Good Energy

The Basic Idea

Solar energy systems are built on rooftops of residential and mixed-use buildings.

Systems sell renewable energy to the building at a rate below utility price.

Integrated design and financing is a turn-key investment opportunity for private equity and real estate funds. After 5 years, ownership can flip to the building owners or residents.

The Challenge

Energy is a growing challenge for the real estate sector

Unstable. Brown-outs and extreme climate events are causing increasing grid failure.

Unaffordable. Residential energy costs are projected to rise 3.5 - 4.5% annually.

Unsustainable. Utilities run on primarily dirty power (coal and gas).

Local renewable energy is a promising solution

Complementary. Solar power supplements the main grid.

Revenue-positive. After amortization of the equipment cost, the solar energy system produces revenue for the life of the equipment.

Resilient. In the event of a black out, power will be available with sunlight and optionally can be stored with batteries.

... but barriers remain.

Up-front cost is prohibitive. Solar (+ battery) remains a large up-front investment. Investors prefer to invest in large scale industrial solar projects for their ROIs.

Missing asset classes. Systemic barriers prevent a massive population and whole real estate asset classes from accessing solar: Mixed-use, Multi-family, Lower income

The Opportunity

Mid-sized real estate assets are not well served by today's renewable energy financing models.

32%

Nearly one third of the U.S. Housing Stock is comprised of:

  • Multifamily

  • Mixed-use

  • Duplex / Triplex / Row houses

A solar nanogrid for a building is funded by third-party investors, ideally the same investor pool that funded the building development. Local renewable energy is sold to the building owner or the HOA at a fixed rate below the utility price. This is a new investment product for private equity funds or investment firms. It generates steady profit by selling energy, to provide return on investment as well as investment tax benefits. After the tax benefit period (5 years) ownership of the system can "flip" back to building owners / managers. Alternatively, it can be owned by the residents themselves, through a Perpetual Purpose Trust.

What is a solar nanogrid?

Nanogrid systems include solar panels, batteries, and energy management technology. Together, these allow a multi-unit building to produce, store, and consume its own energy for common loads. Nanogrids are connected to the main energy grid, and can sell back excess energy. Because they integrate energy production and emergency storage, they can operate independently in "island mode" when the main energy grid fails.

What is a Perpetual Purpose Trust?

The Perpetual Purpose Trust (PPT) is a non-charitable trust that exists to achieve a purpose. A Trust Agreement defines the legal fiduciary duty of its trustees to fulfill that purpose, and the processes they use to govern the assets of the trust. We help stakeholders establish a PPT that governs their microgrid. In the long term, they are freed from increasing energy costs and experience less risk of outages.