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Ownership-Structure Options

There are many possible business and ownership structures for renewable-energy facilities. Most are structured in one of the following three ways, sometimes with variations.

  1. The customer, whether public, private, or a public-private partnership, can hire IRS to build the project, paying for it with its own or borrowed funds. Then the customer owns the facility, receives the income from the sale of its energy, uses part of that income to service loans, and keeps the difference.
  2. IRS can finance, build, own, and operate the facility itself and receive the income from the sale of electricity through a Power Purchase Agreement with off-takers (the customer and/or others), servicing the loan from the revenues.
  3. An SPV (Special-Purpose Vehicle) company established just for this project, whose owners could include the customer, local private companies and investors, lenders, and IRS, can finance, build, own, and operate the facility.