Avi Jacobson introduces himself as the senior sustainable energy coordinator at the Washington State Housing Finance Commission. He helps finance renewable energy and energy efficiency projects and provides policy advice, consulting, and matchmaking services. Jacobson's presentation covers lessons from the Commission's sustainable energy program, including identifying the sustainability issue being addressed, the related business problem, who is affected, developing a business model, and establishing a finance structure using mechanisms like debt, equity, and public-private partnerships. The goal is to help attendees understand Jacobson's role and background and think through approaches for developing clean technology businesses.

1. There is Nothing Special
About Clean Energy
Avi Jacobson
Senior Sustainable Energy Coordinator
Washington State Housing Finance Commission
avi.jacobson@wshfc.org
206-254-5359
@Avi_Jacobson

2. Introducing… Me
• Run the WSHFC Energy Program
• Help finance renewable energy & energy efficiency
projects
• Policy Advice
• Matchmaking
• Consulting
• All around nice guy
 Growing the WA Clean Technology sector

3. Introducing… You
•
•
•
•
Backgrounds?
Why BGI?
Goals?
Knowledge of energy sector?
If I am talking too fast, above/beneath you then stop me.

4. Lessons of the
Sustainable Energy Program
•
•
•
•
•
What sustainability issue is being addressed
What business problem does addressing it solve
Whose problem is it?
Business model to meet it
Finance structure to implement it
• Debt
• Equity
• Public Private Partnerships
• Etc.

5. Sustainability Problem?
•
•
•
•
Long list of options
You are BGI students.
I don’t have to waste slides on this
But I did anyway

6. What business problem does addressing it solve?
• Spending too much on energy?
• Compliance Costs?
• Resource efficiency?
• You tell me…

7. Whose Problem Is It?
• This is your market… does it really exist?
• Question your assumptions
• Do not be sloppy with language
• “Energy” is not the same as electricity
• Electricity is a convenient example…
• Quick & Dirty Look at Macro & Micro Trends
• Develop Hypotheses

9. http://www.eia.gov/todayinenergy/images/2014.02.18/tab1.png

10. http://www.eia.gov/todayinenergy/images/2014.02.18/tab8.png

11. Data: http://www.eia.gov/forecasts/aeo/excel/fig75_data.xls
http://www.eia.gov/forecasts/aeo/images/figure_75-lg.jpg

12. http://www.eia.gov/forecasts/ieo/images/figure_82.jpg
http://www.eia.gov/forecasts/ieo/images/figure_82.jpg
http://www.eia.gov/forecasts/ieo/images/figure_81.jpg

13. Figure 2.2 GTM/SEIA USMI 3Q2013 Executive Summary

14. Figure 2.1 GTM/SEIA USMI 3Q2013 Executive Summary
http://www.eia.gov/forecasts/aeo/images/figure_5-lg.jpg

15. Figure 2.4 GTM/SEIA USMI 3Q2013 Executive Summary

16. Figure 2.5 GTM/SEIA USMI 3Q2013 Executive Summary

17. Lessons of the
Sustainable Energy Program
•
•
•
What sustainability issue is being addressed
What business problem does addressing it solve
Whose problem is it?
• Business model to meet it
•
Finance structure to implement it
• Debt
• Equity
• Public Private Partnerships
• Etc.

18. Lessons of the
Sustainable Energy Program
•
•
•
What sustainability issue is being addressed
What business problem does addressing it solve
Whose problem is it?
• Business model to meet it
•
•
•
•
•
How do you make money?
One off projects? Selling widgets? Selling service?
Distribution channel?
Customers?
Let’s tinker with some ideas we put on the whiteboard earlier…

19. Lessons of the
Sustainable Energy Program
•
•
•
•
What sustainability issue is being addressed
What business problem does addressing it solve
Whose problem is it?
Business model to meet it
• Finance structure to implement it
• Debt
• Equity
• Public Private Partnerships
• Etc.

20. Lessons of the
Sustainable Energy Program
• Finance structure to implement it*
• Debt
• Equity
• Public Private Partnerships
• Etc.
* Disclaimer:
Following slides are for demonstration purposes only

21. The Impact of Financial Structure on the Cost of Solar Energy Michael Mendelsohn, Claire Kreycik, Lori Bird, Paul Schwabe, and Karlynn Cory
Prepared under Task No. SM10.2444

23. ROOFTOP SOLAR PV FINANCING STRUCTURE
Legend
Holding
Company
Tax Equity
Investor
Provides Capital and
Owns [y]% of
Project Owner
Provides Capital and
Owns [x]% of
Project Owner
Project Owner
Financing Support
Green Bank
Repayment
Loan Proceeds
Commercial
Lenders
Loan Repayment
Monthly Payments
• Debt financing from lenders (i.e., Green Bank and
Commercial Lenders)
• Receives incentives from Federal Government, as well as
state and local incentives where available
• Sells Renewable Energy Credits where available
• Purchases solar equipment from Manufacturers, who
provide equipment warranties
• Pays Installation Partners to install the solar equipment
and provide installation warranty
• Enters into PPAs/Leases with Behind-the-Meter-Hosts
Payment
Federal
Government
Benefits from
Investment Tax Credit and
Accelerated Depreciation
Solar Equipment
and Warranties
Solar
Equipment
Manufacturers
Debt Financing
Equity Investors
Project Owner
Suppliers and Customers
Incentives
Ownership Relationship
Contractual Relationship
Payment
Property
Owner
PV System (Lease) or
Electricity Generated from
PV System (PPA)
Excess
Electricity
Renewable Energy Credits
Payment for Renewable
Energy Credits and
State and Local
Incentives
Installation and
Warranties
Installation
Partners
Bill Credits through
Net Metering
Local Utility
Incentives to be
Administered
State and Local
Governments

25. Lessons of the
Sustainable Energy Program
•
•
•
•
•
What sustainability issue is being addressed
What business problem does addressing it solve
Whose problem is it?
Business model to meet it
Finance structure to implement it
• Debt
• Equity
• Public Private Partnerships
• Etc.

26. Avi Jacobson
Senior Sustainable Energy Coordinator
Washington State Housing Finance Commission
avi.jacobson@wshfc.org
206-254-5359
@Avi_Jacobson