Structure projects to meet your needs

Based on your properties, capabilities, and goals, we’ll help you identify the optimal solution for your firm

STRUCTURING AN ENERGY PROJECT

Two key structuring decisions

Once you’ve selected an energy opportunity to pursue, the next step is to determine ‘how.’ Before construction ever starts, there are two aspects to every project that we’ll help you navigate. And as you might expect, there can be legal and financial implications for each.

01

Project Ownership

Who will be the legal owner of the energy assets? Essentially, who is paying for the development and installation of the energy project?

02

Project Monetization

How is the energy project going to be monetized (who is using and purchasing the power)? How are project revenues characterized?

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PROJECT OWNERSHIP

Flexible project ownership and capitalization options

We’ll work with you to identify an ownership structure that best suits your needs. The optimal solution may vary from property to property, which we’re set up to accommodate.

Return
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We’ll help you assess the opportunity, develop a return profile based on your appetite for risk and involvement, and understand any revenue characterization implications.

Capital investment
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Project ownership structures are frequently designed around the amount of capital you’d like to contribute (if any) and how long you typically hold properties.

Renewable incentives
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We can streamline the monetization of incentives (e.g., the Federal Investment Tax Credit and state Renewable Energy Credits), or we can help you do so directly.

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No-cost Solutions

By far the most popular, under this turn-key structure Wunder will develop, capitalize, install, and monetize the energy infrastructure, and flow the revenues back to you in the form of a lease payment or energy bill savings. You can capture value without having to own energy assets directly.

• No out-of-pocket expense • No development risk • No incentive monetization headaches • No REIT TRS implications

Direct ownership

If you have a large portfolio, available capital, and dedicated resourcing, direct ownership of on-site energy assets can deliver greater control and optionality. While set-up costs can be significant, choosing to own and capitalize a project can unlock additional benefits.

• Directly monetize the Federal Investment Tax Credit • Retire Renewable Energy Credits (RECs) • Optimize asset depreciation • Put capital to work, or don’t (leverage-friendly)

Alternate structures

As your advisor and advocate, we can step you through what alternative structures we’ve seen work well for others, how financiers may think about (and price) different options, and what pitfalls to avoid. You can also get started with a turnkey solutions and shift strategies as your firm gets more comfortable with energy.

Project Monetization

Separate from who owns a project and how it’s capitalized, there are multiple ways to monetize energy infrastructure. During our evaluation of your property, we’ll identify which utility and state programs are available, presenting you multiple options and their tradeoffs. Fortunately, Wunder can support all programs and project monetization strategies.

Behind-the-meter

Allowed virtually everywhere, these energy solutions are engineered for on-site use only. Whether it's a solar system or a battery storage system, these solutions provide energy bill savings to on-site tenants and residents, typically by selling power using a simple Power Purchase Agreement (PPA).

Front-of-meter

Where available, these solutions may provide energy bill savings to on-site tenants, the surrounding community, or even the utility. Common examples include community solar (in which energy is sold to surrounding businesses and residences) and feed-in-tariff programs (where energy is sold directly to the utility).

Determine which structure is right for you.