Q: I wish to finance a number of commercial solar installations at client premises. I will own them and make revenue from a service agreement with the clients over a 10 year period. What are my best options for financing?
A: In order to raise finance / gearing from commercial banks for your anticipated portfolio of PPAs you will own there is a critical mass required, akin to bank lending to commercial businesses. This minimum level would be in the ballpark of at least the 5 million mark.
Other options to consider include:
1. Selling the projects at development phase to a PPA fund and charging either an upfront or ongoing fee to the fund, or
2. Funding each PPA on your balance sheet then sell down to a PPA fund progressively. This option will mean you need to spend money on developing up contracts and processes on credit decisioning, retailer exemption licence etc.
If you would like to discuss these more, please reach out.