60Hertz is now raising tax equity and impact finance for three solar + Battery Energy Storage Solution projects in our 2018 - 2023 pipeline. After vetting applications for project finance in 2017, 60Hertz has identified 14 projects for the next five years that need $15.3M of capital investment. 60Hertz enables partners to efficiently invest in Alaska and other US Jurisdictions and take advantage of boutique-scale Investment Tax Credits.
Energy Investment Trust Model
60Hertz is pioneering a mechanism by which small scale renewable projects that would otherwise be too micro to attract investment, can be capitalized. 60Hertz organizes investors and projects into Special Purpose Vehicles that own renewable infrastructure on behalf of communities or commercial sites. 60Hertz customers buy the kilowatthours or energy services according to a predictable price for a 10-25 year term. Only proven technology will be deployed. Project engineers and subcontractors must offer a performance guarantee. Over time, 60Hertz will leverage learnings to create annual funds of projects, akin to a Real Estate Investment Trust (REIT). Investors will buy shares of an annual tranche of projects. This mitigates risk and offers investors a blended return. A mix of village and commercial microgrid sites (average of $3MM investment per site) compose annual investable tranches.
Investors in 60Hertz's projects will enable remote communities to save money immediately on diesel and operating expenses. The impact is measurable: remote Alaskan communities, or other "islanded sites" within the United States pay the highest cost of power in the US at $0.65/kWh — 4 times the national average. This cost of power radically increases residents’ cost of living, from groceries to heat to transportation. High energy costs are especially concerning given the lack of economic development in communities in which we work. Since 60Hertz is a social enterprise, investor return is slightly below market rates.
Investor risk is mitigated in four ways: each project within the fund is its own LLC; annual tranches are composed of a diversity of customers with different risk profiles; 60Hertz performs a thorough credit assessment using a multi-factor model before signing a community or commercial site to the project; and finally, maintenance risk is mitigated through our software tool deployed on every site.
Investment in 60Hertz Corporation
After successfully raising FRiends & Family investment and finding market traction, 60Hertz announced its seed round in June 2018. Accredited investors interested in 60Hertz Corporation may send inquiries to Piper Foster Wilder, CEO, for a link to our investor Dropbox and to set up a conversation.