This month, we are wrapping up our series on Leyline Renewable Capital's product offerings. We covered Growth Capital, which targets new developers and helps set up projects on the drawing board; Development Capital, which supports early-phase projects from established developers; and Bridge Capital, which helps "bridge the gap" on almost-finished projects and enables developers to get their projects sale ready. Even beyond the development stage, however, renewable energy developers may still need support to kick-start project construction. This is where our fourth product, Leyline Build Capital, comes in.
Developer Profile for Build Capital
In project finance, capital providers assume risk for developers and provide funds to alleviate project issues. Those looking to utilize build capital must be sophisticated mid-market developers or small independent power producers. This product may be used for late-stage projects across all approved technologies at the medium- to large-scale, including utility-scale and off-site distributed generation, such as community solar.
Build capital mitigates construction risks - maybe a project is ready to build and has a notice to proceed, but a sale hasn't come through and the developer wants to begin construction. Or perhaps there are many small projects, and the developer can't delay one to wait for the rest of the portfolio to catch up. Build capital increases the likelihood that projects will reach operation in a timely manner and without running over budget. Leyline fronts the start of the build, so that projects can get going and break the ground.
Leyline Build Capital has a loan timeline between six months and up to two years.
How Leyline's Build Capital Helped Save Solar
Save Solar finances and develops community solar projects in Washington, D.C., with a focus on affordable housing communities. There are several of these projects, and they move relatively quickly, meaning that the company couldn't wait to raise the amount necessary for construction financing.
Leyline provided flexible Build Capital to meet the company's needs until it gained permanent financing for its portfolio. This working capital and construction equity also allowed the company to transition its business from a "develop and flip" model to a "develop, build, and hold" model. With Leyline's assistance, Save Solar developed and now retains ownership of around 17 government, commercial, and residential buildings totaling 10.3 MW. These projects ensure that residential, low-income, community subscribers receive clean, discounted energy to power their homes and support their families.
Are You a Renewable Energy Developer Who Needs Financing?
If you are a renewable energy developer based in the United States, who would like to know more about how Leyline can provide innovative financing for your projects, contact us today!