By Jim Spano
Installed solar capacity in the United States exceeded 10 GW for the third year in a row in 2018, and the pace of growth is expected to continue. The first quarter of 2019 was the strongest in the history of the U.S. solar market, according to a recent report from Solar Energy Industries Association (SEIA) and Wood Mackenzie Power & Renewables. Yet inefficient and costly project financing inhibits many solar developers from tapping into the market’s true potential.
With changes to the investment tax credit (ITC) looming, there is an opportunity to address some of the long-term financing challenges that have confronted the industry for many years. New debt financing vehicles, with terms that match the full operational life of solar projects will support continued industry growth as utilities are increasingly establishing renewable energy targets or supporting similar state goals.