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Product ID: 409440EAU
 
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Solar Leases: Legal, Business, and Practical Considerations

OnDemand Webinar (66 minutes)

Understand the nuts and bolts of solar energy projects and how to best craft deal documents that work for all parties involved.The solar energy industry in the United States has been growing steadily and is here to stay. Ambitious renewable energy mandates have become an integral part of federal and state government policies. More people in the United States are employed in solar electricity generation than the generation of electricity by coal, oil, and gas combined. The leasing of land, rooftops, and parking lots has become a popular source of revenue for property owners and is critical in achieving federal and state renewable energy mandates. In addition, anyone that consumes electricity, or has the capital to invest, can benefit from a solar energy project. Professionals negotiating solar leases and related documents must take into account important and varied legal and business considerations. Parties must consider whether a lease, license, or easement is the proper vehicle for their specific project. Once the proper vehicle is chosen, the parties must weigh the competing interests of the various stakeholders regarding issues such as casualty, assignment rights, maintenance, indemnifications, taxes, routine guarantees, and insurance, to name a few. Careful crafting of the deal documents is critical to ensure the parties are getting the deal they expected. This material will explain the nuts and bolts of a solar energy project and how to best craft deal documents that work for all parties involved. The program will examine various project structures and explore practical considerations for investors, developers, lenders, site hosts, and governmental entities involved in solar energy projects. If you are about to embark on a solar energy project, or if you are currently involved in structuring or implementing a solar project, you will benefit from the insight and practical advice provided in this program.

Authors

Stephen A. Kisker, Chiesa, Shahinian & Giantomasi PC

Agenda

Benefits of a Solar Energy Project

• Federal Tax Benefits

• State Incentives

• Federal and State Mandates

Lease, Easement, or License?

Project Structures

• First-Party Ownership

• Third-Party Ownership - the Power Purchase Agreement

• Capital Lease

Practical Considerations

• Roof Warranty

• Roof Repairs

• Casualty and Condemnation

• Access and Staging

Special Considerations for Site Hosts

• Lender Consent and Refinancing Issues

• Resale Issues

Special Considerations for Project Developers

• Recognition and Subordination Issues

• Interconnection Costs

• On-Site Electrical System

• Tax Equity

• Site Host Credit

Special Considerations for Lenders

• Recognition and Subordination Issues

• What Is My Collateral?

• Where Is the Income Stream to Pay Debt Service?

Special Considerations for Government Entities

• No Ability to Use Tax Incentives

• Public Bidding Requirements

• Prevailing Wage and Union Issues

• Procurement and Contracting Issues

Specific Lease Issues

• Access, Utility Easements, Staging Areas, and Parking

• Term and Rent

• Bonds, Guarantees, and Other Security

• Casualty and Condemnation

• Insurance and Indemnities

Maintenance Issues

• Options to Purchase

• End of Term Obligations

• Termination Rights

• Sale of Host Property

• Taxes

• Assignment

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