Commercial-scale solar is the new media darling these days. Industry and mainstream news media have reported projections of a sector “ready to rebound” and “cleared for take-off.” Some outlets have quoted industry executives saying things like “our next big growth area” and “this investment reflects growing optimism about the C&I sector.”
Glowing optimism about commercial-scale solar at Sol Systems is backed by our nearly 200MW of financing arranged for commercial and small utility scale projects ranging primarily from 200kW – 5MW (sometimes up to 10MW). We are hearing from more and more investors who are ready to explore this asset class, and are interested in our track record of aggregating, investing in, and financing this market segment.
We believe our days of blogging about how underserved this sector of the market is (despite its promise) could be numbered now. But, what exactly is that potential?
To answer that question, Sol Systems dove deep into research from industry sources including Bloomberg New Energy Finance (BNEF), Greentech Media Research (GTM) and Solar Energy Industries Association (SEIA). We compared projections and historical cost estimates from all sources to Sol Systems’ own pipeline.
The answer? We estimate, conservatively, that the commercial and small-utility sector of the market will grow to $4.9 billion by the end of 2015, and $5.7 billion in 2016. But, you won’t get it handed to you on a silver plate. This sector is ripe with opportunity and equally riddled with challenges. Let’s crack the code together.
This is an excerpt from our June 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 firstname.lastname@example.org.
ABOUT SOL SYSTEMS
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for nearly 200MW of distributed generation 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. For more information, please visit www.solsystems.com.