Biodynamics provides financing options for hydroponic greenhouses and renewable energy installations.
Biodynamics works with several leading financial institutions that provided financing for a variety of energy efficient projects that utilize leasing with federal and state grant programs. The company has the ability to prefund projects, finance a portion of "soft” costs and adjust payment amounts once grant money is received. Green Systems Leasing can incorporate tax incentives into financing proposals and accommodate transaction sizes ranging up to $10 million.
Financing projects for corporate clients entail three primary options: Capital Purchase; Lease; or Power Purchase Agreement ("PPA").
- Capital Purchase Option: The client pays for the system, does not pay for the renewable energy generated by the system, and owns the economic benefits of the tax credits and/or rebates and accelerated Modified Accelerated Cost Recovery System ("MACRS") depreciation.
- Lease Option: The Lessor (a third-party investor), pays for the system and the client leases the system directly from the Lessor for a seven-to-10-year term with a commitment to purchase the system at the end of the term for an agreed upon residual value. With the Lease option, the client and Lessor agree on a payment structure for the renewable energy generated by the system and the Lessor receives the tax benefits, lease payments and the residual value.
- Power Purchase Agreement (PPA) Option: The client enters into a long-term agreement (usually fifteen to twenty-five years) to purchase solar electricity at an agreed upon payment plan over the life of the agreement. With the PPA option, the client has no upfront capital outlay, the investor realizes the tax benefits and the client has the option to purchase the system at the end of the agreement.