More than a dozen states and municipalities across the Unites States have turned to competitive bidding programs or feed-in tariff (FiT) programs to scale solar investments. For example, Rhode Island and the LA Department of Water and Power (LADWP) are both currently offering attractive FiT programs for qualifying solar projects. Along with tax credits and tax equity financing, solar programs that offer long-term contracts can be important in financing small-scale commercial solar energy projects. Private and public entities utilize RFPs to attract the most qualified developers to fulfill renewable energy allocations, and these are increasing becoming structured as competitive bidding processes rather than simply lottery programs. Several factors can determine which developers win RFPs, including overall strength of application and competitive pricing.
Through our Developer Advisory Services, Sol Systems works alongside its developer partners to strengthen applications for competitive bidding programs. Strong applications exhibit specific characteristics such as site control with the project host, a completed feasibility study, thorough project design details, a clear plan for the financing of the system, and demonstrated experience in completing previous solar projects. Our services identify financial and technical risks for solar projects, and our work with investors provides our team with a heightened understanding of project financeability. Most recently, Sol Systems worked with developers entering National Grid’s Rhode Island’s feed-in tariff program, which aims to add 40 MW of renewable energy capacity, 10 MW of which will be secured this year.
When entering a competitive bidding program, having a strong financial partner increases developers’ chances of succeeding if the program is not solely based on price. Pricing is important as the utility, or other entity running the program, will prefer to pay the least amount possible for the electricity and Renewable Energy Credits (RECs). However, utilities are also realizing that they must also select projects that will actually get built. Furthermore, projects with financing already put in place are usually able to bid in with more clarity on pricing. Sol Systems has worked with developers across several states to provide a variety of financing solutions for solar projects within the 100 kW – 10 MW size range. Our geographic reach and knowledge of federal and state level incentives allows us to provide developers with a wide array of third-party financing options for solar projects. As a financing partner, we are capable of sourcing the most challenging portions of the capital stack such as tax equity, project debt, and SRECs.
Developers with quality projects who are looking to strengthen their competitive bid applications should reach out to Sol Systems for assistance. Sol Systems also works with developers with projects throughout the United States to help them secure financing. Please contact our team at email@example.com or (888) 235-1538 x2.
About Sol Systems
Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.
For more information, please visit www.solsystemscompany.com.