As it has with other long-established transaction models for energy and energy efficiency, Cycle7 Solar turns the traditional approach to solar development on its head. All too often, development of distributed resources like solar and co-generation presume upon the time and efforts of local officials and volunteer committees on the one hand, while negotiating to give them the least possible economic benefit on the other. Even the terms “lease” and PILOT evoke an adversarial landlord-tenant type relationshis. In Cycle7 Solar’s approach, host communities are treated as part of the development team and are rewarded with a large share of the development fee. Decisions about system size, configuration, permitting approaches and other key considerations are developed collaboratively. Once a project is designed, Cycle7 presents cost and return expectations to clients in “open book” form with full visibility into fees. A non-profit or a town that shares in the fee upside is one that is likely to help identify solutions and move a project expeditiously than one that is a passive recipient of rent. Cycle7 brings to the work nearly 8 years of work developing, permitting and financing distributed generation projects.
Cycle7’s Solar Development Partner is Massachusetts-based Industria Engineering. Its projects and experience can be found here.
Just Roots Solar
Cycle7 Solar is the selected developer for a 1 MW agricultural canopy solar project on the non-profit Greenfield Community Farm known commonly as Just Roots. The project will allow Just Roots to explore innovative cultivation of native pollinators and other crops. Consistent with its approach to non-profits and government, Cycle7 Solar will share a substantial portion of the development fee with the host property, which Just Roots will use for greenhouse and other farm improvements and an operating reserve.
EMPIRE STATE BUILDING COGENERATION
Cycle7 is working with its client, Sustainable Development Capital (SDCL), to negotiate and close a lease-leaseback transaction with the New York City Industrial Development Agency. Tax abatements from the transaction will make it feasible for SDCL to build a cogeneration plant in the Empire State Building that will make the building more than 25% more efficient and prevent 6.6 million gallons of water from flowing into the New York City water treatment system.