The actual management of solar assets is straightforward. We expect to have, however, a highly refined system that both directly addresses each quadrant’s demands (below) and links them together to leverage the acquired knowledgebase. An outline of the “ecosystem” of the asset management operations is depicted below:
All U.S. solar development since 2009 has been supported by either a 30% cash grant or tax credit creating a tax recapture provision which restricts the sale of the asset until after five years. Many tax-driven investors are seeking to monetize the remaining contract values. This is expected to create hundreds if not thousands of sellers. (Solar cash flows are valued at a discount rate of around 8.0% IRR.)
The opportunity is ultimately worth in excess of $100B.
FUND and ASSET EXPERIENCE
1997 - Northern/AES - $11 M Energy Trading Platform, ultimately in excess of $50 M, 1000 MW on desk
2006 - MH Partners - $1.25 M Energy Trading Fund - MISO, PJM, ISO-NE
2010 - $10 M New Markets Tax Credit Solar Fund - 36 operating solar projects (New Jersey)
energy development & finance since 1995