CollectiveSun claims the tax benefits but all other benefits belong to you (i.e. any applicable utility rebates, state rebates, renewable energy credits, etc). Of course, all of the energy is yours to keep as well.
A SOLAR-FINANCING PARTNERSHIP MADE JUST FOR NONPROFITS AND TAX-EXEMPT ORGANIZATIONS
CollectivePACE™ is a collaboration between CollectiveSun, a company exclusively dedicated to helping nonprofits and tax-exempt organizations fund solar projects, and Greenworks Lending from Nuveen, the leading commercial PACE capital provider. By combining solar lease financing models and state-legislated C-PACE programs, CollectivePACE helps nonprofits go solar through the monetization of tax credits and financing terms that provide positive cash flow from day one.
Designed for nonprofit solar success
Solar for nonprofits can be a challenge when an organization can’t monetize solar tax credits and benefits. CollectivePACE™ delivers this value through a 12% or more discount off the solar system price. In exchange, CollectiveSun owns and operates the system and guarantees that the nonprofit or tax-exempt organization gets top solar performance. Nonprofits are also able to leverage the ownership of their property to secure affordable long-term financing through C-PACE to cover the remaining 88% of the system’s cost.
Saving money while guaranteeing peak system performancelearn how you can save
- BUY DOWNS THAT START AT 12% OF THE PROJECT COST VIA THE MONETIZATION OF SOLAR TAX CREDITS
- Remaining amount financed via c-pace
- 3rd party ownership with guaranteed system performance
- ownership option after 6 years
- zero cash out of pocket
FOR MORE INFORMATION OR TO APPLY, PLEASE CONTACT:
CollectivePACE vs. Cash Purchase
There’s simply no comparison when it comes to the power of nonprofit solar financing with CollectivePACE
|Limits use of nonprofit funds|
|Monetizes tax benefits of solar for nonprofit|
|Funding term matches system life|
|Cash flow positive each year of ownership|
|Performance guarantee included|
|System performance monitored|
|Operations and maintenance (O&M) included|
|Can cover non-solar property improvements|
FREQUENTLY ASKED QUESTIONS ABOUT COLLECTIVEPACE
There are two agreements that are part of CollectivePACE. The first agreement is the PACE loan agreement which is entered into by you and Greenworks Lending. The second agreement is the service contract, also referred to as the Solar Power Agreement (SPA), which is entered into by you and CollectiveSun. The installation agreement is a separate agreement between CollectiveSun and the solar installer you have selected.
It is a service contract where CollectiveSun owns, operates and maintains the equipment. You receive all of the solar electricity output for no additional cost. At the end of six years, you have the option to assume ownership for no additional cost on the service contract (described in more detail below).
CollectiveSun is responsible for all aspects of operations and maintenance. In addition, if the system were to stop performing, the IRS could take back the tax benefits. CollectiveSun has a significant financial incentive to ensure proper system performance. As such, our interests are very much in alignment with yours, our nonprofit partner.
After six years, you have the option to own the system for a net cost of $0 in compliance with special IRS rules, described below. Having CollectiveSun own the system for the first six years is a benefit for you because during that time CollectiveSun is taking care of all system operations and maintenance.
If anything were to go wrong, it usually happens if the first year or two so when the system is transferred to you after six years you are receiving a fully vetted system.
Yes, at the end of year six you may elect an early termination right in the service contract by notifying CollectiveSun in writing. No additional cash payment is required. If the system overproduces power during the initial 6 year period, there is no additional cost to you. On the other hand, if the system underproduces power during the initial 6 year period, (below 90% of the expected generation), a payment will be made to you. This is called the “Low Performance Compensation Amount” and is detailed in the service contract with CollectiveSun.
If you are interested in securing financing for your nonprofit solar, energy efficiency, water efficiency or seismic retrofit project, please contact us at CollectivePACE@greenworkslending.com. We will ask for an application from the owner of the property (printed and scanned), including information on the scope of the proposed project.
Our transaction manager can review the project, determine if it is eligible, and then walk you through the additional financial documents that are needed. We can then put together a binding term sheet, after which we expect to have the projected funded in 4-6 weeks.
Yes. Typical PACE loan terms are at least 20 years. At the end of year 6, if the Early Termination Right in the service contract is elected, you will own the system and PACE payments will continue according to the terms of the PACE loan with Greenworks Lending. You do not have to pay off the PACE loan early if you choose to take ownership of the system.
What Our Partners in Sustainability Say
CollectivePACE Financing has proved to be a valuable resource in working directly with CT’s many nonprofits. For too long, nonprofits have not been able to take advantage of the performance based incentives. With CollectivePACE, they have the ability to go solar and reap all of the benefits.
Especially through a public and private partnership, it is so nice to watch the CollectivePACE vehicle for non-profits make possible the energy and money savings happen in such a convenient, non-invasive way on an entity’s out of pocket and bottom line. It’s filling a gap in options that were needed for large scale savings over time without large investments up front. What is especially nice is the ability to keep open the business line of credit for a small to medium size business operation with nothing out of pocket.