Pathward Financial Results Presentation Deck
SOLAR / ALTERNATIVE ENERGY
TAX ADVANTAGES IN RENEWABLE ENERGY PORTFOLIO
RENEWABLE ENERGY INVESTMENT TAX CREDIT (ITC)
The solar and fuel cell ITC is an important federal policy mechanism
to support the growth of solar energy in the U.S.
Since the ITC was enacted in 2006, the U.S. solar industry alone has
grown by more than 10,000%¹
The ITC is based on the amount of investment in the solar or fuel
cell project
Both the solar and fuel cell ITC are currently equal to 26% of the basis
that is invested in eligible property which has begun construction
through 2022.
Originated $38.5 million and $20.0 million in ITC eligible
alternative energy sale-leasebacks for the first and second
quarter of 2021, that resulted in $15.5 million in total net ITC,
respectively.
80% of ITC in Q1 & Q2 were solar transactions with the remaining 20%
fuel cells.
Project is Leased
to a Solar Developer
↑
ITC Recognized
Project Financing
(Construction)
MetaBank Purchases
the Project
●
●
ADVANTAGES OF RENEWABLE ENERGY LENDING
PERMANENT DEBT FINANCING
MetaBank provides permanent debt financing via United
States Department of Agriculture (USDA) Guaranteed Loan
Programs
All USDA loans carry an 80 percent loan guaranty during
MetaBank's 2021 fiscal year.
Safe and conservative lending characteristics
-
Loan-to-Value ("LTV") is low averaging approx. 40%-60%
Each project includes a long-term Power Purchase Agreement
("PPA") often with publicly rated utility providers
Having long-term PPAS and low LTV generates predictable cash
flow and safeguards the loan's debt service coverage capability
Originated $8.1 million and $42.3 million in USDA solar
loans for the first and second quarter of 2021, respectively
At times, MetaBank may sell the USDA-guaranteed portion of
the loan to an outside investor.
Sell USDA
Guaranteed
Portion
Project
Financing
(Construction)
Permanent
Financing via USDA
Loan
¹Source: Solar Energy Industries Association® Solar Investment Tax Credit (ITC) Fact Sheet https://www.seia.org/sites/default/files/2021-01/SEIA-ITC-Factsheet-2021-Jan.pdf
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QUARTERLY INVESTOR UPDATE | SECOND QUARTER FISCAL YEAR 2021 | NASDAQ: CASHView entire presentation