Solar Development Services for Insitutional Investors

MSL Group Originates, Develops and Manages Renewable Energy Portfolios for Institutional Investors, Family Offices and High Net Worth Individuals

Institutional investors (such as private equity, alternative asset managers and family offices) are rapidly increasing exposure to the renewable energy sector. Because solar costs have declined, renewable projects (backed by credit offtakers) offer relatively high IRR’s, epecially in the Northeastern region of the United States. MSL Group offers turn-key development services of renewable energy projects. We originate, develop, finance, build and manage solar assets and portfolios for investors. Our team can construct a solar portfolio from concept through COD. Our EPC partners offer highly competetive O&M contracts to assist with asset management. 

What we offer:  MSL Group offers investment opportunities to family offices and other institutional investors seeking direct exposure to the US solar market.  Our scope of services include: Identification of new market geographies, deal origination, financial analysis of projects, project site selection, site control negotiations, EPC selection and project management and asset management. We specialize in determining the optimal capital structure for solar investments by using innovative techniques such as back-levered debt (for US tax-domiciled investors), in order to optimize tax equity monetization and achieve maximum Internal Rate of Return. 

Solar Tax equity investment opportunities. MSL Group bridges the gap between solar energy projects and  tax equity investors, offering investors direct access to  solar tax equity investment (ITC) opportunities.  MSL Group currently has a pipeline of over 100 megawatts of solar energy projects and offers direct access to individuals, C-corporations and other qualif Solar Tax Equity Investors. 

The current status of solar tax equity investments: Congress has set the Investment Tax Credit (“ITC”) for eligible solar projects at 30%.  The ITC was renewed in December 2015, providing seven additional years of opportunity.  Tax equity investment often comprises approximately 30% of a project’s capital structure.  Therefore, the solar tax equity investor monetizes the 30% ITC and receives other benefits and cash flows (tax equity skim) proportional to its ownership stake. Generally, the term of the tax equity investment is 5 years, and power purchase agreement  (PPA) terms with off-takers are generally 20 years.

There are four return drivers for tax equity investments in solar projects:

• A 30% Investment Tax Credit, which can be applied to the previous tax year, current year or 20 years forward
• MACRS Depreciation equal to 85% of the fair market value of the project
• Annual net cash flows over the life of the investment, also known as the “tax equity skim”
• The exit or buyback payment to the tax equity investor when it divests its interests in the partnership and associated tax benefits.  This payment must be based on fair market value.

MSL Group is Your Solar Development Partner

We work with institutional investors, family offices, private equity funds and high net worth individuals to build profitable solar portfolios. Contact Scott Licamele at Ext. 277 for more details.