Sol Systems Logo
Menu

Posts Tagged ‘Sol Systems’

How Real is the MA SREC II Crunch?

You’ve all heard about the rush for allocations in the Massachusetts SREC-II market.  The outstanding question is just how real the project queue is. We feel there are two categories of projects likely to churn out of the program, creating an initial source of massive churn in the next few weeks and an ongoing source of more limited churn for what could be as much as a year.  Projects that are, in fact, holding on to a quality interconnection agreement and ready for near-term construction start have more than a glimmer of hope for successful SREC-II qualification.

Churn #1 – The Unbaked

As we discussed in our previous blog entry on this subject, there’s been a massive rush of applications over the last 4 weeks:

1.    On Tuesday, January 5th, the Massachusetts Department of Energy Resources (DOER) announced that 120MW would be set aside in the SREC-II program for projects under 25kW. This left a little over 250MW for those greater than 25kW.

2.    On Monday, January 25th, that 250 became 100.

3.    On Monday, February 1st, that 100 became 22.

4.    On Monday, February 8th, that 22 will become 0. And so begins the wait list.

So: about 450 MW of applications in a month. These all could be legitimate and headed for ultimate approval! But that would be unusual.

Take a look at this graph below. On the far left, applications “under review”, with no qualification date. Next to them, “pending” applications of greater and greater age. (Unlike the slug of January applications currently piled up at DOER, pending applications have passed at least initial review, have an interconnection agreement, and have received an Assurance of Qualification. They haven’t, however, gone online. You can see the approved portion of the rush of applications here in the 0 – 30 and 30 – 60 bins.)

unnamed

The graph is sorted by 30 day bins of age.

Now, let’s look how quickly real, complete, projects go online in a typical Massachusetts month – backwards looking, over the last year, for systems bigger than 25 kW. It looks like a typical month of C&I buildout in Massachusetts is in the neighborhood of 15 – 20 MW here

unnamed2

Short version, in the most recent 60 days? Almost 450 MW of applications hit the program when you’d expect to see about 40 MW of ones that turn into real projects.

It seems unlikely that the number of fully-baked, ready-to-roll, shovel-ready, choose-your-metaphor-indicating-completeness projects has increased by a factor of 10 in the past few weeks.

You should probably assume a significant proportion of the unapproved applications are eliminated in just the next few weeks – a conservative guess would amount to wiping out today’s “negative” cap, but not taking many new applications off of the waiting list. For applicants as of perhaps right now, this “Churn #1” likely takes the program from “oversubscribed” to “fully subscribed.”

Churn #2 – The Unfinished.

Now, keep in mind that there are two ends of the approval process where a project can fail. Projects that do have a compliant and complete application are in the light blue bins above, aging away. Qualification starts a 9 month clock to completion, and we all know that not every solar project makes it. Though DOER has historically proven reasonable in offering extensions to projects that are very close to completion, you should anticipate that as projects march down this “conveyor belt” to the right, some will fall off for not being even close. Currently there’s 340 MW on this part of the conveyor, and of them, 40MW are more than 270 days beyond their SQA date. We don’t know how many are subject to some modest extension, but not all of them will get these extensions, and this bin grows all the time as projects “move to the right” without “disappearing” due to completion.

In fact, you have to wonder how many projects in the 200MW that jammed in the SREC door in the last 60 days were hoping to not obtain their SQAs until later in the development process. These projects could have other critical pieces missing or delayed (e.g. PILOTs, permits, financing, or just as critical and limited net metering approvals), and had been hoping not to start that 9 month clock until their hand was forced. They’re probably more risky than the typical applicant.

All we can say is the 0 – 30 and 30 – 60 bins are each 100 MW when again a typical number would be 20. That’s another 180 MW of projects above the average we’d expect. Of course there will be some “pull through” that increases throughput above the average, and  no matter what we’ll only get to see these “freed up” as many as nine months from now.

The Takeaway

image029

Massachusetts just saw a giant surge of SREC applications  - enough to cap out the program and start a 10 month waiting list beyond that .  However, interconnection agreement execution and other bottlenecks mean we don’t think that this correlates well to a giant surge of projects – and while applications take up room for a while, only real projects ultimately cap out the program.

Over the next 2 to 6 weeks, historical numbers would suggest that the industrious dairymaids at DOER churn the program down from the 190MW+ backlog to zero, and in fact better than zero – up to perhaps a few months of typical headroom (Up to 6 months if they’re all utterly noncompliant, but we have concerns that some may be “Hail Mary” applications with interconnection and key permits but not much else going for them). I’ve marked this as “Churn 1″.  Anticipate it to cut down in a big way – and soon – but not cashing in all the “excess” projects.

As that is being put to use, another few weeks of typical installation should be expected to free up in the next month or so as a subset of the oldest unbuilt approvals lose their status. Here, I’ve marked these “Churn 2”, with a total reprieve now expected through perhaps June.

Unfortunately, another ~ 6 months of program room will be occupied by the “Churn 3” projects, which will continue to take up room whether they are likely or not until perhaps October – and their owners will have little incentive to give up their spots.  Further, some “Churn 1” projects won’t be immediately released, but will stall here, again until the Summer.

The real question will be how this intersects with Massachusetts’ legislative timeframes for a more permanent fix.  It could also be too optimistic if there’s major “pull-forward” and the state’s typically 15 – 20 MW monthly C&I market surges forward.

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 include tax structured investments, project acquisition, and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 5000 list of the nation’s fastest-growing private companies for a third consecutive year. For more information, please visit www.solsystems.com.

Massachusetts SREC Program is Hitting its Cap…Again

Mad Rush

Bring on the mad rush to qualify for SREC II. Hurry up before it’s too late!

In case you haven’t heard, the Massachusetts SREC-II program is a mere 22MW away from reaching its cap.

You may be asking yourselves what happened. So were we… until we did some digging. Here’s how it happened:

  1. On Tuesday, January 5th, the Massachusetts Department of Energy Resources (DOER) announced that 120MW would be set aside in the SREC-II program for projects under 25kW. This left a little over 250MW for all other projects over 25kW before reaching former Governor Patrick’s goal (and the overall SREC program’s cap) of 1,600MW.
  2. On Monday, January 25th, the DOER released an updated Solar Carve-Out II Qualified Units list. Only a little over 100MW were left of the 250MW from two weeks earlier.
  3. On Monday, February 1st, the DOER again released its weekly Solar Carve-Out II Qualified list, sharing that only 22MW were left for projects over 25kW. Only slightly over 94MW of the 120MW remains for projects under 25kW in the small solar set aside.

Wow. That’s some drastic growth. The caps are filling up quickly, but how do we separate the “real” from the “aspirational” projects?

Qualifying Units List: Explained

In the DOER’s qualified units list, systems are separated out into three categories:

1)    Solar energy systems with a MA RPS ID# currently generating SRECs;

2)    Systems with a pending application status, meaning they have been awarded an Assurance of Qualification (AOQ) but have not received a State of Qualification (SOQ) because they are not yet operating and generating SRECs;

3)    Systems with an application under review, meaning an application has been submitted but the DOER has not completed its review.

Systems that are under review are waiting to be notified by the DOER of the application’s completeness. This generally happens within a few weeks of the application being submitted. If an application is incomplete, then the entity who filed the application will have two weeks to cure any deficiencies. If a deficiency is not cured within that period, then the application will be rejected. Keep in mind a complete application includes an executed interconnection agreement!

Any systems in the pending stage most likely have been granted a nine (9) month window to reach commercial operation (COD). If these projects are unable to be completed in that time, they may apply for an extension.

Will All Qualifying Units Make the Cut?

On the DOER’s most recent list from February 1st, 140MW of system applications were Under Review (63MW of which are in National Grid) and another 340MW of systems (of which 195MW are in National Grid) are categorized as having a Pending status.

In other words, not all of the projects currently in the Qualified Units list are necessarily qualified for the Massachusetts SREC II program.  Instead, developers operating in Massachusetts – a top 3 solar state in Q3 2015 and #6 in the country overall – noticed the limited capacity left in the SREC-II program and acted accordingly. They shuffled through their own “active projects” lists and submitted applications for any projects with a recently executed interconnection agreement  – or any projects with the hope of having an executed interconnection agreement within the next few weeks. A mad rush appears to be underway, similar to what the state saw as the SREC-I program – and net metering allocations – quickly reached their respective caps.

A small glimmer of hope may still exist for projects without SREC allocations. Given this information, we could see systems fall out of the list due to incomplete applications or due to their inability to reach their COD deadlines in time (think National Grid projects that have not secured a NEM cap allocation and are less likely to get an SREC allocation extension).

Still Reading? Stop Now, and Submit Your Application!

The magnitude of such circumstances is unclear, but what is obvious is the value in submitting an application now for any mature projects with the hopes that these projects will eventually move forward from the wait list that is expected to show up on future DOER weekly Solar Carve-Out II Qualified lists.

If you have a project that has received an AOQ or a project under review and don’t have financing, please reach out to our Project Finance team at finance@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 include tax structured investments, project acquisition, and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 5000 list of the nation’s fastest-growing private companies for a third consecutive year. For more information, please visit www.solsystems.com.

Employee Spotlight: Jessica Robbins

Jessie_1

“We are in a transitional moment in the industry”

At Sol Systems, our team is our most valuable asset. Their dedication and passion for bringing creative financing solutions to the solar industry are essential to our company’s success. We are proud to employ some of the brightest talent in the renewable energy sector. This month, we sat down with Jessica Robbins, a Senior Associate on the Tax Equity team, to reflect on her time in the solar industry.

What brought you to Sol Systems?

It was a personal connection with a current Sol Systems employee, Andrew Gilligan, who graduated from the same program at Georgetown as me. He told me about this great, little company over in Dupont Circle that was doing some exciting things with renewable energy and connected me to an internship in January 2012.

When I came to Sol Systems, it immediately became apparent that its private-sector, startup mentality focused on solving problems, creating financing solutions, and figuring out what works and what does not in a continuously evolving industry was a great fit. I ended up coming on full time in July of 2012. I was the fourteenth person to join the company.

How has your role at Sol Systems evolved?

When I joined Sol Systems, I initially did a lot of market research on new incentive programs that were popping up in the United States in 2012. Looking at the successes and failures of different incentives and regulations led me to a lot of questions surrounding the economics underpinning solar financing and the business development of those initiatives. Those questions directed me to working on our project acquisitions team, where I developed relationships with folks who were working on solar projects across the country and looking for financing solutions.

In that role, I became more interested in the structuring and financing of solar projects, which led me to pivot to our tax equity team in 2014. In this role, I conduct project diligence, investment analysis and deal execution for the funds that we are closing and have enjoyed it very much. From 2014 to 2015 our team tripled the amount of capacity we closed, and we are looking forward to another big year in 2016.

What is your favorite part about working at Sol Systems?

Definitely the people, hands down. Although, the work itself is fantastic as well and is a close second. It is important work, and you wake up every morning feeling like you are contributing to a greater purpose than just earning a paycheck. But really, my favorite part is working with such a great team of intelligent, fun people of integrity. They are the highlight for me.

What are your thoughts on the future of the solar industry?

We are in a transitional moment in the industry. The extension of the ITC in December completely lifted the lid off of solar development on a national level. It is going to allow solar to grow exponentially through the next couple of years into a world where we will rely less on the ITC and more on state-driven initiatives resulting from the Clean Power Plan. Now, the industry’s focus will shift to state- or utility-level regulatory battles surrounding net metering, rate design, PURPA implementation, and other issues affecting how solar can be integrated into the grid in the most equitable and economic way.

What do you do outside of work?

Having an artistic, non-work-related outlet is important to me, so I sing in the City Choir of Washington.  We recently had our Christmas concert, a huge two-and-a-half-hour extravaganza with organ, full brass section, and an incredible youth choir (who were potentially better than we were). Anyone in DC should check out our next performance in April!

I am also passionate about clean energy outside of work. I belong to the Clean Energy Leadership Institute, which is a fantastic organization in DC that is an incubator and network for young energy professionals. It has been a great way for me to meet and connect with other likeminded folks in DC and beyond. I would encourage any clean energy professional to check it out for ways to get involved.

Interested in a career with Sol Systems? We are currently seeking a project manager, senior accountant, senior director of project delivery, and summer interns. To learn more about solar energy careers with Sol Systems, please visit our careers page .

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 and project acquisition, to debt financing 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.

SOURCE: The Sol Project Finance Journal, January 2016

2015-04-29-Sol-Cover-Banner2

SOURCE is a monthly solar project finance journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains solar statistics from current real-life solar projects, trends, and observations gained through monthly interviews with our solar project finance team, and it incorporates news from a variety of industry resources.

Below, we have included excerpts from the January 2016 edition.  To receive future Journals, please email pr@solsystems.com.

PROJECT FINANCE STATISTICS

The following statistics represent some high-quality solar projects and portfolios that we are actively reviewing for investment.

Joined


PPA-RATE-Jan

STATE MARKETS

California – Prior to the holiday break, the California Public Utilities Commission issued the proposed decision to net energy metering (NEM) 2.0. The solar industry celebrated; with ITC extension, the Paris climate agreement, and full retail credit in California, how many times did you hear your industry colleagues say “Christmas came early?”

But, hold on. Non-bypassable charges (NBCs) technically mean solar consumers will not receive full retail credit. NBCs would be imposed on solar consumers to cover a utility’s costs of programs; they are not charged to solar consumers under NEM 1.0. Since NBCs would be charged to solar customers on every kWh drawn from the grid, effectively, an additional ~2-5 cents/kWh will be discounted from solar exported to the grid.

With this change, look for the market to move more toward smaller systems and self-consumption. This will also encourage the growth of storage, especially with the lucrative Self-Generation Incentive Program (SGIP) rebate. The final decision is scheduled for January 28, though a surprise public meeting last week has advocates thinking that the path to approval will not be so simple.

In related news, follow CALSEIA for the discussion over Time of Use (TOU) rates, which will have a major impact on project development in 2018 and beyond.

Florida – PPA authorization in the Sunshine State hit a snag after Floridians for Solar Choice, a solar advocate-backed organization, failed to gather enough votes to qualify for a November ballot initiative. Instead, Consumers for Smart Solar (CSS), a utility-funded political action committee, may have their own constitutional amendment make the ballot – pending Supreme Court review. The existence of the conflicting organizations – and their similar-sounding names – has been confusing for consumers. Alas, hope is not lost. Vote Solar, SEIA, and partners are working on another campaign to finally bring more solar to the Sunshine State. Companies interested in getting involved should contact scott@votesolar.org.

Massachusetts – The Massachusetts Department of Energy Resources (DOER) sent notification that 567.7MW of solar energy systems have been qualified or accepted into the SREC II program, or about 60% of the program capacity cap. DOER will set aside about 120MW for smaller scale projects under 25kW. That leaves about 250MW for SREC II, whose cap may be hit as soon as Q3 of this year. Meanwhile, all eyes are still on the Commonwealth’s net metering standstill. Most project development we’re seeing is in NSTAR and WMECO territory – or with municipalities. We are seeing little development within National Grid – even for behind the meter projects. At press time, 85.2MW remain on National Grid’s net metering allocation waiting list.

SOLAR CHATTER

  • The December 18 omnibus bill reinstated bonus depreciation, providing for 50% bonus depreciation through 2017, declining to 40% in 2018 and 30% thereafter. While this is positive news – remember that bonus depreciation is, as the name suggests, only a bonus. Adding bonus depreciation back into the mix will not significantly alter pricing for a given deal, and some investors do not even value it at all.
  • Pricing for the latest Connecticut small ZREC solicitation (<100kW) came in around ~$80/ZREC. If the schedule for medium and large solicitations is to follow years past, bids for medium and large ZRECs will be due in June and announced in July. Meanwhile, several projects that won ZREC projects last summer remain stranded until the state’s municipal virtual net metering cap is lifted.
  • At the end of last year, developers were rushing to lock in equipment orders to avoid 2017 shortages. Will the ITC extension trigger a 2016 oversupply? No way, say analysts.
  • Vermont could become a hot utility-scale market for solar. A new transmission line from Canada – slated to be complete in 2019 – may also mean that the Green Mountain State will get more of its electricity from hydro and wind.
  • Move over, California. Oregon may be the next state to incorporate a 50% renewable portfolio standard. If passed, legislation would also create a community solar program

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 and project acquisition, to debt financing 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.

No Sleep ‘Til…? After ITC, State Battles Take Forefront

In case you have been living in a cave or took a long holiday vacation off-grid (even then, wouldn’t you have heard?), the solar industry landed another three years of ITC at 30%, then 26% in 2020, 22% in 2021, and a permanent 10% for commercial and utility thereafter.

ITC_graph_logo

As we breathe a sigh of relief over this monumental progress at the federal level (thanks, Congress!), state policy setbacks remind us that we cannot afford to take a breather.

Regulatory uncertainty and Nevada’s subsequent decision to apply retroactive charges to all solar customers prompted a slashing of hundreds of solar jobs in the state. New Hampshire and Massachusetts have hit their respective net metering capacity limits in multiple utility territories, effectively putting almost all solar development on a prolonged hold. In Connecticut, municipal projects remain stranded after hitting the state’s virtual net metering cap. In Hawaii, HECO is closing net metering to all new applicants. The list goes on. According to the North Carolina Clean Energy Technology Center, net metering is being examined in over half of the United States.

At the utility-scale level, we see challenges to PURPA, which has been a major driver of development in non-traditional and emerging markets across parts of the Pacific Northwest, Midwest, Southeast, and Western U.S. For the most part, utilities are requesting a reduction in the length of Qualifying Facility (QF) power purchase contracts, undermining developers’ ability to secure long-term financing and potentially rendering these projects un-financeable. For example, in Idaho, regulators gave utilities the green light to reduce PURPA contracts from 20 to 2 years. Rocky Mountain Power is seeking to do the same in Utah, which currently has over 2GW of solar projects in line for PURPA approval.

As these challenges continue, solar companies will keep fighting for regulatory treatment that will allow for predictable growth and stability. However, without clear and consistent policy, the industry is increasingly left searching for ways to bypass the need for utility and PUC support altogether.

Already, solar companies are getting creative, sometimes assuming an absence of net metering from the initial sales proposal. Solar installers and developers are sizing projects closer to demand, or moving toward a model of self-consumption. In other words, developers are trying to minimize the role of the utility by avoiding the export of electrons to the grid at retail rates altogether. This is also where storage could significantly alter the landscape.

On the utility-scale side, developers who have seen growth in PURPA states may increasingly opt for bilateral wholesale power contracts instead of guaranteed utility off-take. Depending on the offtaker, credit quality may remain unchanged, and deals are already getting done with ten-year power contracts in some geographies.

While these shifts may take years to take form, the pipeline we’ve seen so far in 2015 and early 2016 is illustrative of the start of something new. Bring on the next era of solar development.

This is an excerpt from our January 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 and project acquisition, to debt financing 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.

3 Immediate Effects of the ITC Extension on the U.S. Solar Landscape

3Changes2

What does the ITC extension mean for the investment climate in the U.S.?

On December 18th, the U.S. House and Senate passed the Consolidated Appropriations Act of 2016, which included a multi-year extension of the solar investment tax credit (ITC). Now that we have another 5 years of ITC, here are three basics effects the extension will have on the U.S. solar landscape.

1)      More [expensive] tax equity needed

Depending on who you ask (check out forecasts from UBS, GTM, and BNEF), solar capacity may increase by 30-50% over the next five to seven years, creating a strong, stable investment climate for solar assets. The added supply of solar (as well as the reinstatement of both MACRS and wind’s production tax credit) projects will put tax equity investors in higher demand than ever, as we estimate that somewhere around $10 billion in solar tax equity will be needed annually, on average, over the next five to seven years. To put that in perspective, the solar tax equity market in 2015 was sized at approximately $6 billion. This increased demand for tax equity will have a positive effect on yields for these investors. For investors contemplating developing or expanding a tax equity platform, the time is now.

2)      “New” markets

Before the extension of the ITC, we wrote about new markets that have emerged thanks to falling costs, PPA authorization, and other factors. The extension of the ITC will make it possible for solar to flourish in these new markets, as well as markets that have made a comeback, such as Pennsylvania – assuming each works out its respective localized challenges (e.g. net metering battles, property taxes in the Southeast, and PURPA challenges across the West).

3)      SREC price decline in some markets

With the increase in supply made possible by the ITC extension, some SREC markets may experience downward pressure. Most notably, Maryland will see these effects as costs continue to come down and utility-scale projects become easier to build. On top of that, the solar requirement within the Renewable Portfolio Standard (RPS) is stagnant at 2% beginning in 2020.  The combination will result in ample supply until 2020 and oversupply thereafter.

To protect yourself from SREC risk, Sol Systems offers long-term SREC contracts for as long as 15 years. Contact Kate Brandus at info@solsystems.com for information on pricing.

Full Report Available
Are you an investor interested in a more in-depth analysis of the tax equity market under an extended ITC? Contact finance@solsystems.com to set-up a call with our team.

This is an excerpt from our January 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 410MW 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 and project acquisition, to debt financing 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

2016: Rush Hour is Over, But…

RushHour2

Since the ITC extension passed, developers and host customers alike have stopped to ponder: “Why the rush?”

Q4 is always the most intense part of the year for the solar industry, as developers and EPCs rush to complete year-end deadlines. This Q4 was no different. In fact, it was even more so. Financiers all rushed to close 2015 deals. Developers rushed to lock in 2016 pipeline. MUSH hosts were rushing to issue RFPs for projects that could be built by the December 31, 2016 ITC placed in service deadline. Rush, rush, rush.

But then, everything changed.

Since the ITC extension passed, developers and host customers alike have stopped to ponder: “Why the rush?” End users that issued RFPs are asking: “Maybe I should put this project on hold and see if costs come down over the next couple years.” More often than not, we’re seeing these potential solar customers as the ones putting the brakes on a deal to retool it, or even re-shop it.

As for developers, some are noticing that in the mad rush to lock in 2016 pipeline by year-end, key diligence items were overlooked.  If you have a contract for a 2016 project and missed a key item in diligence (“Shoot, how am I interconnecting this thing again?”), by all means, use this short reprieve to take a step back and get your ducks in a row before shopping your project to a financier. But, don’t wait too long. Contracts expire, SREC values decline, and pricing may change as a result. With much delay, lenders may reallocate funds.

Similarly, if the end user is asking for more time to see where the market goes, tell them there is no time like the present. Since 2010, the cost of a solar electric system has gone down by 70% according to Sunshot. Moving forward, the most potential for dramatic costs declines will come from soft cost reductions (permitting, financing, O&M, customer acquisition, etc.) that are challenging to predict.  Moreover, who ​knows if the cost of capital will continue to drop or begin to climb as interest rates rise and YieldCos pause many of their actions in the market.

Solar has some great momentum right now, but remember: there are many unknowns. As the saying goes, a bird in the hand is better than two in the bush. Rush hour is over, but don’t get left behind.

This is an excerpt from our January 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 410MW 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 and project acquisition, to debt financing 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.

Net Metering Round-up: Caps Hit in Key 2017 Markets

Net metering article

According to the NC Clean Energy Technology Center, 27 U.S. states were either studying or changing their net-metering policies in Q3 2015.

Net metering caps are being hit across the Northeast and California. The problem? In a post-ITC world, these [now uncertain] markets are expected to be the most robust for commercial and industrial (C&I) solar (visualize it at Raceto2017.com).

In late November, the Massachusetts State House and Senate failed to come to an agreement on legislation to lift the state’s net metering caps. The industry now looks to January to see if any action can be taken. In the meantime, the future of Q3’s #3 solar market – with 963MW and 9,400 solar jobs – is at risk. And with the race to have projects placed in service by December 31, 2016, Massachusetts will fall far short from achieving the record-shattering 2016 that was expected. The market remains in limbo, with few exceptions.

In California, reports predict that San Diego Gas and Electric could hit their net energy metering cap in mid-2016, Southern California Edison in Q1 2017, and Pacific Gas and Electric in the third quarter of 2016. The CPUC is expected to make a decision on net metering 2.0 any day now, and the industry is watching. Stay tuned to CALSEIA for details.

In lower profile markets, Connecticut, has surged to a top 15 solar market (#11 in Q3 2015), largely thanks to its successful ZREC program [with which solar development coincides]. Unfortunately, however, the $10 million municipal virtual net metering (VNM) cap has been hit, and it was hit quickly. Unlike Massachusetts, for example, where information on the available megawatts is listed publicly on the web, Connecticut’s is not readily available– and handling of expired or ineligible projects can be very nontransparent. Moreover, 11 projects, many of which were awarded ZREC contracts this summer, were left “stranded” given this cap. The Renewable Energy and Efficiency Business Association (REEBA) is calling for the cap to be increased to $60M to allow these shovel-ready projects to proceed, and to bring development to the 2017 finish line.

In August, we reported that New Hampshire was nearing its 50MW net metering cap [after taking over a decade to reach 2MW]. On the C&I side, the market has grown significantly due in part to a successful rebate program for projects up to 500kW. Liberty Utilities and the New Hampshire Electric Cooperative have hit their respective caps on net metered customers, and Eversource, the state’s largest utility, will soon hit its own cap; 6.1MW remain at press time.

This problem is not going away any time soon. The NC Clean Energy Technology Center recently reported that 27 U.S. states were either studying or changing their net-metering policies in the third quarter of 2015.

The solution to a more long-term, sustainable market? Data-based, careful rate design that’s fair for the individual (even if that means some demand charges must be thrown in). This is why increasingly, solar companies are ensuring they’re intervening in the rate cases. Once a rate has been carefully designed and established, the rationale for any cap disappears. We’re confident the result of any such process looks a lot more like current net metering than otherwise – especially for low-exporting C&I solar systems.

For more information on state net metering policies and grades, visit IREC and Vote Solar’s FreeingtheGrid.org.

This is an excerpt from our December 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 375MW 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 and project acquisition, to debt financing 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.

Sol Systems COO Stephanie Smith Recognized with Female Executive Award

DSC_0890

Sol’s Stephanie Smith speaks on the panel at the Women in Solar Energy (WISE) SPI Breakfast

We know that Sol’s Stephanie Smith is great, but it’s still nice to get a plaque confirming it. The 2015 Stevie Awards for Women in Business were announced last month, and Sol Systems COO Stephanie Smith won a Gold Stevie Award for Female Executive of the Year. The Stevie Awards for Women in Business are open to all businesses worldwide, honoring outstanding achievement by women in each industry. Award winners are selected by over 200 judges and five specialized final-judging committees.

Smith, who has been with the company since 2012, has played a pivotal role in the strategic development and expansion of the Sol Systems team, which has grown almost 500 percent during her tenure as COO. In January 2015, Smith opened Sol Systems’ West Coast office in San Francisco.

Smith was a 2014 finalist for the Clean Energy Education and Empowerment (C3E) award, recognizing women’s leadership and achievement in clean energy. Before joining Sol Systems, Smith won the 2012 Client Service All-Star award at BTI Consulting Group.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for over 375MW 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 and project acquisition, to debt financing 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.

RunWithSOLar5k Proceeds Run Directly to GRID Alternatives and The Solar Foundation

Thanks to all of the dedicated members of the industry that braved the storm (literally) to kick-off Solar Power International (SPI) 2015 with the first-ever RunWithSOLar5k. Even with the rain, the event sold-out.

The best part (besides rain in dry Southern California)? 100 percent of registration fees went directly to The Solar Foundation and GRID Alternatives. Last week, Sol Systems’ CEO Yuri Horwitz and CFO George Ashton, along with Rhone Rhesch, President of CEO of the Solar Energy Industries Association (SEIA), met with GRID Alternatives and The Solar Foundation to present the proceeds.

12046923_1053321988021054_8453870266905829765_n

Yuri Horwitz and George Ashton presenting the 5k proceeds to GRID Alternatives and The Solar Foundation

Thanks to everyone involved; we hope to see you next year.

For more information on Sol Systems’ Giving that Matters program, visit our page.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

New York PSC Raises Net Metering Caps until Solar’s Value Can Be Determined

DSC_2191

The lift of net metering caps will apply to all six of New York’s investor-owned utilities, and will become effective on November 6th

On Thursday, October 15th, the New York Public Service Commission (NY PSC) ruled to temporarily lift caps on the amount of net-metered solar energy that can be permitted on a utility system. New York does not find itself in as dire of a situation as Massachusetts, where net metering caps have been hit in the state’s largest utility territory (National Grid). Nevertheless, a July filing by Orange and Rockland Utilities (ORU) prompted the movement by the NY PSC to avoid such a situation. The lift of net metering caps will apply to all six of New York’s investor-owned utilities, and will become effective on November 6th following the filing of tariff revisions implementing this ruling by each utility by October 30th.

The July filing from very small municipal utility ORU requested to suspend net metering for solar installations after they noticed their pool of interconnection applications exceeded their limit of 6% or 62MW.  The proposal by ORU would have implemented a “buy-all, sell-all” approach to interconnection and metering where a customer with a solar installation would buy all of their electricity at the retail rate and sell all of the system’s generation output at a wholesale rate. The NY PSC found this approach inadequate for addressing the needs of the flourishing solar industry in New York.

In addition, rather than increasing the caps to an artificially set level as they have done in the past, the NY PSC decided the temporary lift the cap to an undetermined level would provide a more adequate solution until the Commission could better understand the value of distributed energy resources under New York’s Reforming the Energy Vision (REV) initiative, slated for the end of 2016.  This apparently reflects the thinking of several Commissions and utility consultants that retail net metering is a sort of “rough justice” that approximates the value of net metering to the system.  After all, an elaborate ratemaking process has already occurred to establish the value and cost of an electron at the meter. If there is no inherent subsidy in net metering, there is less rationale for a cap.  This argument is further reinforced in New York, where large demand and capacity charges tend to offset the percentage of the bill that is offset by any netting.

What About Megawatt Block?

With the net metering barrier now out of the way, it remains to be seen how successful New York developers can be under the NYSERDA Megawatt Block incentive program, which Sol Systems still believes is set at inadequate incentive levels. As promised earlier this year, NY-Sun held a Stakeholder Meeting on Monday, October 26th to discuss the progress of and updates on the MW Block Commercial and Industrial (C&I) incentives. This meeting provided participants an opportunity to share information on program activity, regulatory developments, and market conditions.

Although falling short of our goal to receive a commitment to increasing the incentive levels from NY-Sun, Sol Systems felt the meeting was productive for continuing to relay our strong message – one we have found we share with most solar industry companies across the state. Our team will continue to provide input to NY-Sun and NYSERDA on how we believe the program should be changed to allow for a more successful and burgeoning C&I market in New York. Stay tuned…

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

What does the American Energy Innovation Act mean for the Solar Investment Tax Credit?

energy

The American Energy Innovation Act would extend the critical solar investment tax credit (ITC), but also give the option for facilities to choose between the ITC and a Production Tax Credit (PTC).

If you’re wondering what might happen to America’s solar industry if the solar Investment Tax Credit (ITC) is allowed to expire at the end of next year, you’re not alone. With pressure coming from an industry of 174,000 (more than Facebook, Apple, and Google combined) and both ends of the political spectrum, Congress should be paying attention too.

Last month, a group of prominent Democrats in the U.S. Senate released a draft version of what they are calling the American Energy Innovation Act. The draft legislation, which faces long odds in a Congress whose majority refuses to accept the economic benefits of clean energy, provides a framework for developing a clean energy economy and achieving significant reductions in carbon emissions. In the bill, the Senators outline a proactive and diverse approach to investment, research, and development, signaling the common-sense policies a clean energy-friendly Congress would take to secure a sustainable energy future.

Solar in the Spotlight

Solar gets a huge shout-out in the American Energy Innovation Act. First and foremost, the bill would extend the critical solar investment tax credit (ITC), but also give the option for facilities to choose between the ITC and a Production Tax Credit (PTC).

This bill represents some of several ongoing legislative efforts to extend the ITC, but many have said that this particular bill is more of a public display of support for smart clean energy policies.

Looking further down the road though, the American Energy Innovation Act offers consumers, workers, and companies in the U.S. a tremendous array (pun intended) of opportunities to boost solar energy development. From expanding access to community solar to funding job training programs, the bill would fundamentally change solar energy production and distribution in America. Take a look at some of the specifics:

  • Each year for the next 15 years, $200 million would be invested in solar installation job training programs.
  • The Federal Trade Commission would be required to seek out and end interconnection practices that impede distributed generation.
  • Through amendments to PURPA, community solar plants up to 2MW in size would become legal nationwide.

These initiatives would help provide the solar industry with the market stability it craves while also comprehensively addressing the needs of a quickly evolving energy industry that faces tough environmental challenges. And though the draft American Energy Innovation Act is a promising glimpse into potential U.S. energy policy, unfortunately for the clean energy industry, it’s still just a bill.

To learn more about the solar ITC and how you or your company can help keep solar competitive, visit www.Raceto2017.com.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

Hungry, Hungry Yieldcos Hit a Snag

yield

Now that YieldCos have hit a snag, where will all of the projects go?

Unless you are living under a rock, you may have seen the news that YieldCos, the most hyped financing vehicle of the past several years, have run into a few snags. Cost of capital has increased for many, and their already tight standards for projects have in some cases gotten even tighter.

We work with YieldCos for some of our largest projects. They are a useful and incredibly powerful tool, but not the all-encompassing, all-purpose tool that some in the media originally made them out to be.  A large and well-made socket wrench, but not a Leatherman, if you will.  We have written about some of their shortcomings before and predicted that a snag would occur in 2015.  The New York Times also had a sold write-up last week for those who want a more thorough read. But, from the perspective of developers that we work with, one downside of selling projects into YieldCos has been the waiting period as investors assemble a portfolio of individual projects, together with, upon NTP, the layers upon layers of approvals a project must go through before any individual payment is made. This can make directing cash flow to construction a slower process, and one in which developers must keep hosts waiting and placated until given hurdles are cleared.

One potential limitation for YieldCos – and developers who work with them– is the tight “credit box” they require. This means that projects on schools, religious institutions, non-profits, small businesses, and others often do not qualify.

What do these snags mean for the solar industry? For one, developers that had previously been selling their projects more or less exclusively to YieldCos are reconsidering tax efficient capital as a means to finance their deals. Instead of waiting for YieldCos to reprice their deals under new market conditions, the YieldCo train has left the station for some developers, and developers are rebooking their projects elsewhere.

Got a stranded project? Contact our team at finance@solsystems.com, and we’ll take a look.

This is an excerpt from our October 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 333MW 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 and project acquisition, to debt financing 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.

Word to the Wise: Choose Your RFPs Carefully

RFP

Don’t be like this guy. Choose your RFPs carefully.

Increasingly, we are seeing more RFPs for MUSH projects. As developers out there certainly know, RFPs can be tough and highly competitive. On the one hand, a developer may bid too high and lose. On the other hand, RFPs are often a race to the bottom. A developer may bid in low, win, but never actually build the project because their bids are too low for the project to pencil with a financier (we estimate that there are dozens of megawatts held-up in New York at this time for this very reason). The key to winning on price is knowing where that middle ground is. (That is why we encourage developers to check-in with us on pricing before submitting an RFP.  We will also bid in and offer our reputation, financial security, experience and other tools as necessary for trusted partners.)

But, even then, submitting materials into an RFP is a time consuming effort, and a dangerous one if they are a developer’s primary means of securing business. For one, time from RFP issuance to award to COD runs so long that often the market looks completely different when it’s all said and done, and then the developer can get caught footing the bill.

RFPs can be especially challenging for local and regional developers. Chances are that if you Google “solar RFPs” and find one, another company – perhaps one with a lower cost of capital and cheaper build costs – has already found it as well. In these cases, a local or regional developer should read the RFP carefully to understand what the host values most; some may prefer the race to the bottom pricing, while others may value “buying local” and may prefer to work with a local player over a national giant.  In these race to the bottom RFPs, having a differentiator – whatever that may be for your company – is key. For example, national players often opt-out of bidding into projects with unconventional credit profiles, or where volume is achieved from a larger number of smaller sites. Another advantage local players have is if a project is dependent on renewable energy credits (RECs).

Lastly, we are seeing some hosts issue RFPs to check industry viability without a clear commitment to execute in the near term. If you carefully examine the introductory text, you may sometimes find key phrases that sound like, “Sure, this whole solar thing seems cool. Let’s issue an RFP and see how much it would cost.” We are glad that, more and more, potential hosts are testing the solar waters. But, before you put too much time into a given proposal, read carefully. Recently, we saw an RFP with copied and pasted language from another public opportunity, except that the host neglected to update the document with its own name on some pages, and also described the project as in the PJM interconnection – but it was located in the Deep South! If issuers are not detail-oriented enough to proofread their own work, we recommend being mindful of your company’s time before pursuing such opportunities.

This is an excerpt from our October 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 333MW 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 and project acquisition, to debt financing 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.

Round Two is No Déjà Vu. What You Need to Know About the IL Supplemental Procurement.

Looking up from the base of the Sears Tower.

After the successful June 2015 procurement , the Illinois solar industry is racing toward the second round of the three-part SREC Procurement

Now is the time to act for the second of three procurements in Illinois.

After the successful June 2015 procurement , the Illinois solar industry is racing toward the second round of the three-part SREC Procurement. Driving growth of new, distributed solar generation remains the goal, but there are several key differences from the June procurement. In short, these include:

  1. an increase in the amount of money available from $5 million to $10 million;
  2. an increase in the maximum system size to 2 MW; and
  3. no maximum bid size per bidder.

Like June, the procurement will be broken into several size categories to achieve the goal of procuring 50% of the SRECs from systems smaller than 25kW. Systems must have been energized after January 21st, 2015 and be located behind a customer’s utility meter.

SRECs continue to be a vital piece of solar financing in IL, especially as the previously available state grant shows no signs of returning in the foreseeable future.  Nearly all of the $5 million available in June was spent, and we expect the November procurement to see heavy demand as well.  This procurement and the third round scheduled for March of 2016 will be key events to watch as uncertainty around the state’s policy framework adds to precariousness around the impact of the ITC step down.

Sol Systems will participate again as an Aggregator in the November procurement. Already, we are working with individual customers, installers, and developers to place bids in all size categories.  Additionally, we are working with installers to place speculative bids in the small size category.

For this procurement, the IPA’s published schedule actually places the first major deadlines in late October. In line with that schedule Sol Systems will be accepting new customer registrations until October 20th.

Bid into the Illinois SREC Procurement

The Illinois solar renewable energy credit (SREC) market is preparing for take-off. The Illinois Power Agency (IPA) will procure $30 million in SRECs from Illinois-sited systems this June and November, and in March 2016, and Sol Systems is here to help.

In June, our team will submit bids on behalf of customers in all three categories: <25kW,  25kW up to500kW and 500kW up to 2MW . To qualify for the Procurement, systems must be energized after January 21, 2015..

Learn more below, and contact info@solsystems.com if you have any questions. Installers interested in placing Speculative Bids should contact eric.stam@solsystems.com

About the Illinois SREC Procurement

  1. What is the Illinois SREC Procurement?
  2. What kind of SREC contract can I secure?
  3. Does my solar energy project have to be a certain size to participate?
  4. How do I sign up for the Illinois SREC Procurement?
  5. What deadlines should I be aware of?

Eligibility

  1. Who can participate in the Illinois SREC Procurement?
  2. I live outside of Illinois, but I have an Illinois certification number. Can I still participate?
  3. What size solar energy systems are eligible to bid into the Procurement?
  4. What kind of meter is my system required to have?
  5. Is my system required to have remote monitoring?

Bidding

  1. What is the difference between a speculative bid and an identified bid?
  2. What are some important bid rules?
  3. Will you bid my system at exactly the price I send you?
  4. How much will I be paid per SREC?
    What should I bid?
  5. What is Sol Systems fee?
  6. How do I calculate how many SRECs to bid?
  7. Do I have to post credit?
  8. Will I get my deposit back?

Next Steps after Bid Submission

  1. What happens if I have a winning bid?
  2. What important dates should I be aware of?
  3. What are the registration requirements?
  4. How will monthly meter readings be reported? Will I have to do it?
  5. When will I get paid?
  6. What happens if I bid and lose?

General

1. What is the Illinois SREC Procurement?

The Illinois Power Agency is hold a $30 million procurement for solar renewable energy credits (SRECs) from photovoltaic solar systems. The procurement will take place over 3 events starting in June 2015 ($5m spent), followed by November 2015 ($10m), and March ’16 ($15m). The focus of the procurement is on new systems and small systems with a target of 50% of procured SRECs generated by systems smaller than 25kW.

2. What kind of SREC contract can I secure?

Through the procurement, the IPA will award five year contracts with fixed payments, for up to a maximum quantity of SRECs. “Up to Maximum Quantity” means there is no penalty for under producing and no ability to sell more than the Maximum Quantity to the IPA. A customer can sell their SRECs until the maximum quantity or the five year term is reached, whichever comes first.

3. Does my solar energy project have to be a certain size to participate?

No, the small size category only specifies that systems are below 25kW in nameplate capacity (DC). There is a maximum size, 500kW for the June event and 2MW for November and March.

4. How do I sign up for the Illinois SREC Procurement?

Customers can sign up by registering through Sol Systems’ website. Once the online registration is complete, Customers will receive a contract which they can sign and retrun to Sol Systems by email, fax or mail. Addresses and our fax number are:

Sol Systems is working with many installers and developers in IL, and you may be able to sign up with Sol Systems directly through them. Please ask your installer to find out more or contact Sol Systems at info@solsystems.com

5. What deadlines should I be aware of?

Bid submissions are due to Sol Systems by October 20th by 6 pm EST.

You can find the full calendar of dates and deadlines for the procurement see the IPA’s Supplemental PV calendar here: http://ipa-energyrfp.com/calendar/

Eligibility

1. Who can participate?

Eligible solar energy systems must be new, which means they must be energized on or after January 21, 2015 to bid into the Procurement. Systems must also be distributed which means they must be located behind the customers utility meter and be smaller than 2MW. Systems must also be installed by a “qualified person,” which is defined in the law authorizing the Supplemental Procurement, the Illinois Power Agency Act Section 1-56 (20 ILCS 3855/1-56(i)), and is a slightly more stringent standard than is currently in place.

2. I live outside of Illinois, but I have an Illinois certification number. Can I still participate?

Unfortunately not. All solar energy systems must be located in Illinois and must be interconnected with an electric utility, alternative retail electric supplier, municipal utility, or a rural electric cooperative; Sol Systems will aggregate systems located in either MISO or PJM interconnection territory; roughly speaking, Ameren Illinois customers are in MISO territory and ComEd customers are in PJM territory.

3. What size solar energy systems are eligible to bid into the Procurement?

In June, solar energy systems must be in one of two size categories:

a. Smaller than 25kW (50% of SRECs procured); or

b. Between 25kW and 500kW (50% of SRECs procured)

In November, solar energy system systems will be broken into the following size categories:

  1. Smaller than 25kW (50%)
  2. Between 25kW and 500kW (15%)
  3. Between 500kW and 2MW (35%)

In March 2016, solar energy system systems will be broken into the following size categories:

a. Smaller than 25kW (50%) ; or

b. Between 25kW and 2MW (50%)

4. What kind of meter is my system required to have?

Systems must have a revenue quality meter with accuracy as defined by IPA. Click here for the IPA’s requirements for revenue quality meters. Note that there requirements do depend on system size and systems below 10kW which will be registering with the GATS registry may use inverter readings from an inverter that meets the IPA’s accuracy standards. No systems registering with the M-RETS registry may use inverter readings. 5. Is my system required to have Remote Monitoring?

If your system is larger than 20kW, it must have remote monitoring.

Bidding

1. What is the difference between a speculative bid and an identified bid?

Speculative bids are only possible for systems smaller than 25kW. A speculative bid is a bid which only specifies a quantity of RECs and a price per REC. It does not identify the system from which the RECs will come.

2. What are some important bid rules?

  1. The minimum size for bid blocks is 500 RECs, which is approximately 80kW.
  2. In the small size category, all RECS in a single block must be bid at a uniform price.
  3. In the large size category, systems are bid with a specific price per system.
  4. An Identified bid is a bid which identifies the system which will generate the RECs, the quantity of RECs and the price per RECs. The system is identified with information such as physical address, interconnecting utility, planned nameplate capacity. The system does not yet have to be installed or energized to be bid as an Identified System.

3. Will you bid my system at exactly the price I send you?

If your system is above 25kW we will enter your bid with the exact bid price you have. provided to us.

If your system is below 25kW, your system will be grouped with others to reach the minimum bid size of 500 RECs (which is approximately 80kW). Groupings will be determined by the bid prices submitted as well as the overall range of bid sizes and prices. Our goal is to form the most competitive groups possible. However, we will treat the bid price you have provided to us as a minimum bid price and will not put you in a grouping with a lower price.

4. What should I bid?

You should bid the price that makes your project financially feasible. If your project is already built you should bid a price that would result in a meaningful (to you) reduction in the time required to recoup your investment.

When determining your bid price, make sure to account for Sol Systems’ fees, listed below.

5. What is Sol Systems’ fee?

For winning bids, Sol Systems will charge a fee per SREC based on the winning bid price. For Systems smaller than 25kW the fee will be 11% or $10, whichever is greater on a per SREC basis. For systems larger than 25kW the fee will be 9% or $10, whichever is greater on a per SREC basis. Customers who do not have winning bids, will not be charged an additional fee.

6. How do I calculate how many SRECs to bid?

All systems will use the same formula to calculate the quantity of RECs they bid, based on their nameplate capacity. That bid quantity will be calculated as: (Planned Installed Capacity / 1000) x .1438 (the Assumed Capacity Factor) x 8760 kilowatt hours hours x 5 years. When customers register online, this calculation will be done automatically for them.

7. Do I have to post credit?

Any Sol Systems’ customer bidding identified systems will not have to make any credit deposit to place a bid. If you have a winning bid, you will be asked to deposit $4/SREC as the required post-bid credit.

The procurement does have several credit posting requirements: $16/REC for speculative bids and $8/REC for identified bids. Half of the required credit is due at the time of bid submittal.

Installers or Developers placing Speculative bids will post credit as a part of submitting a bid to Sol Systems.

8. Will I get my deposit back?

Yes, if you have a winning bid and are required to post credit, the credit will be refunded along with your first payment for SRECs. If you’ve place a speculative bid, and your bid does not win, your credit deposit will be refunded once IPA has returned the deposit to Sol Systems.

Next Steps after Bid Submission

1. What happens if I have a winning bid?

Once your system is turned on, you will need to submit your approved interconnection agreement to Sol Systems. If your system does not have remote monitoring installed you will report meter readings once a month via your Customer Dashboard on Sol Systems’ online platform.

2. What important dates should I be aware of?

Installers and developers placing speculative bids have six months to identify the systems which will generate RECs to fulfill the speculative bid. Once identified, systems must be energized and registered with GATS/M-RETS within 12 months

Solar energy systems with winning identified bids must be energized and registered with GATS or M-RETS within 12 months of the bid date. Sol Systems will handle these registrations.

3. What are the registration requirements?

Once Sol Systems has received all the necessary information from the customer or installer, we will handle all state and regulatory registration requirements on behalf of any customers with winning bids. There is no additional fee for this process.

4. How will monthly meter readings be reported? Will I have to do it?

Sol Systems will handle submission of meter readings to PJM-GATS or M-RETS on a monthly basis. Meter readings are the way by which SRECs will be measured so that IPA knows how any SRECs you should be awarded and paid for.

Depending on the requirements of the tracking registry and whether your systems has remote monitoring installed, winners may be required to report information to Sol Systems on a monthly basis via Sol Systems’ online Customer Dashboard.

5. When will I get paid?

Payments will be issued on a quarterly basis. Sol Systems processes payments at the end of each month in February, May, August, and November. Payments are also received from the IPA on a quarterly schedule, and Sol Systems will pay customers in the payment month immediately after it has received payment from the IPA. For example, if IPA issues payment to Sol Systems in December, the customer will receive payment in the February cycle.

6. What happens if I bid and lose?

If you first bid does not win in June, Sol Systems will bid your SRECs again in the November event. Before we place another bid for you, you will have the opportunity to confirm or change your bid price.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

SOURCE: The Sol Project Finance Journal, September 2015

2015-04-29-Sol-Cover-Banner2

SOURCE is a monthly solar project finance journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains solar statistics from current real-life solar projects, trends, and observations gained through monthly interviews with our solar project finance team, and it incorporates news from a variety of industry resources.

Below, we have included excerpts from the September 2015 edition.  To receive future Journals, please email pr@solsystems.com.

PROJECT FINANCE STATISTICS

The following statistics represent some high-quality solar projects and portfolios that we are actively reviewing for investment.

Screen Shot 2015-09-24 at 9.16.14 AM



PPA-RATE-Sept

 

 

STATE MARKETS

California – Massachusetts is not the only state that’s hit its net metering caps. In California, solar’s #1 market, San Diego Gas and Electric has only 147MW remaining, which some have predicted will only last for another six months. Sage Renew predicts that Pacific Gas and Electric (PG&E) will hit its cap in late Q3 2016, and Southern California Edison will hit its cap in Q1 2017. Some have called the report pessimistic, but with the ITC project rush, it’s anyone’s guess. In brighter news, California passed legislation to increase the state’s renewable portfolio standard (RPS) to 50% by 2030. Distributed generation does not count toward the mandatory component of the RPS.

New York– Poor economics means that Megawatt Block’s Commercial and Industrial (C&I) block is still stalled for takeoff, with only 1.8MW submitted in Con Edison territory out of 15MW. (Someone dropped out; last month we counted 4MW submitted). In the rest of the state, 98MW remains. For those of you who have reached out to us thinking that you’ve seen more development than that, the bar graphs do not lie. Unfortunately, the development you may have been seeing for commercial scale has been for virtually net metered (VNM) deals that were allowed to proceed before VNM was limited in the state. Thankfully, a movement is brewing to correct the Megawatt Block incentive levels for C&I. And, Sol’s very own Anna Noucas was recently elected to NYSEIA and will be fighting the C&I fight on behalf of Sol Systems and our partners.

North Carolina – RIP, North Carolina state tax credit. As part of a budget compromise, the 35% tax credit in the country’s #4 solar market will die at the end of this year. Projects that are already 80% finished when the year ends, but are not completed until early 2016, will still qualify for the credit under the “soft landing” provision from earlier this year. Applications for soft landing are quickly approaching; read up on our past article to see if you qualify. Unfortunately, many projects do not qualify and that will not be built by end of this year may never be built at all. Deals that do make it to the December 31 finish line must be aggressively structured to meet investors’ return hurdles in light of changing market conditions. Sol Systems will continue to operate in this market.

SOLAR CHATTER

  • Cue the Lego Movie soundtrack. Everything is Awesome in the solar industry…for now. One theme rang consistent at almost all of our SPI meetings: things are going well, business is booming, but 2017 is looming. Developers and investors alike are beginning to devise their ITC strategies, and how to survive in a post-ITC world. Here’s a refresher on our market forecasts after December 31, 2016
  • Cost of capital is more important to growing the solar industry than technology-based cost improvements according to a recent study by the European Photovoltaic Technology Platform (EUPVTP).
  • Time to #ActonClimate? CitiBank thinks so. A report from America’s third largest bank, says the world will save $1.8 trillion dollars by acting on climate. That means inaction is a $1.8 trillion mistake.
  • Thanks to the hard work of the Clean Energy States Alliance (CESA), a new IRS ruling is paving the way for community solar to take advantage of the federal investment tax credit (ITC).
  • SPI was abuzz with excitement over merchant deals. Remote and merchant offtake projects are actually selling…and in real volume.
  • And the acquisitions keep on rollin’. Locus Energy, the remote monitoring software and O&M provider, was acquired by GenScape. Draker was acquired by BlueNRGY Group.
  • Net metering caps are looming. Is your state next? Check out recent analysis from EQ Research, which also includes an interactive map of each state’s available net metering allocation.
  • More from the SPI rumor mill… There have been some complaints that certain investor counterparties are closing deals, but have not been able to pay on time. In many cases, we spoke to developers who are awaiting payment for closed projects as the investor waits for the funds to come in.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

Solar Shines Through The Rain At Solar Power International

DSC_0412

All registration fees for the 5k went towards supporting GRID Alternatives and the Solar Foundation

Pouring rain could not stop most from waking up extra early to take on the streets of Anaheim with the impressive determination, good humor, and speed that are hallmarks of the solar energy industry. Thank you to everyone who had a part in making the #RunWithSOLar5K a fun and healthy way to start off SPI 2015!

The event was sold out, and 100% of the registration fees, which will be posted by SEIA and SEPA in the coming weeks, will be donated to the Solar Foundation and GRID Alternatives. The two organizations continue to do vital work to bring solar energy and jobs to all communities.

Congratulations to the winners! Everyone’s results may be found here.

1 - Race Winners

Run with SOLar 5k winners John Beard and Emma Kosciak

Overall

1st           John Beard

2nd          Emma Kosciak

3rd          Cameron Crowe

Men

1st           John Beard

2nd          Cameron Crowe

3rd           Alex Ward

Women

1st           Emma Kosciak

2nd          Trisha Elizando

3rd           Anna Noucas

Teams

1st           Sol Systems

2nd          EnterSolar

3rd           Kyocera Solar

IMPORTANT NOTE REGARDING YOUR “PACE” TIME:  Thanks to a misplaced cone, we all got a little “bonus” distance to make this a 5KPlus race. So, your pace time is based on 3.5 miles.

To recognize the race winners, Sol Systems is buying and retiring an SREC in the PJM region for each individual winner, and one for each winning team in order to offset carbon emissions. Individual winners will also receive a gift card to purchase running gear from a national sports store.

Thank you again, and all the best to you all for a successful and healthy wrap up to 2015!

Sol Systems

Solar Power International

SEIA

SEPA

The Solar Foundation

GRID Alternatives

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 333MW 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 and project acquisition, to debt financing 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.

When to Go Local in Lending

shutterstock_190988786

In structured finance or cash deals, regional or local lenders may have more competitive offerings than a national bank or debt provider.

In structured finance or cash deals, regional or local lenders may have more competitive offerings than a national bank or debt provider. Often their rates are cheaper by a point or more compared to the traditional debt players in the industry. Some local or regional players may also be more flexible with loan tenors – and may even offer loans for longer than the PPA term. Finally, local lenders may be more comfortable with various state and regional risks, like solar renewable energy credits (SRECs) or other incentives that larger banks may not underwrite.

Local relationships matter. Local lenders may be mission-based in such a way that benefits solar investments. Existing relationships may also make the difference for a developer/investor; for example, developers seeking affordable debt might want to take a look at existing lending relationships at the corporate level or with the host customer. A local lender is more likely to provide an attractive offering if they already understand and work with the parties in question, even if they are unfamiliar with solar generally. Developer and investors alike may be pleasantly surprised with the affordability and flexibility.

For mainstream, clean-cut projects, it is still best to work with institutional lenders capable of writing big checks and handling the complexity of other parties at the table, like tax equity investors. If you have a debt partner already, it is best to hold onto that relationship and not let them go; there is a dollar value one can put on efficiencies that arise from repeat business. But if you are working on a project that falls outside of the typical 5MW+ box, especially in a common solar state, it may be a good idea to think local.

This is an excerpt from our August 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 262MW 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 and project acquisition, to debt financing 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.

SOURCE: The Sol Project Finance Journal, August 2015

2015-04-29-Sol-Cover-Banner2

SOURCE is a monthly solar project finance journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains solar statistics from current real-life solar projects, trends, and observations gained through monthly interviews with our solar project finance team, and it incorporates news from a variety of industry resources.

Below, we have included excerpts from the August 2015 edition.  To receive future Journals, please email pr@solsystems.com.

PROJECT FINANCE STATISTICS

The following statistics represent some high-quality solar projects and portfolios that we are actively reviewing for investment.

Combination

*Our all-in price statistics exclude projects from Ontario, Hawaii, the U.S. Virgin Islands, and Puerto Rico where all-in prices remain over $3.50/W.



PPA-RATE-Aug

STATE MARKETS

Georgia – We’ve got Georgia on our minds, and you should too. Bids for Georgia Power’s Advanced Solar Initiative Distributed Generation (ASI DG) Program, which aims for 100MW of solar, closed on August 10. Yet, one of the three bidding groups, Group C, encompassing systems under 100kW, came in undersubscribed. Developers will have until October 27 to find sites to fulfill the remaining 5.7MW. Want to succeed in this bidding group? Aggregate these projects into a 1MW+ portfolio to make them more attractive to investors.  With investment grade offtake, low build costs, and high solar irradiance, these deals should be promising. Meanwhile, third party financing is now live in the Peach State (thank you, HB 57!). Due to net metering restrictions, these projects are most attractive when behind the meter.

Massachusetts Step in line to grab your seat on the solar coaster. In July, State Senator Downing introduced legislation to raise the net metering caps until the state’s 1600MW goal is met. Then, on August 7, Governor Baker introduced his own legislation to raise the caps by 2%. National Grid estimates that Governor Baker’s cap increase would only last the solar industry until October. If you’re thinking that would bring us back to where we are right now in just a couple months, you’re right.

Even more, the Governor’s bill would transition solar from a net metering credit valued at the full retail rate to an avoided cost rate after the 1600MW goal is met. Undoubtedly, this would deliver a long-term blow to the Commonwealth’s solar industry. Massachusetts developers, why aren’t you looking at smooth, reliable, sustainable Maryland again?

New York – We have long heralded that the Megawatt Block is a beautifully designed incentive program – if only rates were high enough for projects to pencil. Since opening in May, its commercial and industrial (C&I) block for projects over 200kW has produced merely 4MW of deals in Con Edison territory, and about 17MW in the rest of the state; the overall capacity potential for the first block is 135MW. To understand how underwhelming the results have been thus far, compare it to Massachusetts, which can fill another 205MW cap increase in NGrid territory by October. Each incentive block will need to be raised by approximately 20 cents if the Empire State’s C&I market is going to take flight. Until then, it’s still stalled for takeoff.

SOLAR CHATTER

  • Hillary Clinton is calling for a 700% increase in solar production by 2020. Is this realistic without an ITC extension?.
  • Massachusetts is not the only state whose growth is threatened by a net metering cap. New Hampshire, which took over a decade to reach 2MW of solar production, is nearing its 50MW net metering cap. Unlike Massachusetts, however, legislative action appears unlikely, at least for now. Too bad; this New Hampshire heavy office was digging that C&I rebate program for projects up to 500kW.
  • Still think YieldCos are solar finance’s magic wand? TerraForm’s shares dropped 17% after its August 6 earnings call, and the debut of TerraForm Global fell short of expectations – currently selling at $10.20 per share. After going public at $21 per share, 8Point3 Energy Partners now trades just above $15.
  • The Latin American solar market continues to boom, with over 363MW of utility-scale solar coming online in Q2 2015.
  • Back from the dead? Commercial deals are starting to re-emerge in Hawaii after the Public Utilities Commission forced Hawaiian Electric Co. (HECO) to release the queue of interconnections that they froze last year. Proper diligence on the distribution circuit should still be conducted when one is applying for interconnection, and it is still important to set expectations; interconnection will still take much longer than it does in other states.
  • Changes to Pacific Gas & Electric’s A-6 tariff have been delayed until the end of 2016. The changes may still slash economics for Northern California projects in the 75kW – 500kW range by about 30%, according to Sage Renewable Energy Consulting.
  • It’s hot over there, yet the solar market is freezing. In Arizona, proposed changes to net metering would compensate facilities at wholesale rates for excess generation. Tucson Electric Power (TEP) withdrew this request but plans to pursue it once again for a 2017 rate case, and, here’s the kicker – they will request for the change to be retroactive to June 2015. Expect for this uncertainty to chill the market. Many developers that we work with are already flocking outside of Arizona in search of better opportunities.

ABOUT SOL SYSTEMS

Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 262MW 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 and project acquisition, to debt financing 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.

Module Shortage Rumors Fly…Again

MODULE SHORTAGE

This panel shortage is similar to the same “shortage” we have seen the second half of every year

Last month, Intersolar North America was buzzing with word that tier 1 module suppliers were completely booked through the end of the year for 300 Watt plus modules. Is there any truth to this?

There could be. Big solar deals abroad are eating panel supplies of tier 1 suppliers. Domestically, U.S. solar developers are rushing to complete deals by the end of 2016. But more likely, this panel shortage is similar to the same “shortage” we have seen – and written about – the second half of every year. The cyclical nature of solar financing (many investors are not aware of their yearly tax appetite until Q2) makes solar development, and thus equipment procurement, cyclical as well.  As developers execute EPC agreements and rush to complete projects by investors’ end-of-year deadlines, this domino effect puts module manufacturers in the driver’s seat each calendar year.

That doesn’t make the shortage any less real for those who have yet to purchase modules, or for EPCs without a master supplier contract or close-knit manufacturer relationships. If panels become unavailable, swapping one tier 1 for another tier 1 is common. We have seen this happen with a couple deals so far this summer, and investors accept this swap without issue.

Still, deciding to make a switch should be done early, after consultation with the project’s investor. Purchase orders should be locked in as soon as possible to ensure you stick to your construction schedule and avoid damages. EPCs up against a quick timeline should assess the risk and purchase early, assuming their balance sheet can handle the purchase before milestone payments.

While exaggerated panic surrounds a module shortage each year, perhaps more pressing is a possible shortage of other electrical equipment. Medium voltage equipment or specialized interconnection facilities are crafted by a more meticulous process than modules which have a standardized manufacturing process that can be easily ramped up.

Solar development rewards those who are proactive rather than reactive. Plan ahead, and avoid any possible equipment shortages or future price gauges.

This is an excerpt from our August 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 262MW 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 and project acquisition, to debt financing 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.