This is an excerpt from EERE Network News, a weekly electronic newsletter.

August 18, 2004

Business Model Benefits Small Wind Investors

An innovative "hybrid business plan," developed by Cooperative Development Services in Wisconsin, may help small investors, farmers, and landowners develop wind projects. The model details the steps for small investors to join together with a larger investor in need of a tax write-off. Under the model, the investors would form an LLC that would loan the larger investor money to help fund the purchase of the installation of the wind project. The LLC would be paid interest for ten years—the term in which the larger company could use the federal tax credits. After ten years the larger corporation would give ownership of the operation to the LLC as payment for principal owed. "Both parties would come out ahead," according to Mary Meyers of Cooperative Development Services. For the report summary or to request copies of the full report, see the Focus on Energy Web site.