Lease Agreements and Power Purchase Agreements

3 Months Ended

Feb. 28, 2018

Leases [Abstract]

Lease Agreements and Power Purchase Agreements

Lease Agreements and Power Purchase Agreements

Lease Agreements

As of February 28, 2018, the Partnership’s unaudited condensed consolidated financial statements include approximately 5,800 residential lease agreements which have original terms of 20 years and are classified as either operating or sales-type leases. In addition, the lease agreement for the Maryland Solar Project has a lease term that will expire on December 31, 2019, and the lessee, who is an affiliate of First Solar, is obligated to pay a fixed amount of rent that is set based on the expected operations of the plant.

The following table presents the Partnership’s minimum future rental receipts on operating leases placed in service as of February 28, 2018:

(in thousands)	2018 (remaining nine months)		2019		2020		2021		2022		Thereafter		Total
Minimum future rentals on residential operating leases placed in service (1)	$	2,752	$	3,708	$	3,730	$	3,751	$	3,774	$	38,420	$	56,135
Maryland Solar lease	4,203		4,912		—		—		—		—		9,115
Total operating leases	$	6,955	$	8,620	$	3,730	$	3,751	$	3,774	$	38,420	$	65,250

(1) Minimum future rentals on operating leases placed in service do not include contingent rentals that may be received from customers under agreements that include performance-based incentives and executory costs.

As of February 28, 2018, future maturities of net financing receivables for sales-type leases are as follows:

(in thousands)	2018 (remaining nine months)		2019		2020		2021		2022		Thereafter		Total
Scheduled maturities of minimum lease payments receivable (1)	$	4,322	$	5,618	$	5,707	$	5,799	$	5,894	$	63,769	$	91,109

(1) Minimum future rentals on sales-type leases placed in service do not include contingent rentals that may be received from customers under agreements that include performance-based incentives and executory costs.

Power Purchase Agreements

Under the terms of various PPAs, the Partnership’s contracted counterparties may be obligated to take all or part of the output from the system at stipulated prices over defined periods. All PPAs associated with solar generation systems operating as of February 28, 2018 have no minimum lease payments and all of the rental income under these agreements is recorded as revenue when the electricity is delivered.

SREC Sales Agreement

Under the terms of the Partnership’s SREC Sales Agreement, the contracted counterparty is obligated to purchase an annual number of SRECs from the Partnership at stipulated prices over a defined period of time. As of February 28, 2018, firm sales under the Partnership’s SREC Sales Agreement are as follows:

(in thousands)	2018 (remaining nine months)		2019		2020		2021		2022		Thereafter		Total
SREC sales	$	547	$	781	$	781	$	195	$	—	$	—	$	2,304