Raise development capital with Energy Shares
A new source for project funding.
Energy Shares is a FINRA registered broker-dealer which gives developers an equity crowdfunding platform to list their utility-scale renewable energy projects and enables individual investors to fund them.
Top reasons to raise capital with Energy Shares
- Retain more project control than typical funding options
- Competitive cost of capital
- Strong developer support with power marketing, project sales, and expertise from the Solariant Capital team
- Early to mid-stage development projects can be listed
- Help you raise funds for ongoing operations costs
- Funds raised can be used to cover team overhead and expenses
How it works
Direct investment from investors
Energy Shares offers investors direct access to invest in renewable energy projects in the form of an equity interest in project holding companies. By avoiding managed funds or institutions, both investors and developers are able to retain more of the possible profits from the sale* of projects.
Reimbursement of development expenses spent to date
In addition to raising all of the capital needed for remaining development activities, developers are able to receive a reimbursement of a large portion of third-party project development expenses spent to date.
Project development service fees
Developers receive ongoing (monthly or quarterly) fees, from the raised capital, to cover internal operating costs necessary to provide project development services.
Project company management
The management of the project companies and their holding companies is handled by Solariant Capital (“Project Manager”), an affiliate of the broker-dealer. The project manager will coordinate with various vendors and accounting firms to help deliver accounting, audit, compliance, reporting and tax filings so developers can focus on development work.
Project development support
Solariant Capital, as Project Manager for non-affiliated offerings, will provide ongoing project development support and guidance including technical, power marketing, and project exit/sale.*
Ready to get started?
A seamless experience from start to finish.
From pitching to promotion to payments, we've got you covered.
You can also reach us at issuers@energysharesus.com for more information.
1. Investment commitment
Investors make equity investments in a Project company through Energy Shares, a FINRA registered broker-dealer.
2. Funding
Funds are custodied and disbursed by a third-party trustee.
3. Capital deployment
Development expenses invoiced by third-party service providers (engineering, consulting, permitting, etc.) are reviewed by Project Manager and paid by the trustee according to the agreed upon initial budget.
4. Project exit (sale proceeds)*
Once the development is completed (fully permitted to break ground), the Project or the Project Company is typically sold to an institutional buyer or a utility company for a development fee. The project buyer will proceed with construction and operation.
5. Distribution (sale proceeds)*
Proceeds from the sale* of the project are distributed to the owners of the Project Holdco – first with a return of capital to the investors and then a distribution of potential profits based on ownership percentages.
6. Distribution return of capital + settlement
Investors' Energy Shares accounts will reflect the possible profits and capital distribution that are held at the trustee. The funds are available for withdrawal anytime from the trustee.
* The sale or exit of the project cannot be guaranteed and if there is a sale or exit, a price cannot be guaranteed as several factors such as but not limited to market, economic conditions, and availability of buyers may affect the ability to exit the project.
Potential valuation
Developers or project owners determine and offer ownership percentage to the investors in their project holding company for capital to be raised. However, valuation may be primarily driven by the investors’ expected annual returns given the project’s risk profile. In other words, the investors’ ownership percentage in the project holding company is determined by the expected returns.
Here is a set of examples that illustrates equity ownership percentage between the Investors and Developers after funding based on investors’ expected IRR. The Expected Market IRR of 15% is a hypothetical example and may or may not be representative of current market conditions, demand, and may not be indicative of all valuation methods for issuers.
Project A
Project IRR
35%
Expected market IRR
15%
Proposed investor equity ownership
43%
Developer equity ownership
57%
Project B
Project IRR
30%
Expected market IRR
15%
Proposed investor equity ownership
50%
Developer equity ownership
50%
Project C
Project IRR
25%
Expected market IRR
15%
Proposed investor equity ownership
60%
Developer equity ownership
40%
Ready to get started?
A seamless experience from start to finish.
From pitching to promotion to payments, we've got you covered.
You can also reach us at issuers@energysharesus.com for more information.