Transcript Working with

providing funding solutions for
energy efficiency and renewable
technology projects
Agenda
• Who are Capitas Structured Finance?
– Introduction
– Jason J Hunter, CSF
• Sales Cycle
– Finance options
• Building the business case
– Solar case study
• How to use our services
– Simple as 1-2-3
About Capitas Structured Finance
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A division of Capitas Finance – specialists in renewables
Backed by some of the largest UK and European banks
Over £1billion assets financed
ICT, vehicles, plant, marine, clean tech, other assets
Funding for private and public sector
– schools, local government, farming and more
• 25 Years experience
• You are experts in your field, we are in ours
Has this ever happened to you?
“We would love to
but dont have that
kind of capex at the
moment”
Lower energy bills
Feed-in Tariffs
End User
proposal
Installer/
Provider
Increased
reliability
£x
Energy Efficiency
Renewables Project
Reduced CO2
What are his options?
1.
Cash purchase?
–
For corporates - ties up valuable working capital resources
–
For Public Sector – constraints on government funding
2.
Borrow from the bank?
–
SMEs likely want guarantees, overdraft repayable on demand
–
NHS, HAs, Academies all find it difficult to borrow
–
LAs have Housing Revenue Account restrictions
3.
4.
Leasing? Finance lease, Operating lease
–
Pay as you Save
–
Finance secured on equipment only (no mortgages etc)
–
Whether Operating Leasing (off balance sheet) or Finance Leasing, rental cost is tax deductible for
corporations in the accounting period
–
For profitable businesses, Hire Purchase will give ECAs (100% 1st year deduction)
Roof rental?
????????
Management Guide to Asset Finance
Working with CSF
Capitas
Finance
Asset Finance and
Management
CSF pay the
project cost
to you
Lower energy bills
Repayments of
interest and
capital in line
with savings and
OFGEM
payments
Installer/
Provider
Increased
reliability
Feed-in Tariffs
End User
Energy savings
£££s
Reduced CO2
RHI & FiT
Payments £££s
Energy Efficiency
Renewables Project
Solar case study - 1
• Client had been considering a solar PV installation as part of a
wider programme of energy efficiency.
• Until the changes to FiTs in 2011, they had intended to
contract with Npower for the delivery of a “free-to-roof”
scheme backed by investors; these investors dropped out as a
result of lowered yield in the scheme
• We were asked by Npower to replicate the “cash neutral”
aspect of the original proposal, aligning repayments to the FiT
revenues (generating and export) and National Grid savings.
Solar case study - 2
• The installer was paid as the panels and inverters were ordered and
delivered, the system commissioned and signed-off by the client;
• repayments to us were funded by indexed FiT revenues and savings
that accrued from the installation
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•
The Benefits:
The installation was implemented in a timely fashion
Payment of installers bills in stages allows for good cash flow
Re-payments to us from the University are funded by savings and
FiTs, allowing a cash neutral solution
• 5% VAT throughout the 10 year finance period
Using CSF is as easy as 1-2-3
You do not need to be an expert underwriter to sell
finance!
1. Mention finance as a cash-neutral option early in
project
2. Explain that your finance partners will contact them
directly, and email CSF the proposal
3. Let Capitas Structured Finance arrange the funding
CSF will
• Fund entire projects
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consultancy, installation and commissioning
ground works where applicable
renewables and clean tech
heat distribution systems, and more
• Structure to meet the needs of your client
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Tailored and mapped to cash-flow and budgets
OJEU Tendering catered for
Deferred payment options to map into positive cash flows
Extend borrowing facilities without effect on credit lines
Budgets managed
VAT lowered and deferred
Thank you all for your time.
I will be around throughout the day for questions.
Jason J Hunter
Associate Director, Capitas Finance
t: 07948 316 554
e: [email protected]