RE:RE:trouble with business model is cost of debt to carry Nicely explained, Alleysonme.
alleyesonme wrote: Disagree. Tax equity pays for a portion of the project. The remaining debt is carried as project level debt for 25 years. The repayment is calculated at a high rate like 6 or 8%. 25% of the recurring revenue pays project debt, maintenance, insurance. The remainder is gross profit. The costs of development is paid from the project level debt upon completion as a developer fee. This doesn't take into account the pending % increase of tax support as "direct pay" .More money towards the project with the tax equity investor and his greedy hands outta the picture. Also doesn't account for the future ability to lump projects together as a portfolio and receive a much lower interest rate. Amortization period is 7 years. Business model is brilliant, and is much better than that of a traditional utility because we don't have to service or maintain transmission lines. This is legislated access to someone else's customers and infrastructure. Absolutely unprecedented and brilliant in so many respects.