Abstract: The present invention provides a hybrid financing structure for renewable power facilities that reduces the cost of power supplied from such facilities. In a preferred embodiment, the hybrid financing structure combines low cost financing, e.g., bonds, available to governmental entities, e.g., municipalities, with tax benefits and similar benefits available to private entities to lower the cost of power supplied from a renewable power facility. The renewable power facility is owned and operated by a private company to take advantage of tax benefits and similar benefits available to the private sector. To further reduce costs, a municipality prepays for power supplied from the facility using low cost financing, e.g., tax exempt bonds, available to the municipality.