Financing for a 120kW Solar Containerized Campsite Project

4 FAQs about Financing for a 120kW Solar Containerized Campsite Project

How does solar project financing work?

Solar projects leverage project finance, using cashflows to repay loans and distribute risks, making renewable energy developments more feasible. Over the past few decades, the landscape of renewable energy project financing has evolved significantly.

Can a pass-through lease monetize solar energy credits?

Pass-through leases, used extensively to monetize the rehabilitation tax credit, have been used recently to monetize solar energy credits (and more recently Treasury grants). Typically, an entity ('Owner”) would acquire a solar energy project from a developer at fair market value.

Can a solar project be financed without a long-term PPA?

While the wind power market has matured significantly in the past five years, leading to the successful project financing of “merchant” projects in the absence of long-term PPAs, Solar Projects are generally not yet able to be project financed in such a manner.

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.