Developers are charged up to build or complete wind energy facilities, but the banking crisis and the recession have benched most financiers and tax-equity investors. With the dire need for capital to fund wind projects, why have some lenders, investors and developers forgone leasing as financing method in favor of partnership structures?
The simple answer is that although leases and partnerships offer viable structures to own and finance wind energy projects, some financiers believe leasing wind energy facilities presents greater tax risks and less favorable economics than partnership structures. But the answer is not that simple, especially after the passage of the American Recovery and Reinvestment Act of 2009 (ARRA).
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Reprinted with permission from North American Windpower Magazine.