Frequently Asked Questions
Who can invest through CleanCapital?
Offerings are available to accredited investors.
How does the platform work?
CleanCapital offers ownership interests in pools of clean energy projects. Summaries of investment opportunities can be accessed through the website. Once you’ve decided to make an investment, simply click ‘Invest Now’ to review and sign the documents presented. Funds are wired seamlessly through the platform.
What can investors expect?
CleanCapital investors will have a user-friendly, transparent investment experience. They can pick and choose investments without any committed capital. Investments that are offered through CleanCapital are operating, cash flowing assets well-suited for long term investors.
What types of investments are available?
CleanCapital offers both equity and debt investments in operating clean energy projects. CleanCapital offers equity interests in a limited liability company (LLC), which in turn, owns a pool of clean energy projects. CleanCapital will also offer debt investments in these asset pools.
Who selects the investments?
Investors choose. CleanCapital originates investments, and investors decide whether they want to invest.
How risky is solar investing?
All investments have some risk, be it weather, equipment, credit, or otherwise. But clean energy investments, and solar in particular, have proven to be very reliable investments. Solar projects are not mechanically complex and require little maintenance.
How are receivables, payables and distributions managed?
CleanCapital manages all investments; we collect all revenue and make all payments. Investors can track performance 24/7 on their personal investor page.
What is the minimum investment?
The minimum investment is determined with each offering.
How long does an investor have to stay in the investment?
Solar investments are long term, yielding investments. CleanCapital will sell investments only if beneficial to the investors.
Can you sell your shares?
CleanCapital is working on a product that will allow investors to sell shares.
What are the sources of revenue for a solar project?
Solar projects can sell two attributes: power and, depending on the state, renewable energy credits (SRECS). The project owner will enter into long-term contracts to sell the power. The project owner will also typically (but not always) enter a long-term SREC contract. This creates two reliable and ongoing revenue streams.
What ongoing expenses do solar projects have?
There only a few ongoing project expenses, including insurance, operations and maintenance, property tax, rent and CleanCapital’s management fee. All of these expenses are paid out of project cash flow; no new capital is required from investors.
Who manages the solar project?
CleanCapital originates and manages every investment offered through the CleanCapital platform. The LLC is managed by CleanCapital on behalf of the investors, and CleanCapital will make decisions on behalf of the LLC.
Selling a Project
What projects are offered on CleanCapital?
CleanCapital is a secondary market for operating projects. We seek quality operating projects with a strong track record of performance. CleanCapital serves as a reliable platform for project owners to exit their investment, freeing up capital for future development opportunities.
Can third parties raise money through CleanCapital?
Not right now. CleanCapital offer its investors high quality investments that we originate and manage. We anticipate opening the platform to project developers in late 2016.
What types of projects are offered on CleanCapital?
CleanCapital offers investment opportunities into operating project portfolios in the distributed, clean energy market segment. CleanCapital provides project owners with a simple way to exit an existing clean energy project. We seek quality operating projects with a strong track record of performance.
What is the profile of a CleanCapital project?
CleanCapital seeks projects that have a long term power purchase agreement of approximately 15-20 years, clean title to the assets, and proper contract documentation.
Are there legal restrictions on offerings?
Yes. Securities offerings are highly regulated, and CleanCapital works with it regulatory counsel to ensure we are in strict compliance with all regulations. What documents are required for an offering?
CleanCapital offerings require an offering memorandum which describes the investment and its risks. Investors will be required to review and sign a subscription document, operating agreement, and, in some cases, an escrow agreement. CleanCapital standardized documents will be used and investors can sign everything electronically.