In requests for proposals and otherwise, national, sometimes publicly traded companies often beat out localized partners due to a much lower cost of capital.

In requests for proposals and otherwise, national, sometimes publicly traded companies often beat out localized partners due to a much lower cost of capital.

It is not always easy being a local or regional solar developer going head-to-head with a national giant to win business. In requests for proposals and otherwise, national, sometimes publicly traded companies often beat out localized partners due to a much lower cost of capital. In addition, regional developers – sometimes with a team of 10 people or fewer – may not have the balance sheet to fund expensive upfront costs in a deal, such as an interconnection study, geotech, or a PPA deposit.

Still, many potential host customers prefer to “buy local,” giving regional developers the upper hand over the competition. Moreover, the solar landscape is shifting. Trouble with some of the biggest national players provides new opportunity for local and regional developers to increase deal flow. But how do you get that solar project to the finish line?

Enter Sol’s new development capital product. In addition to ultimately financing the solar project, Sol Systems will provide funding for documented third party expenses (e.g. interconnection studies, PPA deposits, and similarly cost intensive development items).

Preferred investment criteria includes portfolios:

  • 10MW in size or more
  • That can reach substantial completion in the next 9-12 months
  • Subject to minimal SREC risk
  • That have or will have offtake
  • With a clear, realistic development path to NTP

As always with Sol Systems, we prefer to partner with developers that will foster long-term relationships rather than one-off transactions.

Give us a call today to get your leg up on the competition, or send an e-mail to William.Graves@solsystems.com. We look forward to hearing from you.

This is an excerpt from the April edition of SOURCE: the Sol Project Finance Journal, a monthly electronic newsletter analyzing the solar industry’s latest trends based on our unique position in the solar financing space. To view the full Journal or subscribe, please e-mail pr@solsystems.com.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for over 400MW of solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments, project acquisition and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 500 list of the nation’s fastest-growing private companies for a second consecutive year, ranking it No. 6 in the nation’s top solar companies in 2014. For more information, please visit www.solsystems.com.