How We Work
We finance systems that most other developers find too small or too complicated to bother with, and this is a large and growing share of the solar project market. These projects tend to see the same average investment returns as larger projects that are more competitive. We also finance larger-scale systems for the right clients, and develop all of our projects with a personal, hands-on approach that minimizes hassle for all parties.
Our diverse in-house financing support includes a mix of loans and investment which is unique for each solar project. Loans are capitalized by impact capital funds and traditional banks that are getting much more involved in the industry as the risk is decreasing. Every solar project built requires the client (the energy buyer) to sign a Power Purchase Agreement which states the energy rate that the client will be charged every month for a term of 20-30 years. This makes for guaranteed, consistent cash flow from the project to pay back loans and investors.
A majority of our investors are long-term equity owners, putting the capital in that is needed to build a solar project and then repaid from monthly project cash flows. Our investment arm, Solaris Investment Group, currently invests in all of the projects we develop. However, since each solar project is a separate legal entity, investors can capitalize just one project if desired. Equity owners could hold a project for a couple years and then sell it, or could own it for the life of the 20-30 year Power Purchase Agreement.
There are also many investors who can lower their taxes significantly by taking advantage of tax credits related to developing solar. Investors only interested in short-term investments can contribute capital to develop the project and then receive full payback by project completion. Alternatively, large institutional investors want to own the asset long-term for the cash flow payments, only investing after completion.