Solar project developers are striving to get finances from banks and private equity players. Indian banks have very limited financing exposure for solar rooftop projects. So far the banks have over 800 Bn $ exposure and 16% of the assets are stressed assets. Stressed assets are exerting pressure on public Read more…
The RESCO model addresses household or commercial and industrial consumers’ reluctance to purchase solar PV systems due to technical performance risk, high capital costs and lack of access to debt finance by ensuring that they don’t need to pay anything upfront. Instead, the solar developer offering the RESCO requires the Read more…
In the capex model, small consumers buy the solar PV systems encouraged by accelerated tax depreciation benefits. However, if the government phases out accelerated tax depreciation in 2017 as expected, consumers may no longer choose to buy solar PV systems. In addition, the high cost of capital, lack of debt Read more…
PPA default occurs when there is a breach of contract between developer and off-taker. The off-taker may default due to a failure to make agreed payments, failure to perform the contracted obligations, provision of incorrect information in the initial PPA agreement, and shutdown of the off-taker’s business. The developer will Read more…
From 2010 to 2019, the efficiency of modules installed in the United States increased significantly: – 14.4% to 19.4% for mono c-Si – 13.7% to 17.4% for multi c-Si – 11.0% to 17.4% for CdTe. • Based on preliminary data for Q1 2020, the average efficiency of mono c-Si and Read more…
Solar leases and solar PPA are financial setups wherein the homeowner does not own solar energy installation on their roof, it is owned by the lease or PPA company. Let us look at the difference between the two to understand which is the best fit model for your personal needs. Read more…
Accelerated depreciation is a method of depreciation used to depreciate the assets in a manner that greater deductions are allowed in the first few years. Accelerated depreciation can reduce costs during a company’s start up year. By increasing the deductions taken during the first few years of business, you will Read more…
The Government of India has set an ambitious target of installation for Grid Connected Rooftop Solar Photovoltaic projects for 40 GW out of the total target of 175GW . PNB has availed a line of credit of $ 500 Million from Asian Development Bank for financing Rooftop Photovoltaic Solar Power Read more…
Solar financing normally comprises of two parts: an equity investment and project financing to cover the debt portion. Prior to any kind of investment, project evaluations identify the risks and methods of mitigating any risks. Where the project has inherent risks, the exposure to these riskswill be negotiated between the Read more…
As discussed in the previous article, investors typically need to evaluate the legalities, consent and technical aspects of a project before agreeing to invest. The due diligence conducted at the equity stage is mostly based on previously available technical information. Whereas, as for the case of project finance, due diligence Read more…