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NAREIM DIALOGUES SPRING 2017 11 IS NOW The military's leadership and progress is commendable, but it is also key to recognizing the many in the private sector who are also leading by example. Hurricane Sandy was a major instigator to these efforts. According to CNN Money, the total cost of property damage from this super storm is estimated to run between $10-20 billion, but the cost of business interruption can go as high as $25 billion. Major operations up and down the East Coast were shut down. Local utilities in places like Delaware, New York, New Jersey and Connecticut could not provide reliable power to customers for weeks. Whether it was big box stores, office buildings, or data centers, finding the fuel to put into their diesel generators was nearly impossible as they competed against hospitals and military operations during the clean up. As a result, many companies stepped back and re-evaluated their operations. Companies like Wal-Mart, Google, and Prologis set significant goals like utilizing nearly 100% renewable energy for their operations, and also looked at critical measures for reliability. Google is on track to reach this goal in 2017, while receiving serious cost savings along the way. Prologis reported in 2015 that it has over 149 MW of solar generating capacity. Being a mega-corporation should not be a requirement to be a part of this effort as commercial and industrial real estate comes in all shapes and sizes. There are some key lessons though that can be learned from the military and these corporations. They include some of the following: • ESTABLISH AN ENERGY STRATEGY it is important to look at things holistically. Combining things like energy efficiency and renewable energy can make it most effective. • DON'T GO IT ALONE In a capital constrained environment, looking at partnerships and acquisition methods like Solar Leases or Power Purchase Agreements can be ways to utilize others expertise, de-risk the project, and actually save money. The world is at a transformative moment in terms of how we produce and use electricity. Global powers are experiencing a major shift in how their electricity is being produced. V Taking Action These lessons have many applications. For portfolio managers, they can look to take steps in addressing their energy needs. For investors, there are real opportunities as well. The key to continued growth of the clean energy sector will be investment. President George W. Bush's former Secretary of Treasury, and former Goldman Sachs CEO, Hank Paulson points to the opportunity in "green investing" in his latest op-ed in the New York Times. $90 trillion is a large price tag, but it should not be seen as a bill, rather a worthy investment. The good news is clean energy proves to be a great investment and is already outpacing capital in fossil fuels thanks to large institutional financial backing. Despite this rapid growth, there is still a dramatic funding gap, and in order to bridge that gap, we need to be able to access the collective private capital available and capitalize on the clean energy revolution. At CleanCapital, we look at solar and other clean energy projects as an asset class similar to a real estate asset, our due diligence and underwriting is similar to what is widely practiced in private equity funds, and our asset management resembles what is done by REITs. Solar is a great investment because the yields are real. This is the unique opportunity that operating, cash-flowing solar projects provide, and they can be a great investment for a broad set of investors. Data models now provide significant clarity on the revenue coming in over the life of solar projects that comprise these deals. Institutional investors, family offices, or even individuals, who may not like the risk exposure of new build projects can now get into solar through operating assets. This is the evolution of solar finance. CleanCapital is accelerating clean energy by creating an online marketplace that provides opportunities for investors and access to capital for project developers, through a fintech platform that is simple, safe and secure. CleanCapital is reaching the next phase of solar energy by providing everyone access to these lucrative investment opportunities and funding the clean energy economy. Learn about upcoming investment opportunities by contacting us at CleanCapital. Jon Powers is an Iraq Veteran and Co-Founder of CleanCapital. He also served in the White House as the Chief Sustainability Officer of the Federal Government and also as the US Army's first Special Advisor on Energy. Kevin Johnson is an Iraq Veteran and Co-Founder of CleanCapital. Kevin, a West Point graduate, transitioned from the military and lead M&A and business development for several of the world's largest renewable energy companies.