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#1
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Philip Parba
01-01-2014 07:05 AM

What is the most effective type of solar financing?

What is the most effective type of solar financing?
01-01-2014 09:21 AM
Top #2
Philip Parba
01-01-2014 09:21 AM
This question is meant to share ideas and solutions in the pursuit of the development of the utility industry. I strongly encourage everyone to make your voices heard as all comments will be published in the form on an ebook for distribution to all members of this group and relevant stakeholders worldwide. That offers massive marketing publicity for yourself and for the company you are representing. looking forward to your support and cooperation!
01-01-2014 12:10 PM
Top #3
Martin Cressey
01-01-2014 12:10 PM
Hello I am currently offering renewable lease funding from £1m upwards
Where there is any feed in tariff and export tariff availble these can be the required payments for a lease,typically 10 years.The remaining term of the tariff is payable to the client.
If there are no tariffs available the client must show payments can be met with no risk assigned.(energy savings can obviously offset.
If the tariff repayment method is used then there is NO CAPITAL OUTLAY.
Please contact me for further information.
01-01-2014 02:15 PM
Top #4
jiwan sondhi
01-01-2014 02:15 PM
Please contact me at jiwansodhi@gmail.com for lease funding in india
01-01-2014 04:17 PM
Top #5
Gordon Terlier
01-01-2014 04:17 PM
I will be very happy to manufacture our world renowned high quality Canadian made solar panels to any project in the global markets.
Celebrating my 16th year in global sales in the PV solar industry manufacturing for all markets globally, to date my personal sales of 143 MW sold and 32 MW pending .
Feel free to contact me.
Always interested in new projects & opportunities.
Gordon Terlier
01-01-2014 07:01 PM
Top #6
Sven Drillenburg Lelijveld
01-01-2014 07:01 PM
Among many other things, risk minimalisation and transparency of solar projects is certainly part of an effective finance plan. Do not only show strenghts of your project but also (possible) weaknesses. Bring them up yourself, of course with a suggestion to mitigate risks. And add failures from the past (herewith lessons learnt) to your corporate story. It will lead to long term relations with financiers, instead of casino capital.
01-01-2014 09:32 PM
Top #7
Bhuwenesh Gupta
01-01-2014 09:32 PM
The answer to your question depends on kind of solar project you are referring to:

If it is grid connected solar PV plant feeding solar energy to grid and one have secured a PPA then I would say it will have to be debt financing with about 20-30% promoter investment in equity. The interest cost of debt will vary based on financial strength of the promoter and previous project implementation experience. The lower the cost of debt higher project IRRs one should expect. Further lower promoter equity investment also increases project IRRs. The cost of debt will also depend on the counter party which has issued the PPA.

But if one is setting up a rooftop solar project, operating lease financing could be the best option. The lease financing cost will again depend on the promoter's financial strength. And one can also avail of 100% financing with 0% upfront investment. Depending on the lease term, the cost of leasing can turn out to be lower than the energy cost paid by the promoter.

Both types of projects stated above are now being discussed by various utility companies around the world.

I hope this initiates more relevant discussion.
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