Why Is Financing Commercial Solar So Difficult?
Financing any solar project is a challenge, but funding commercial solar projects is particularly difficult. The question is why—but a quick analysis shows it isn’t all that difficult to understand.
After all, the solar industry is littered with the hollowed out hulls of companies that garnered significant investments on the strength of business plans that just didn’t work out. Unfortunately, those cautionary tales still ring in the ears of many traditional lenders, making them skittish about the next solar project developer that walks in the door.
That’s why the most forward-thinking companies in the industry are developing their own pool of investment capital, either on their own or with the support of deep-pocketed partners.
In fact, Standard Solar has $310 million in low-cost capital thanks to the generous support of international energy giant Énergir, which we can use—and have used to fund commercial projects of all types, whether it was helping Washington D.C. become the first LEED Platinum-certified city in the world or helping the City of Gallup N.M., use a hundred-year flood plain to offset the city’s electricity costs.
Now, the concept of in-house financing is relatively new to the solar industry outside of enormous companies for whom solar might be an amusing sidelight. But for those companies for whom solar is a primary focus with well-established reputations for success in project development, the idea is a no-brainer.
We explore the idea of commercial solar financing in depth in our new eBook, Commercial Solar Financing – The Definitive Guide. To get your free copy, click here today.