Finance companies buying utility scale solar projects

Who participates in the financing of solar projects?

Developers, independent power producers, solar panel manufacturers, engineering, procurement, and construction (“EPC”) contractors, utility companies, financial investors and, more recently, commercial and industrial end-users all participate in the financing of solar projects in different manners and at different times.

Can a solar project get financing?

All solar industry participants are well advised to remain on the lookout for issues that may impact a project’s ability to obtain financing, regardless of where in the pipeline or life cycle the project is. Financing can be viewed as the epicenter of all aspects of project development.

Why do solar projects need a power purchase agreement?

Lower project operational risk means improved access to low-cost debt, which means the project is likely to be able to offer attractive rates back to TfL. Power purchase agreements are key to the majority of utility-scale solar projects and a variety of other larger renewable energy projects.

Are solar projects financed with debt?

Debt Financing. A. Overview. Though the prevalence of debt financing has perhaps been overshadowed in the solar industry by its cousin tax equity (more on that below), most solar projects are financed at some point in their life cycle with some manner of debt.

Who owns a solar plant?

With few exceptions, the seller is a special purpose entity (often called an “SPV” or the “project company”) that owns and operates the solar plant that will generate energy and environmental attributes (“output”).

Should you buy solar panels in bulk?

Additionally, purchasing solar panels in bulk may be cheaper! Another potential benefit for solar developers is in the sale of the project. A developer may sell the project at a variety of stages, from pre-development to ready-to-build, to operational.