CE+BFI Recommended Financing Model – Morris Model Financing Structure
January 30, 2013
Clean Energy Group, Council of Development Finance Agencies | Clean Energy Group, Council of Development Finance Agencies
The Clean Energy and Bond Finance Initiative (CE+BFI), a joint initiative of Clean Energy Group and the Council of Development Finance Agencies (CDFA), released a recommended financing model for clean energy development. The ‘Morris Model,’ named for a financing structure originated in Morris County, New Jersey, leverages bond financing to achieve relatively low cost capital for renewable energy.
“Financing structures such as the Morris Model will help state and local governments achieve cleaner energy and lower energy costs,” said Lew Milford, President of Clean Energy Group.
The Morris Model relies upon a public-private partnership involving county facilities, a county improvement authority, and a solar developer. Through this structure, the county buildings are able to access solar energy without assuming the operation and management risks of the solar panels themselves. The financing structure includes a power purchase agreement, state solar energy credits, and double-barreled taxable revenue bonds supported by a county guarantee.
“The clean energy industry can use bond finance tools to achieve long-term stability and scalability,” said Toby Rittner, President & CEO of the Council of Development Finance Agencies.
The paper on the Morris Model is one of a series published by CE+BFI. The series of recommended financing models is intended to provide state and local governments with a menu of options for supporting and financing clean energy development in their communities.