City of Columbus, Ohio
REC Development Services and Risk Capital
The City of Columbus signed a solar Power Purchase Agreement (PPA) with a local solar developer in 2010. The developer was unable to secure financing or obtain any of the permits/approvals needed to secure the Treasury 1603 Cash Grant.
On December 5, 2011, Renewable Energy Capital, LLC (REC) acquired the Columbus PPA from the local developer. After acquiring the solar PPA rights, REC provided development services and risk capital used for the site plans, electrical engineering, permitting and equipment deposits. These “Qualified Project Expenses” allowed the project LLC to “Safe Harbor” the Treasury Department 1603 Cash Grant.
On November 16, 2012, after Safe Harboring the 1603 Cash Grant, REC sold the Columbus roof-top solar PPA, permits, plan sets and approvals to General Energy Solutions USA. The Columbus project was completed in May 2013. The City of Columbus Fleet Management building today has solar panels producing almost 50% of the building’s electricity. This was the first City facility with a roof-top PV solar system and at the time of commissioning in 2013, was the largest of its kind in Ohio.
The City of Columbus solar project is another example of REC providing early stage risk capital and specialized finance structures to solve financing issues for municipal infrastructure projects.