Governor O’Malley of Maryland signed Senate Bill 0887 into law on Thursday, May 16^th 2013, effectively adding a new approval process and financing requirement for certain large PV solar systems. The Bill will require systems that are 2 MW or larger to file for approval to construct from the Public Service Commission (PSC), six months ahead of construction. This will apply to systems that are exempt from obtaining a Certificate of Public Convenience and Necessity (CPCN), the licensing requirement for the construction of a generating station in Maryland.

Solar PV systems that meet either of the following criteria do not have to file for a CPCN:

a)    Does not exceed 70 MW; Produces onsite electricity; At least 80% of total electricity produced is consumed on-site

b)    Does not exceed 25 MW; At least 20% of total electricity produced is consumed on-site

With the new law in place, systems that are 2 MW or larger, and do not meet either of these two criteria, must seek the newly required approval from the PSC. The system will have to file for approval six months prior to construction. A “deposit” of one percent of total installation costs is an application requirement, and will be held in escrow by the PSC. Once the project begins construction, the deposit will be refunded. Systems will have 18 months to begin construction following approval to construct.

If construction does not begin within 18 months, the deposit will be lost, and allocated to the Maryland Strategic Investment Fund. It seems that the system would then have to re-apply for PSC approval to construct, including submitting a new deposit, to be reconsidered. There may be exceptions to this rule, if an extension of the initial 18 months is granted by the PSC. The Bill states that “The Commission may grant the [extension] request based on factors the Commission considers compelling, including the occurrence of events outside the person’s control.” The Commission has not yet issued guidelines or comments on how or when it plans to implement the law, or whether the law will apply to existing projects that have not yet reached COD.

The new requirement will not add any additional overall cost to solar projects; however, it will shift a portion of the installation costs to an upfront payment in the form of the deposit. The below table shows the hypothetical deposit—one percent of installation costs—for a range of system sizes. Assumed installation costs are what Sol Systems is currently seeing in the Maryland solar market.

Sol Systems is continually monitoring the activity of the Maryland PSC and General Assembly for important updates relevant to solar financing and SREC markets. Please contact info@solsystemscompany.com with questions about the Maryland solar market.

 About Sol Systems 

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.

Sol Systems’ investor network is actively seeking California projects. Projects can be 10-20 MW in size and in need of tax equity, or mid-size commercial projects seeking take-out financing.

investors. The journal features solar finance statistics, trends, industry news, and SREC market information. We gather this information from our relationships and experience aggregating SRECs and financing commercial and utility scale solar projects.

We have included excerpts from our May Project Finance Journal below. If you have any questions about this information, wish to receive our monthly newsletter via email, or have a solar project in need of financing, please contact our team at finance@solsystemscompany.com.  We would love to hear from you.

Project Finance Statistics

Characteristics of “Hot Projects”

Capacity: 300 KW – 3.6 MW
Average Capacity: 1,423 kW
Competitive all-in (asking) prices* currently include:

• <500 kW: $3.00-3.25/Watt
• 500 kW – 2 MW: $2.57-$3.00/Watt
• >2 MW:$2.00-$2.62/Watt
  

*Price ranges do not include Hawaii projects where competitive costs are currently ~ $4.26/Watt

Average PPA rates:

• CA: 11.7 cents/ kwh with 0% escalator
• CT: 9.0 cents/ kwh with 2% escalator
• DE: 10.1 cents/ kwh with 2% escalator
• HI: 16 cents/ kwh with 2.5% escalator
• MA: 9.9 cents/ kwh with 2% escalator
• NC: 8.3 cents/ kwh with 0% escalator
• NM: 7.5 cents/ kwh with 1% escalator
• OH: 7.5 cents/ kwh with 0% escalator

Average Feed-in Tariff Rates

• NY: 22 cents/ kwh
• RI: 28.4 cents/ kwh

Trends and Observations

2013 Project Crunch Time

It is that time of year when investors can estimate their annual tax appetite, and developers and investors are fixated on the projects that can truly be closed by year’s end, especially with the anticipated expiration of bonus depreciation in 2013. Likewise, Sol Systems’ project finance team is focused on assisting our developer clients in strategically structuring and securing financing for their project portfolios, as well as helping investor clients execute on high-quality project opportunities. In the last month, we have secured term sheets for projects in California, Hawaii, Indiana, New Mexico, New York, Maryland, Massachusetts, and Rhode Island, and we are working diligently to bring 11 transactions, totaling 7.8 MW, to financial close. Please reach out to us if you are either looking for competitive financial solutions or strategic advice to maximize the value of your solar project portfolio, or if you are looking to buy projects.

Markets: What’s Hot

In the last month, we have seen noteworthy project activity in the following markets:

• California: Thanks to high electricity rates, a mature solar industry, and strong legislative support, California continues to be a national leader (Spread the word…the state now boasts more solar workers than actors). Our investors are actively seeking projects in the California market. We have seen some projects that do not even require local incentives.
• Delaware: Delaware’s Procurement Program results were announced, and winning SREC prices were lower than anticipated (average weighted price was below $100/SREC). These SREC prices will make it more important than ever for developers to hold down EPC costs and consider a variety of financing options.
• Hawaii: The Hawaii solar market has been picked over, but it is still thriving. The best new opportunities have unique challenges (most often host credit and interconnection), but our team has been able to work through these factors and is pushing several projects forward.
• Georgia: In general, project margins are thin for projects that won the Georgia Power incentive, but there is competition for these projects nonetheless. In one case, we saw an above-market premium offered for a Georgia project — of course, we are curious to see if the project will be successfully financed.
• New York: As NYSERDA’s deadline looms to demonstrate financing commitments, there has been lots of activity in New York. Projects in the southern part of the state seem to be the most promising.
• North Carolina: A large inventory of projects remains in North Carolina due to the shortage of state tax appetite, but this inventory is leading some to get more creative with financing. In particular, some are trying to utilize financing structures that increase the federal ITC basis and do not rely on immediate utilization of the state tax credit.

A Call for Cali Projects

Sol Systems is actively seeking two types of projects in California on behalf of our investor clients. Please contact us if you have California projects that meet the following criteria.

1. 10-20 MW project (or portfolio) seeking tax equity

• Size: We prefer a single 10-20 MW project, but will consider portfolios that are comprised of projects larger than 1 MW.
• Financing: We are seeking projects that exclusively require tax equity and for which the sponsor equity is already secured.
• Timing: Projects should be in late-stage development and will be placed in service in 2013 or early 2014.

2. Mid-size commercial projects seeking take-out financing

• Size: Each project should be at least 100 kW, but preferably larger.
• Financing: We are seeking projects that require take-out financing. Hosts do not need to be “investment grade” but they will need to provide 3 years of audited financials.
• Timing: Projects would ideally be in placed in service in 2013.

Please reach out to us at 888-235-1538 x2 or finance@solsystemscompany.com if you have projects that meet these criteria.
SREC Roundup

In May, Sol Systems has once again significantly increased pricing for 3 and 5-year fixed price strips in Washington, D.C. Pricing in all the other states remains unchanged this month.

The Sol Systems team offers 3 SREC monetization options: Sol Annuity, Sol Upfront, and Sol Brokerage. Sol Annuity and Sol Upfront options depend on system size and location, while Sol Brokerage is offered to 12 states and can be offered to developers with projects of all sizes.

To learn about our SREC services, please contact us at info@solsystemscompany.com or 888-235-1538 x 1.

Through our Developer Advisory Services, Sol Systems works alongside its developer partners to strengthen applications for RFP’s and competitive bidding programs.

More than a dozen states and municipalities across the Unites States have turned to competitive bidding programs or feed-in tariff (FiT) programs to scale solar investments.  For example, Rhode Island and the LA Department of Water and Power (LADWP) are both currently offering attractive FiT programs for qualifying solar projects. Along with tax credits and tax equity financing, solar programs that offer long-term contracts can be important in financing small-scale commercial solar energy projects. Private and public entities utilize RFPs to attract the most qualified developers to fulfill renewable energy allocations, and these are increasing becoming structured as competitive bidding processes rather than simply lottery programs. Several factors can determine which developers win RFPs, including overall strength of application and competitive pricing.

Through our Developer Advisory Services, Sol Systems works alongside its developer partners to strengthen applications for competitive bidding programs. Strong applications exhibit specific characteristics such as site control with the project host, a completed feasibility study, thorough project design details, a clear plan for the financing of the system, and demonstrated experience in completing previous solar projects.  Our services identify financial and technical risks for solar projects, and our work with investors provides our team with a heightened understanding of project financeability. Most recently, Sol Systems worked with developers entering National Grid’s Rhode Island’s feed-in tariff program, which aims to add 40 MW of renewable energy capacity, 10 MW of which will be secured this year.

When entering a competitive bidding program, having a strong financial partner increases developers’ chances of succeeding if the program is not solely based on price. Pricing is important as the utility, or other entity running the program, will prefer to pay the least amount possible for the electricity and Renewable Energy Credits (RECs). However, utilities are also realizing that they must also select projects that will actually get built.  Furthermore, projects with financing already put in place are usually able to bid in with more clarity on pricing. Sol Systems has worked with developers across several states to provide a variety of financing solutions for solar projects within the 100 kW – 10 MW size range. Our geographic reach and knowledge of federal and state level incentives allows us to provide developers with a wide array of third-party financing options for solar projects. As a financing partner, we are capable of sourcing the most challenging portions of the capital stack such as tax equity, project debt, and SRECs.

Developers with quality projects who are looking to strengthen their competitive bid applications should reach out to Sol Systems for assistance. Sol Systems also works with developers with projects throughout the United States to help them secure financing. Please contact our team at finance@solsystemscompany.com or (888) 235-1538 x2. 

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.

Governor Patrick announces new goal of 1,600 MW of solar energy installations in Massachusetts by 2020.

With nearly 100 MW of solar power installed in 2012 alone, this accomplishment propelled Massachusetts to rank sixth last year in total capacity added, representing a jump up from their 12th place ranking in years 2010 and 2011, according to SEIA’s US Solar Market Insight Report. To help provide perspective on what this accomplishment means in Massachusetts, the 250 MW of solar power already installed is enough to power more than 37,000 homes for a year and is the equivalent of eliminating greenhouse gas emissions from nearly 26,000 cars a year. The new goal would generate enough power for an additional 200,000 homes for a year, and eliminate emissions from nearly 140,000 more cars.

With his statement, Governor Patrick confirms the commitment of Massachusetts to an effective and innovative solar market. This announcement comes in the midst of ongoing discussions revolving the 400 MW cap on the current solar carve-out program and the question of whether to expand the program or create a separate and distinct SREC-II program. As Governor Patrick noted in his speech, the proper solution will need to “ensure certainty for the financing world, affordability for customers, and stability for the market.”

Sol Systems will continue to track the developments of the post-400 MW policy discussions through our blog. Please contact info@solsystemscompany.com with any questions about the Massachusetts SREC market.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.

The Virginia legislature has failed to modernize and restructure the state’s current RPS. In 2012, the state voted to remove “adders” for utilities meeting their renewable portfolio standards that incentivized the voluntary targets. In reality, the adders did little to encourage new investment in renewables; however, the legislature has made no progress on developing a mandatory and strict RPS program. Now, utilities are only encouraged to participate in the program, and face no punishment for not doing so. Additionally, up to 20% of the standards for investor-owned utilities (IOUs) can be met through “certificated research and development activity expenses”, not solely new renewable energy, a significant loophole. Ideally, Virginia would have developed a more rigorous RPS program in its last legislative session to replace its voluntary targets. Additionally, IOU’s are still allowed to purchase renewable energy credits (RECs) from aging, out of state renewable generation facilities. This policy does not incentivize new development of renewable energy. And because the utilities are allowed to pass on costs of meeting the renewable standards to customers, consumers are paying higher rates while little development is taking place.

In February, State Senator William Seitz, the current chair of the Public Utilities Committee in Ohio, introduced a bill that would review the merits of the state’s RPS program, calling into question costs placed on consumers and effects on the Ohio job market. The mandate has reached committee, and testimonies are being taken on the merits of the RPS. The current renewable energy portion of S.B. 221, an overarching law mainly outlining acceptable utility rates, contains a 25% requirement for all investor owned utilities, of which 12.5% must be filled by renewable energies and the other portion can be any “advanced” energy, namely certain types of coal and nuclear. The law mandates that utilities help consumers to decrease certain types of consumption by 22%by 2025 by increasing efficiency. The law also contains a 3% percent cap on the increase in electric rates charged to consumers as a result of renewable efforts by the IOUs. If costs exceed this limit, the renewable requirement is no longer imposed. Seitz and others have interpreted this portion of the bill, however, to indicate that renewable energy production costs must not exceed the costs for fossil fuel production by more than 3%. The current program has succeeded in fostering renewable energy development, as Sol Systems has experienced first-hand through the state’s SREC market. Ohio has experienced significant success under its current RPS program while limiting costs to ratepayers and it is prudent that Ohio maintains its current incentive structures.

The Kansas state legislature recently voted to table House Bill 2241, which would have dismantled the RPS program. The Committee on Energy and Environment of the Kansas House also rejected two amendments to the bill…. One of these would have frozen the RPS requirement at 15%, another would have brought the 2020 goal down from 20% to 17.5%. While no efforts to repeal the RPS in Kansas have passed, efforts to undermine renewables incentives continue. State Senator Grothman of Wisconsin has proposed similar legislation to that in Kansas. His revisal of Wisconsin’s RPS would freeze the percent of electricity sold by utilities that is derived from renewable energy at current levels. This proposal solely mandates that utilities do not go below their current levels, requiring no further investment in renewable energies. These measures would undermine the renewable energy economy in both states and halt progress towards an independent, sustainable energy future.

Five more states have introduced bills based off of legislation designed by conservative activist group ALEC that aim to water-down the RPS programs. They are all similarly aimed at allowing hydropower to consist of a larger portion of the renewable energy requirements necessitated by the RPS of each state, to the detriment of other types of renewable energies.

In Missouri, legislation has been approved intending to broaden the scope of what is classified as “renewable energy”. Under H.B. 44, “renewable energy” would include large hydropower plants, removing the 10 MW limit on hydropower plants’ nameplate capacity for eligibility as a renewable energy. Removing the megawatt cap would only serve to “water down” the state’s RPS, decreasing investment in  distributed renewable energies as utilities choose to purchase from hydropower facilities. House Bill 44 has passed the Senate and House on April 5^th, 2013, and is awaiting the governor’s signature.

Senator Jon Kean of Montana introduced an almost identical bill. It did not qualify existing large hydropower stations – only upgraded systems and those built since 2009 with a capacity below 15 MW. Apart from this stipulation, the two bills appear to be the same, removing the current cap of 10MW for hydropower plants. Montana has the least extensive wind program in the Northwest region, and continuing or expanding, not diminishing, its current RPS policy could unlock its potential in wind and other renewable technologies. The bill, S.B. 31, passed the state legislature, but was vetoed by the governor, Steve Bullock. The governor praised the success of the state’s current program in his justification for vetoing the bill.

Governor LePage of Maine has introduced a very similar bill. This update to the state’s RPS would increase the cap on all qualified renewable energies from 100MW to 400MW. This would allow utilities to meet their requirements through large-scale Canadian hydro projects from Quebec, Nova Scotia and New Brunswick. Currently, the Canadian suppliers are unwilling to provide energy to Maine because their projects are larger than the 100MW cap installed by the program. One lawyer has pointed out here that those Canadian suppliers do in fact have several projects less than 100 MW that could be used by Maine distributors. Maine has relatively high electricity costs and the governor has made it one of his goals to find cheaper sources of clean electricity consumers for his constituency. Producers of other major renewables fear the new legislation would disrupt the progress that they have made under the program.

Sen. Doug Erickson has introduced yet another similar bill to the Washington State Senate. It would recognize all forms of hydroelectricity as a form of renewable energy for the purposes of Washington’s Renewable Energy Standard. The bill is in its first reading in the Senate Energy, Environment and Telecommunications committee as of this writing.

Oregon’s Senate Bill 121, introduced in January and still in committee, would minimize restrictions on the type of hydropower that would qualify for Oregon’s RPS. Oregon currently allows hydroelectricity to qualify if the plant was built after 1995. The proposed legislation would do away with this stipulation, weakening the market for renewable energy credits (RECs) produced through the RPS. It was referred to committee in January, and has thus far not received a vote.

Although it is crucial to continually review RPS programs in order to assure efficient development of renewable energy at minimal cost, diminishing or overhauling completely the programs in states where they have had acknowledged success is likely unnecessary. These policies create job growth in the renewable sector while keeping costs low for consumers and becoming less dependent on fossil fuels. Sol Systems believes in the merits of RPS programs that aid nascent renewable energy industries, and will continue to monitor the proceedings in state legislatures across the nation.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals. For more information, please visit www.solsystemscompany.com.

This year, the Delaware Public Service Commission approved a new structure for the program which resulted in a competitive bid process for all tiers. This differs from the structure of the 2012 Pilot Program, which included an administratively set price for projects under 250 kW and a competitive bid process for projects above that size. The set price was an attractive, guaranteed price of $260/SREC or $240/SREC for the first 10 years of the contract.

After the 2012 Pilot Program concluded, a Taskforce convened to analyze the results of this program and subsequently released a report to determine the structure for the 2013 Program. This report and analysis indicated a potential concern over the cost to the ratepayer if the participating utility, Delmarva Power, continued to enter into contracts at such high prices in subsequent years. Consequently, a competitive bid process was issued for the 2013 procurement to create more competitive and cost-effective pricing.

The competitive bidding process significantly brought down the prices of Delaware SRECs entering into the program. Specifically, projects under 200 kW, who would have received $260 or $240/SREC in the 2012 program, saw prices fall to an average contracted rate of $46.48/SREC for new systems (with final interconnection approval after April 2, 2012) and $34.59/SREC for existing systems (with final interconnection approval before April 2, 2012), only about $15 and $3 more than current spot market prices, respectively. Pricing for projects above 200 kW was reduced by as much as $114/SREC for existing projects and as much as $103/SREC for new system.

2013 Delaware Procurement Program Results

2012 Delaware Procurement Program Results

Sol Systems will continue to track any further developments in regards to this Program and will inform our installer partners and customers with further information as necessary. Sol Systems currently offers our Sol Brokerage SREC solution for photovoltaic systems located in Delaware. Please email info@solsystemscompany.com for more information.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.

2013 Solar Industry Trends, Part 2: A Look at Geographical Markets  

Trends in the geography of solar development are determined by three primary drivers: solar insolation (the quantity of sunlight during the year), local electricity rates (the higher the rate the better) and local regulatory and incentive programs. Good projects are found where bountiful solar resources, costly electricity rates, and generous incentive programs overlap. Nevertheless, even if the first two factors are lacking, strong state and local incentive programs and regulations can singlehandedly determine favorable solar markets for financeable projects. In 2013, a number of new state and local programs, including programs in New York, Indiana, Georgia, Connecticut and Washington D.C., in combination with established markets, like California and Massachusetts, will drive solar development trends nationwide.

Indianapolis

Indianapolis provides a great example of how local incentive and regulatory programs can create significant solar development and investment opportunity. The Indiana Utility Regulatory Commission is set to approve the development of more than 65MW of solar projects thanks to a compelling local feed-in tariff (FIT) program, with an estimated value of between $180 million and $200 million in capital expenditures….

A power purchase agreement (PPA) between solar project and the local utility, Indianapolis Power and Light (IPL) will incentivize these projects. IPL’s PPAs are issued under the utility’s FIT program, an effort by IPL to meet its compliance goals under the state’s clean energy portfolio standard.

A PPA provides a solar project with a predetermined price, with or without an escalator, for the electricity the facility produces over a fixed period. This equates to long-term electricity cash flows for the project and long-term financeable agreements to project developers. IPL, in this case, is a BBB- rated entity and the provisions of the PPA, with a purchase price of $0.20 per kilowatt-hour and a term of 15 years, are very attractive.

Sol Systems is working with a number of solar developers in this program, and the project economics are such that they can support attractive returns for both the sponsor and the tax credit investor. We think this market will peak in the second and third quarters of 2013, and wind down quickly by the end of the year.

New York

New York is a good market for the development of solar projects because the New York State Energy and Research Development Authority (NYSERDA) recently expanded a production-based rebate program that provides solar projects with incentive payments for four years. The result is a compelling and fast-moving investment opportunity. The NYSERDA program has been allocated more than $100 million in funding for rebates designed to spur the development of commercial solar projects in 2013. This should result in a total investment of more than $300 million in solar project development. NYSERDA will issue the rebates on a competitive basis in three rounds. The first of the three rounds of solicitation periods closed in December, and Sol Systems is working with a number of commercial projects (500KW to 2MW) looking to raise tax equity.

For these NYSERDA projects, the rebate accounts for 30 to 40 percent of project costs, and when combined with the federal investment tax credit (ITC), the projects provide compelling returns. An important note for tax credit investors is that NYSERDA pays the rebate during the first three years. After that, projects rely on what can be relatively thin PPA revenue. Finally, the projects must be built within eight months of receipt of the awards letter to qualify for the NYSERDA rebate. We anticipate this time crunch will give the investor community advantage, which should be a benefit.

Georgia

While not a traditionally robust solar market, many in the solar industry are tracking Georgia in 2013 and beyond. The local utility giant, Georgia Power, is finalizing its Advanced Solar Initiative (GPASI) to provide PPAs to solar project developers in the state. We anticipate Georgia Power to issue PPAs under the program in the first and second quarter of 2013.

The GPASI calls for more than 200MW of solar projects, amounting to an estimated $600 million in total solar project capital expenditures. Until recently, the state’s restrictive limitations on independent power producers, which effectively prohibited a third-party ownership model from flourishing, have impaired the solar industry. Despite the politics, these recent developments are an example of how the industry continues to push fundamental shifts in our country’s electricity production and consumption, and speaks to the technology’s ability to integrate with big utility companies.

Connecticut

In 2012, Connecticut initiated a zero or low emission REC (ZREC) program. The ZREC program requires Connecticut’s two regulated utility programs, Connecticut Light and Power (CL&P) and United Illuminating Company (UI), to administer a solar electricity procurement program. The program provides solar developers the opportunity to submit a request to the utility for a 15-year contract to sell the environmental attributes of the solar electricity for a premium. For contracts awarded in 2012, Sol Systems has reviewed awards in excess of $0.10 per kilowatt-hour. The credit quality of the utility companies, the premium paid for the electricity, and the length of the contract provide financeable cash flows for projects in Connecticut. The program will be in effect until 2022, and will ramp up over 2013 and the coming years.

Washington, D.C.

Washington, D.C. has one of the strongest solar incentive programs in the country. In August 2011, the DC Council amended the city’s renewable portfolio standard to strengthen the solar renewable energy credit market. Prior to the council’s action, the area’s solar market was on the verge of collapse. Today, the city provides economic support for solar projects that make it one of the most lucrative market’s in the country. The limiting nutrient to success in the area, however, is the lack of space to build large projects. Sol Systems has collaborated with a number of local solar developers – like Skyline Innovations – that are employing innovative technological solutions to maximize roof space. In sum, Washington, D.C. is a competitive market for developers working to put a project together, but a very financeable market for long-term owners.

Conventional Markets, Anew

In addition to these relatively new markets, established markets will continue to see growth in 2013. In Massachusetts, for example, the solar market will continue to expand at a record clip. The industry awaits a pending announcement from the Department of Energy and Resources (DOER) to stabilize and strengthen the state’s solar renewable energy credit (SREC) program. Massachusetts will also gain attention when it holds its SREC Clearinghouse Auction in July; the auction will test the state’s proposed “soft floor” for the SREC market.

On the other side of the country, California will continue to lead in solar development as utilities begin releasing PPAs under their micro FIT programs, which support the development of small utility-scale solar projects (instead of more traditional multi-megawatt projects) throughout the state.

Conclusion

The landscape of the solar industry will continue to evolve in 2013. New markets like Georgia are coming online, providing robust opportunities for tax driven investors. Historical markets like California will also provide financeable projects for the investor that knows where to find them. Based on the strength of these and other markets, initial estimates indicate that development in the first quarter of this year will provide record-setting growth for the solar industry and many strong investment opportunities for the well-informed financier.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.

The Sunshine Backed Bonds Conference will be held May 3rd, 2013

On May 3^rd, the Information Management Network will be hosting its first annual Sunshine Backed Bonds conference in New York. The event, aimed at introducing investors to solar as a viable asset class, will be located at the Union League Club in lower Manhattan. Sol Systems’ co-founders, George Ashton and Yuri Horwitz, will both be in attendance. George will be participating in a panel discussion entitled “Exploring the Role of Securitization in Renewable Energy Finance.” The conference will largely focus on large-scale financing opportunities available through securities, allowing typical developers to network with ABS investors seeking alternative financing ventures.

Sol Systems, a renewable energy financial services firm, works with investors interested in the renewable energy asset class to ensure that they receive the maximum return on their investment from investing in solar. Sol Systems has  experience in several renewable energy investment vehicles, including tax equity and take-out financing

Installers, developers, and renewable energy investors interested in meeting with George or Yuri at the conference should contact us at info@solmarket.com.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals. For more information, please visit www.solsystemscompany.com.

Sol Systems will provide Dow Solar customers with SREC financing solutions in Washington D.C., Maryland, and Massachusetts.

“We are pleased to offer this additional service for our POWERHOUSE customers,” said Yochai Gafni, Dow Solar’s Market Development Director. “POWERHOUSE is a smart home investment, but managing all of the available incentives can be cumbersome for homeowners. The alliance with Sol Systems will enable our POWERHOUSE Authorized Dealers to act as a one-stop shop for solar roofing and SREC management, which will differentiate them in their markets.”

Sol Systems will provide Dow Solar customers in Maryland, Massachusetts, and Washington, D.C. with the opportunity to lock into SREC contracts.  Sol Systems eliminates the administrative burden of monetizing SRECs for its customers and partners by providing access to its proprietary SREC management tool, registering the systems with the necessary state and regulatory bodies, tracking meter readings, and handling all SREC customer service inquiries.

POWERHOUSE Solar Shingles install like traditional roofing shingles but provide solar electricity to power homes. POWERHOUSE is currently available in select U.S. markets through Dow’s Authorized builders and roofing contractors. POWERHOUSE Solar Shingles have won several awards for their innovative design, including recognition as one of TIME magazine’s 50 best inventions.

“Sol Systems is proud to be working with Dow Solar,” said Sol Systems’ CFO, George Ashton. “The combination of Dow’s innovative product with our SREC monetization execution allows customers to make a smart and easy investment in solar.”

Sol Systems is the largest SREC aggregator in the nation and offers a suite of SREC financing solutions to customers in 13 states throughout the Midwest and Mid-Atlantic. In addition to SREC services, Sol Systems provides project financing and structuring expertise to solar developers and renewable energy investors.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals. For more information, please visit http://www.solsystemscompany.com/. 

About DOW POWERHOUSE™

The DOW POWERHOUSE™ Solar Shingle is a first-of-its kind solar roofing product, developed to combine the benefits of solar technology with the durability and performance of traditional roofing materials. It is designed to install, look and function in a way that has never been done before. POWERHOUSE is reinventing the roof with a new generation of homeowners looking for a smart, renewable way to power their homes without compromising the home’s aesthetics. Building Integrated Photovoltaic (BIPV) products from Dow Solar are one of the many innovations from Dow establishing the Company on the forefront of alternative energy solutions and expanding Dow’s commitment to using chemistry to solve the world’s energy challenges. The DOW POWERHOUSE™ Solar Shingle was recently honored as a recipient of a 2012 Breakthrough Award by POPULAR MECHANICS, and a 2012 Gold Edison Award for Best New Product. In 2009 it was named as one of the Best Inventions by Time Magazine. More information about DOW POWERHOUSE can be found at www.DOWPOWERHOUSE.com. Homeowners and building professionals can also follow DOW POWERHOUSE on Facebook, Twitter, Pinterest, or via YouTube.

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual sales of approximately $57 billion and employed approximately 54,000 people worldwide. The Company’s more than 5,000 products are manufactured at 188 sites in 36 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com. 

The Vermont Public Service Board will take project proposals until May 1st, 2013.

The Public Service Board in its deliberations on the changes found a market-mechanism approach to be legal according to federal standards, and subsequently established a request for proposal (RFP) system in order to award contracts. Developers will submit a bid for the electricity rate they desire for their project, with a maximum rate determined by the avoided-cost structure for each energy source. As previously mentioned, in Vermont this ceiling has dropped from $.271/kWh to $.257/kWh. The new structure benefits larger projects and well-established developers, and will result in tighter margins and increased competition to the Vermont market. The size limit for individual systems is 2.2MW AC, and the entire 2013 SPEED program has a cap of 5MW. If more than 5MW of projects apply to the standard offer, the cumulative program will still pay for the excess energy, rolling over the capacity into the next year. Developers have until May 1^st to submit their proposals for the rest of the 2013 program, which has about 4.5 Megawatts left to be filled. The request for proposal is outlined here.

Sol Systems actively evaluates and finances solar projects in Vermont and has seen first-hand the success of the Vermont SPEED program. Sol Systems will continue tracking these changes as they develop. To speak to a member of the Sol Systems team regarding project opportunities in Vermont or elsewhere, please contact info@solmarket.com or 888-235-1538 ext. 2.

About Sol Systems

Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.

For more information, please visit www.solsystemscompany.com.