The L3C and Alternative Energy Funding
Financing remains a significant hurdle for the development of renewable energy (RE) projects in the United States, despite the existence of support policies at the state and federal level.
A new approach to RE project financing, one that may sidestep otherwise formidable hurdles can be found in the L3C (Low-Profit Limited Liability Company). As L3C structures are very new, there are no known examples of an L3C structure to support the financing of an RE project. Nonetheless, the L3C organizational structure could potentially help non-profits play a pivotal role in the deployment of proven and emerging RE technologies.
This paper explores the capital requirements of RE projects as they relate to the L3C legal structure, profiles several non-RE L3C ventures operating in the US, and provides a hypothetical RE example.