Coast Energy Partners with CRE Owners to Immediately Increase NOI
LOS ANGELES, April 28, 2022 /PRNewswire/ -- Coast Energy, a pioneering solar firm, announces the launch of its commercial and industrial (C&I) solar financing business. By offering unique financing solutions for solar panel installations, the firm is empowering business owners to immediately increase NOI and achieve ESG goals through solar energy.
Led by a team of industry veterans, Coast Energy is becoming one of the fastest growing solar development firms in the US. The company is advancing an innovative, turn-key approach to C&I solar that addresses the most common barriers for commercial real estate (CRE) owners: cost and complexity. Coast Energy handles every aspect of financing, development, installation, and operation of the solar system – streamlining an otherwise complex process to ensure that property owners receive immediate NOI benefits from headache-free solar energy.
"We want to provide simple but valuable solutions to building owners that are currently unavailable," said Tim Popp, Head of Company Operations. "Our approach is to make the process of transitioning to solar easy and transparent while adding immediate property value for our clients."
Coast Energy covers 100% of the system installation and ongoing operational costs through its market-leading Power Purchase Agreement (PPA). In exchange, building owners simply purchase dependable solar electricity from Coast Energy at a fixed rate – typically substantially lower than local utility rates. To ensure uninterrupted power, the building remains connected to the utility grid as a back-up source. If building owners sell the property, Coast Energy's PPAs are easily transferred to the purchaser, allowing current owners full flexibility to provide continued solar benefits to the new owners.
CRE owners receive many benefits by working with Coast Energy, including:
- Immediate NOI increase for $0 out-of-pocket cost
- Significant increase in property value
- Simple financing for non-energy improvements (New roof, HVAC, TI's, etc)
- Unlocked value from unused space (free covered parking, non-revenue producing land)
- Meaningful ESG benefits and green branding
"Having started my career in commercial real estate, we understand the difficulties owners face in growing and managing their portfolios. We work hard to structure solutions to maximize the benefits to commercial properties while minimizing or eliminating perceived complexity of integrating solar," said Blair Herbert, Founder and CEO. "We believe we have a market-leading product which is evidenced by the traction we are gaining with both institutional and private real estate owners."
Coast Energy is focusing on the C&I solar market for several strategic reasons:
- Underserved commercial markets – over 70% of CRE buildings qualify, but less than 15% currently benefit from solar
- Shortage of financing non-Investment Grade ("IG") entities – while markets typically focus on IG entities, Coast Energy's proprietary underwriting and non-traditional capital enable financing of both IG and non-IG (unrated credit) entities
- Non-energy CapEx financing need – Coast Energy's unique capital structuring allows for atypical non-solar financing
- Immediate property value increase – commercial solar systems can add $1M, or more, to the value of a property
"Coast Energy is a relationship-focused company predicated on building trust with our clients and partners," said Blair Herbert. "We want to help CRE customers realize the greatest value of their properties while also utilizing a clean source of power. Many clients and institutions are exploring ESG initiatives and Coast Energy is here to serve that need, and as a result, help communities and the environment."
For more information, visit www.coastenergy.com
About Coast Energy
Coast Energy is a rapidly growing commercial and industrial ("C&I") solar energy firm that offers innovative solutions that provide solar energy to properties while driving significant value to owners and disrupting the way building owners purchase electricity.
The Coast Energy team has more than 50 years of combined solar industry experience and has participated in over $1 billion in solar transactions. The company offers C&I real estate owners a simpler path to solar energy. By removing cost barriers and the hassle associated with installing solar systems, Coast Energy offers tailored solutions to CRE owners that add immediate value to their properties.
SOURCE Coast Energy
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