consumer Protection Protocols
May 9, 2018
© 2015 Solar Energy Industries Association®

8. 2 Primary Avenues, cont’d: #2) For Profit
Comprehend real estate markets
REIT / investor, asset manager perspective
Benefits / disbenefits of solar fixtures / ownership
Educational materials
Margins on energy sales or roof leases
Customer acquisition / retention benefits as offering tenants stable and green 20-yr electricity price
Target RE conferences & venues
Financial Structure
Apply portfolio benefits to limit underwriting limitations
Statistical assessments across property
Credit enhance up to / near historical vacancy peak
May 9, 2018
© 2014 Solar Energy Industries Association®

9. © 2014 Solar Energy Industries Association®
What can you do?
Participate in SEIA Finance Initiative and subcommittees (proposed list):
Real Estate
Mission-based investment
Offtakers
Structuring
Leverage your rolodex
Colleagues, clients, etc.
Build solutions that will open the solar economy
Subcomm. Activities:
* Outreach & interview targeted communities
* Develop concise educ. materials
* Speak at non-solar events
* Develop financial structure & term sheets / analytics (if applicable)
May 9, 2018
© 2014 Solar Energy Industries Association®

10. © 2015 Solar Energy Industries Association®
Contact
To join: Christina Brooks Operations Manager-Membership To discuss: Mike Mendelsohn Sr. Director, Project Finance & Capital Markets
May 9, 2018
© 2015 Solar Energy Industries Association®