Solar Energy

Financing solar projects after COVID-19

The secret of health for both mind and body is not to mourn for the past, worry about the future, or anticipate troubles, but to live in the present moment wisely and earnestly. . . Live each moment completely and the future will take care of itself. Fully enjoy the wonder and beauty of each moment.  Yogananda

On Saturday, I had a call with a colleague about how he sees financing after the United States opens back up from our coronavirus outbreak. Recently, he has been working on a few projects requiring funding and has been in contact with several banks and financial institutions.  Because I am working on some projects requiring financing, I wanted to hear what he thought about whether COVID-19 would affect funding solar. He felt that solar projects would not be adversely affected if it fits into the particular institution’s portfolio. There is an assortment of different financial institutions, all with portfolios that meet their investor’s requirements.

Whether in renewables or conventional power, energy projects often require substantial amounts of money. Funds must be secured to move ahead with the various phases of completing such large-scale projects. From planning to purchasing to installing equipment when obtaining the capital needed for staff, the operation and maintenance of the systems installed. In essence, investors often support such projects every step of the way.
 

Debt solutions range from senior secured corporate loans and structured investment financing (leases and loans) to infrastructure and project financing. Besides, acquisition and financial growth are typically syndicated loans. Things to consider is getting the lowest interest rates while also providing the lowest closing costs.
The most significant incentive for businesses wanting C&I solar is that the solar energy system will pay for itself in around five to seven years (depending on your cost for energy) if they use all the deductions available. Private equity and corporate clients need strategic goals through senior secured loans designed for all business cycles. They have the strength to structure, underwrite, and hold significant positions.
Large solar farms with long-term utility contracts are attracting more institutional investors like insurance companies and pension funds because these are typically low-risk assets and above-market returns. There are several platforms offering developers competitive pricing for their utility-scale solar projects or portfolios, and investors a compelling investment opportunity.

If you are looking for financing or equipment for your specific project, USD would like to have an opportunity to assist. Our team has a master at getting funding for projects, even if they have a few more issues than average. If you give our team an opportunity for financing or equipment purchase, we believe you will be happy with your decision. Please contact Karlita or Robert if you have questions or comments.

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