Finance

Solar power requires steep upfront costs, which are often a deterrent for residents, businesses or utilities, despite the recognized long term benefits of distributed solar energy. To encourage the rapid deployment of solar energy, there is a blossoming need for compelling and well-understood financing models. New and innovative financing tools that make solar more affordable are critical to the industry's success.

Committee Goal: Develop standards and best practices of financing related contracts, resulting in 25% reduction in transaction costs.

Projects

Developed the industry’s first standardized Purchase Power Agreement (PPA) contract templates, reducing finance transaction costs and shortening contract negotiations.More info

Create training and educational tools for PPA and Lease contract templates and other Finance Committee deliverables

Develop instructional materials in how to how to secure DOE Grants from the loan guarantee program

Conduct an analysis of community based financing with a focus on the residential market

Document best practices in support of construction financing

Outline the impact of carbon legislation

Solartech Participants: SolarTech member companies including PV system developers, financing agencies and legal firms are collaborating to develop innovative financial models and market mechanisms, creating best practices and streamlining processes for solar financing.