Windmill has relationships with hundreds of clean energy project sponsors.
We leverage our extensive transaction, financial and tax expertise to underwrite, structure and present clean energy investment opportunities. Our analysis focuses on:
PREDICTABLE CASH FLOW AND RETURNS
HIGH-QUALITY ASSETS WITH LONG-TERM VALUE
TAX BENEFITS, INCLUDING CREDITS AND SHELTERED INCOME
Investing with Windmill
Why invest renewable / alternative energy?
Renewable and alternative energy projects are viable long-term investment opportunities. Technological advancements over the past decade mean that once installed, these facilities can reliably generate electricity and other sources of energy for 30 years or longer with minimal degradation or maintenance expense at a fraction of the cost of utility power. The durability and predictability of alternative energy plants allow for long duration contracts that generate long-term cash flow. Furthermore, state and federal policy momentum in favor of new alternative / renewable energy sources means that investor returns from investment tax credits and accelerated depreciation are more predictable than ever.
These characteristics make alternative energy projects very attractive for investors seeking high risk-adjusted returns and a defined investment term in a non-correlated and low-volatility investment.
Finally, many investors are increasingly interested in social benefit investing. Renewable / alternative energy projects are clean and renewable energy sources that reduce greenhouse gas emissions from coal- and gas-fired power plants and have none of the environmental risks of nuclear or hydro-electric power.
Solar projects utilize photovoltaic cells to convert sunlight to electricity, which is sold under a long term contract to an offtaker, typically the host of the project
Cogeneration projects generate electricity from a generator driven by a primary engine that typically fueled with natural gas. Excess heat is recycled, making cogeneration up to 85% more efficient than utility electricity.
Biomass projects convert organic waste to gaseous and liquid fuels. Gas is typically used to generate electricity while liquid fuel (biodiesel) is sold. Valuable byproducts may also be sold, creating additional revenue streams.
Solar Tax Equity Financing
Solar tax equity is an ownership position structured to receive tax benefits plus a share of on-going cash flow. At the end of the 5-year IRS-mandated hold period, the interest is typically redeemed to terminate the investment. Solar investments are generally considered passive activities, which means the credits and losses are limited for individuals and trusts to the extent of passive income. Corporations are not subject to the passive activity loss limits. Investments are available for projects around the country in amounts ranging from less than $500,000 up to $5M.
Cogeneration Debt Financing
Windmill arranges debt financing for cogeneration projects based on the energy cost savings generated. Loans are typically fully-amortizing and have terms ranging from 6 years to 10 years. Interest rates are generally between 9.0% and 12.0% with loan-to-cost ratios around 75%. Investments typically range from $3M to $10M and up.
Biomass Debt and Preferred Financing
Biomass projects are more operationally intensive than solar or cogeneration. For this reason, Windmill is dedicated to working only with developers with proven operational expertise. In addition, biomass investments generally merit higher expected returns. Accordingly, financing is sometimes structured as preferred equity to capture additional value upside.
Contact us for more information about our current investment opportunities.