Solar Developer`s Perspective

Solar Developer’s Perspective
COST and Murtha Cullina LLP
lode·star noun \ˈlōd-ˌstär\
1. a star that leads or guides.
2. something that serves as an inspiration,
model or guide.
3. developer of public sector solar PV projects
founded by Jeff Macel and Jaime Smith
Monetized Virtual Net Metering Credits
True Alignment of Interests
Developer Interests
Municipal Interests
Financing Certainty – Strong Credit Offtaker
Long Term Energy Savings (15-30% Savings)
Freedom to contract with 3rd party providers  Level playing field with 3rd party providers
Facilities located in areas of less impact
Highest and best of available lands
Alignment of interest on energy savings – no
“rate risk” or “escalator risk”
Alignment of interest on energy savings – no
“rate risk” or “escalator risk”
No development risk – sign with developers
with actionable projects
Bifurcation of load and location – many offtakers to choose from
Vested interests for Towns to incentivize
local projects
Priority given to town of project for shared
benefits of project
VNM Credits - Respective Roles
Project Development (High Risk/High Cost) None (No Risk)
- Negotiate land agreement
- Interconnection Application, and
System Impact Studies
- Permitting
- ZREC Procurement with CL&P and UI
Construction and Operation (Low Risk)
- Engineering, Procurement & Construction
- Underwriting and Financing
- Operation and Maintenance of Facility
Purchase $Dollar Credits Generated by
Facilities at Significant Discounts for Fixed
Term (usually 20/20+ years) (No Risk)
Choosing a developer . . .
Experience – Proven track record of developing and financing solar
Network – Network across financing, construction services, and key
Execution– Unwavering focus on driving to close; who will you be
working with?
Regulatory and Policy knowledge –Understanding programs allows
developers to anticipate and capitalize on opportunity.
Problem solving - Underwrite projects, identify and close any
development gaps (i.e. engineering, interconnection, permitting,
environmental, real-estate, legal contracts).
Jaime A. Smith – Partner and Co-founder
Before founding Lodestar Energy, Jaime founded and built Joule Finance to
advise and find investors for solar DG projects. Closed over 30 MW of
projects in 2013 across a dozen clients.
Previously, was VP/GM of the US Commercial business for SunEdison with
full P&L responsibility from sales to operations through financing for all
commercial and public sector customers.
Under Jaime’s leadership, SunEdison grew from $100 million to over $250
million in revenue in one year, from 2010 to 2011 and closed over 100
commercial DG projects, including the first solar projects in Pennsylvania and
Puerto Rico.
Financed projects successfully with Wells Fargo (though $120 million DG
fund), PNC, Rabobank, Metlife, Pardee Resources and Constellation Energy.
BS in Industrial Engineering from Virginia Tech; MBA from Harvard
Business School.
Jeffrey J. Macel – Partner and Co-founder
Before founding Lodestar Energy, Jeff founded and built ALTRU Energy, to
develop and finance solar DG projects. Developed over 15 MW of projects
in 2013 across four projects.
Prior to founding ALTRU Energy, worked as an attorney representing public
and private companies, private equity funds, and financial institutions in a
variety of businesses and industries, including renewable energy, finance and
real estate, including multiple tax equity transactions. Closed over $20B of
Jeff has represented private equity and portfolio companies in the Renewable
Energy and Technology arenas for over a decade. He represented Evergreen
Solar (ESLR) during its formative years, through its initial public offering in
2000, and as a public company thereafter. Evergreen Solar is regarded as a
global renewable and solar pioneer and leader in solar renewable energy
technology and maintains an active presence in a substantial number of deals
in the U.S. and abroad.
AB from Bowdoin College; JD from Duke University. Admitted to the bars
of Massachusetts, New York and Pennsylvania.
Robust & Growing Pipeline
Projects (MWs)
Site Control
(15 parcels)
 15 sites across CT (4-6 acres each)
 All CL&P
 Willington (4), Suffield (3), Enfield (2), Stafford, Brooklyn, Lebanon,
Scotland, Mansfield, Killingly
Questions . . .
Jaime A. Smith
[email protected]

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