Hannon Armstrong

ASSET CLASSES

Hannon Armstrong is a leading investor in sustainable infrastructure,
including energy efficiency and renewable energy.

Target Markets

Federal Government
State & Local Government
Commercial & Industrial

20+ Years

Investment
Experience

We invest in energy efficiency solutions that generate permanent cost savings for our clients and long term cashflows for Hannon Armstrong. Building improvements include upgraded lighting, thermostats, air conditioning systems, water fixtures and insulation. Hannon Armstrong funds the upfront capital requirements and the cost savings typically exceed the required repayments. Typically, our financing is secured by the installed improvements and supported by a performance guarantee from the energy service companies that upgrade the buildings.

Energy Efficiency is the cheapest energy resource in the U.S.

Levelized Cost of Energy1
Lazard, 2015
Over 90% of U.S. lighting has yet to be converted to LEDs, representing:

$50 billion

of potential annual savings
2
Source: DOE, 2015

Our investments have
generated energy savings
equivalent to upgrading over:

Incandescent light
bulbs to LEDs
3
EPA

Equivalent to replacing over:

of all U.S. streetlights with LEDs
4
DOE study 2015

CASE STUDY – EFFICIENCY

Public Private Partnership with the City of Louisville, KY for new boilers, HVAC and LED lighting

$26 million

Invested

$2 million

Annual Savings

The efficiency improvements save the City of Louisville $2 million annually.

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COMMERCIAL PACE

Commercial Property Assessed Clean Energy (C-PACE) provides commercial, industrial, nonprofit and multi-family property owners access to affordable, long-term financing for energy efficiency upgrades. C-PACE enables building owners to finance efficiency improvements through a voluntary assessment on their property tax bill. Capital provided under the program is secured by a property lien, which significantly reduces the credit risk and associated cost of capital.

CASE STUDY – C-PACE

Financing of efficiency upgrades for a commercial shopping center

$2 million

Invested

$0.5 million

Annual Savings

In 2016, Hannon Armstrong announced a partnership with CounterPointe Sustainable Real Estate, LLC to work jointly on C-PACE opportunities. The partnership will combine Hannon Armstrong’s deep experience and relationship base in the efficiency and renewable energy markets with CounterPointe’s PACE relationships and comprehensive knowledge of commercial real estate finance.

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Target Markets

Utility Scale
Distributed

20+ Years

Investment
Experience

Hannon Armstrong makes investments in wind projects across the U.S. that are supported by long term power purchase agreements with high credit quality utilities and corporations. Investments are tailored to specific partner objectives. Our flexible financing structures leverage opportunities such as the purchase of project cash flows after our partners have realized their tax benefits.

Investment ($)


Energy (MWh)

Power Purchase
Payments ($)

Wind is the cheapest form of electricity generation across much of the U.S.5
Source: University of Texas, 2016

Levelized Cost of Energy without subsidies1
Lazard, 2015
In 2015, wind accounted for more new power generating capacity than any other
resource
6
Federal Energy Regulatory Commission

HANNON ARMSTRONG HAS INVESTED IN

Stacking 2, 0 0 0 wind turbines would stretch two-thirds of the way to the International Space Station

CASE STUDY – PREFERRED EQUITY INVESTMENT

Investment in 10 operating utility scale wind projects

$144 million

Invested

Over 800

Turbines

The wind projects power the equivalent of 200,000 homes annually.

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CASE STUDY – BALANCE OF PLANT


Purchased land and other right of ways for a utility scale wind farm

$30 million

Invested

200 MW

Wind Project


Hannon Armstrong will lease the land and right of ways to the project company on a long term lease.

Target Markets

Utility Scale
Commercial & Industrial

20+ Years

Investment
Experience

Hannon Armstrong invests in solar projects that are supported by long term power
purchase contracts with utilities, commercial electricity users and/or residential homeowners.

and other project investors

Investment ($)

Power Purchase Payment ($)

Commercial & Industrial Scale Solar

Hannon Armstrong also invests in land under utility scale solar projects and receives lease payments from project owners.

Purchases Land

Land Lease

Lease Payment ($)

Utility Scale Solar Project

Utility scale solar is now cost competitive with natural gas on an unsubsidized basis

Levelized Cost of Energy without subsidies1
Lazard, 2015

$30 Billion

2015 U.S. Solar Market
7
Source: UNEP, Bloomberg New Energy Finance

HANNON ARMSTRONG HAS INVESTED IN

Equivalent to installing solar on every home in Idaho

CASE STUDY – UTILITY SCALE SOLAR LAND PURCHASE

Acquisition of land and lease streams underlying 60 projects

$107 million

Invested

7,500

Acres


The land leases are supported by over 1.2GW across 60 utility scale solar and wind projects.

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CASE STUDY – COMMERCIAL SCALE SOLAR EQUITY INVESTMENT

Equity investment in a portfolio of fully contracted commercial and industrial scale projects

$15 million

Invested

7.3MW

Initial Portfolio

SUSTAINABLE INFRASTRUCTURE

Target Markets

Transmission and Communication Infastructure
Stormwater Remediation
Water Infastructure

2003

First Investment

Hannon Armstrong focuses on sustainable infrastructure investments that enable the efficient use of natural resources.

Hannon Armstrong invests in sustainable infrastructure projects such as transmission lines and stormwater remediation projects. We focus on assets that provide an essential public service, have contractually committed cashflows, maintain a strategic competitive advantage and have low sensitivity to cyclical volatility.