ANATOMY OF A DEAL: FINANCING

Peter Y. Flynn, Bostonia Partners

Critical Issues Economics

Generation market Renewable Portfolio Standard Federal and state tax incentives

Procurement method: long-term contracting authority is key Due diligence and pre-procurement work by the Service Project size and technologies sought Essentiality of the installation Track record of the Service and installation

Project “champion” Team must include members with experience and financial

strength

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Additional Considerations Potential Issues & Challenges PPA pricing

Termination for convenience Recapture during tax benefit period RECs Insolation and shading

Potential Complexities Site control Relocation Roof Replacement Novation/assignment Procurement method OMB scoring State utility laws

Additional Value Renewable Energy Credits (RECs) –

ownership, price, and value

Energy Security

Renewable Energy Financing Structure - ESPC

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TRUSTEE

Solar Facility and ECMs

RESA and ECM Payments

GOVERNMENTIDIQ Contract Task Order for ECMs

Tax EquityOwnership

ESCO

Construction FundsEnergy Services

Agreement

BOSTONIA(Owner / SPE)

O&M Agreement

Tax Benefits

RESA / Task Order Assignment

InstallationAgreement

PPA Financing Structure

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Tax Equity

Debt Project Equity

Purchase Price

GOVERNMENT

PPA Revenue & Tax Benefits

InstallationO&M ContractGuarantees

Project Company(Solar Facility

Owner)Solar Developer

Solar generated electricity

Electricity Payments

EUL Financing Structure

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GOV’T

Ground Lease

EPC

FUEL

DEVELOPER / SPE

TRUSTEE

LENDER [TAX]

EQUITY

O&M

Power Sales

PPA Payments

Debt ServiceFINANCIER

COMMERCIAL OFF-TAKE

Power Sales

Contact Information

Peter Y. FlynnExecutive Vice President617-226-8103 Direct617-437-0150 Mainpflynn@bostonia.com

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