SOURCE: The Sol Project Finance Journal, June 2016

15 Jun 2016


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 June 2016 edition. To receive future Journals, please email


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




Maryland – On May 27, Governor Larry Hogan vetoed a very moderate increase to the state’s renewable portfolio standard (RPS). The first opportunity for the legislature to override the veto will take place in January 2017. If an override occurs, the RPS will increase from 20% by 2022 to 25% by 2020, and the solar carve-out will increase from 2% to 2.5% by 2020. Meanwhile, concerns regarding oversupply are exacerbated by the 1.7GW PJM interconnection queue; although, historical build rates and new demand economics for many individual projects suggest that the queue may be largely a graveyard of uneconomic projects unlikely to be revived.

New Jersey – Legislation (S2276) that would accelerate the solar carve-out schedule within the RPS passed unanimously through the Senate Committee on Environment and Energy on June 6. If ultimately passed and signed into law by Governor Christie, the New Jersey solar industry would be better equipped to meet its build rate potential since the solar investment tax credit (ITC) extension. Without the carve-out acceleration, demand for solar in New Jersey begins to slow next year. In other supply news PSE&G has announced plans for 100MW of solar on brownfields, and the Board of Public Utilities (BPU) is now accepting subsection (r) “expressions of interest” (due on July 15) for new Grid Supply projects. New Jersey is also one of our favorite markets for merchant opportunities.

Rhode Island – Certificates of Eligibility have been offered for the first round of National Grid’s 2016 RE Growth Program. Bids will be accepted for the second enrollment between July 18 and July 29. Developers in need of financing for winning bids – or those looking to submit bids for the second enrollment – should contact our team at We’d be happy to help.


  • Massachusetts Department of Energy Resources (DOER) is making progress in its efforts to design a lower cost solar incentive program to succeed SREC II. Interested parties may share verbal comments at the next public listening session, which will take place on June 22 in Boston. The deadline to submit written comments to the DOER is June 30.
  • It’s that time of the year. We are now approaching the tipping point whereby larger scale projects able to reach 2016 commercial operation are becoming few and far between. Bring on the 2017 pipeline.
  • Pending legislation increasing D.C.’s RPS to 50% by 2032 will have its second reading on June 21. If passed, the D.C. RPS would be on par with other leading states for renewable mandates such as California, New York, Vermont, Oregon, and Hawaii. Who’s next? In other interesting D.C. news, green roofs – which are very highly incentivized as a storm water management tool – are outcompeting solar for already limited rooftop space, even with high SREC prices.
  • Will module prices soften at the end of 2016? We may see manufacturers offering discounts if purchase orders are signed before December 31.
  • Southeast solar is starting to pencil, but mostly in the form of large utility procurements, which create lumpy development cycles. Uncertainty regarding the future of similar procurements in California have led many in the industry to put a shine on their old projects and shop them around anew.


Sol Systems is a leading solar energy investment and development firm with an established reputation for integrity and reliability. The company has financed approximately 450MW of solar projects, and manages over $500 million in assets on behalf of insurance companies, utilities, banks, and Fortune 500 companies.

Sol Systems works with its corporate and institutional clients to develop customized energy procurement solutions, and to architect and deploy structured investments in the solar asset class with a dedicated team of investment professionals, lawyers, accountants, engineers, and project finance analysts.

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Sara Rafalson

Sara Rafalson