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Posts Tagged ‘Solar finance’

Why Businesses are Taking Advantage of Solar Power Purchase Agreements

Friday, January 21st, 2011

A Solar Power Purchase Agreement (PPA) is a legal contract where a solar project developer installs and operates a system for a business owner, homeowner, or tenant (the “host”) who in turn agrees to buy the solar generated electricity for a fixed period, usually 10 to 20 years. The host typically purchases the solar power at a fixed rate equal to or less than their normal utility rate and does not pay the upfront capital costs of the installation, making PPAs a very attractive economic option.

Developers like the model because the PPA contract ensures that the developer will be able to sell the solar electricity for a fixed period of time at a pre-determined rate. The PPA contract also removes negotiation and transmission costs that could be associated with solar projects that do not have a guaranteed energy buyer.

Businesses benefit from the federal and state incentives in place for owning a solar system. Specifically, Solar PPAs in the United States rely on the federal solar investment tax credit, which was extended for eight years under the Emergency Economic Stabilization act of 2008 and then amended with the passage of the American Recovery and Reinvestment Act of 2009 so that the solar investment tax credit can now be combined with tax exempt financing. This investment tax credit covers 30% of the expenditures on a solar system. Several state rebate programs also reduce the capital necessary for PPAs by providing grants corresponding to the size of the solar system.

The host business that is buying the solar generated electricity does not receive any of these tax credits or rebates directly, rather, the developer or company that finances and subsequently owns the system receives these benefits. However, the developer passes these benefits on to the host in the form of lower fixed rates for their electricity.

Because the developer fully maximizes all the incentives associated with a solar energy system, in some situations a PPA can be a better deal than ownership of a system. For example, non-profits cannot receive tax credits, implying that a PPA would be the better financial decision since the developer could access the tax credits and consequently provide solar electricity at a reduced rate to the non-profit. Furthermore, a solar developer can raise funds for a project (or portfolio of projects) through tax equity investors.

Similarly, businesses and developers engaging in a Solar PPA can take advantage of Solar Renewable Energy Credits (SRECs). An SREC is a tradable credit that represents the clean energy benefits of electricity generated from a solar electric system. Each time the electric system generates 1000 kWh, a SREC is issued that can be sold or traded separately from the power. Therefore, the legal owner of the system can sell their rights to SRECs to utility companies that need SRECs to comply with state Renewable Portfolio Standards. This represents another substantial method to offset the cost of the system and allow businesses to reduce their net costs and ultimately the PPA rate. As state rebate programs diminish, SREC values will become more important for financing solar.

As PPAs and new solar financing tools become more prevalent, it is important to understand the difference between a PPA and a lease. A solar lease is another common financing tool where a solar company builds a solar energy system on a host’s property and then the host pays a lease payment for the benefits of the system’s electricity production. This is different from a PPA where the host pays directly for the solar power. Many companies that began exclusively in solar leasing are now offering the PPA model to customers as well. Typically, nuances in state laws or consumer preference determine whether a developer will offer a PPA or lease. Solar developers who offer solar PPAs have encountered a large number of interested customers. For example, Wal-Mart, Safeway, and Macy’s all use solar PPAs, and some estimates say that in 2008 PPAs represented over 60% of California’s non-residential solar market.

In short, PPAs allow businesses to take advantage of all sorts of solar incentives like SREC values, federal, and state incentives – all without any upfront capital. As large facility owners and tenants continue to demand solar without high upfront costs, PPAs will become more and more popular.

Tags: Affordable solar, Solar finance, Solar incentives, SRECs, State Renewable Energy Incentive Programs
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An Outlook On Solar in 2011

Monday, January 17th, 2011

Competition is stiff in the solar manufacturing industry, with companies like Evergreen announcing their departure from the United States to China in order to reduce costs. Enormous global module supply has come online in the last two years to help fuel the rapid build-out in Europe, China and elsewhere, resulting in dramatic declines in solar module pricing. Some, like Gleacher and Company, are modeling module prices at around $1.30/watt right now. Others are actually predicting wholesale module costs at $1.10 in the next few weeks.

The result is a strange dichotomy of a manufacturing industry undergoing rapid growth and simultaneously undergoing a stressful reallocation of resources and a fairly pessimistic outlook on Wall Street. The WilderHill Clean Energy Index, which includes solar and other alternative-energy stocks, fell 5.3 percent last year, compared with a 12.8 percent rise in the Standard & Poor’s 500 index. Companies like SunPower, Yingli, JA Solar, Trina, Canadian Solar, MEMC, Suntech and others all produced significant negative returns, some upward of negative 20 percent.

This fall in module prices, and the corresponding difficulties for module manufacturers, will likely continue through 2011 as the world’s top solar market, Germany, further cuts its solar subsidies and a growing supply of photovoltaic modules outstrips demand, putting pressure on prices and producers’ profits. As others have noted, a weak euro will compound the problem for Chinese and U.S. manufacturers. Last year, Germany, Spain, France, Italy and Czech Republic all cut back their solar subsidies. Further cuts are expected in Germany and France in the first half of 2011 and in Italy in the second half. Those three markets account for around 70 percent of the global market, according to Bank of America Merrill Lynch. Next year may be the first year in which more solar is built in the United States than in Germany.

For the solar installer and developer community this is presumably welcome news (ignoring the risks, of course, that similar reductions in incentives may take place here). As solar module costs decline, so are total system costs since modules compose a significant portion of the overall costs of a solar system.

However, cost reductions do not uniformly impact the solar community. Because of economies of scale, module costs account for a much larger portion of commercial-sized solar system’s costs than residential. The impact is still more powerful with regard to utility sized projects. As a result, falling module costs disproportionately benefit larger systems, as illustrated the figure below (care of SEIA).

Not only are commercial and utility costs already significantly lower than residential costs, they are also falling more rapidly. Indeed, utility projects are falling in price at three times the rate that residential projects are. This is an interesting window into the solar industry in the United States, which is that solar systems will undoubtedly get BIGGER.

To compound this trend, as states drastically reduce or altogether cut their rebate and grant programs for residential and small commercial systems, the economics that once favored smaller projects are starting to disappear. States like New Jersey, California, Maryland, Pennsylvania, Ohio and many others have all gutted their tax-funded rebate or grant programs. American Recovery and Reinvestment monies that flowed through the states in much of 2009 and 2010 are nearing their ends. Although module costs are falling significantly, they are not falling (nor could they) by two to three dollars a watt , which was often the size of grant and rebate monies. The result is a further shift upward in size. In Massachusetts, for example, given the emphasis on a solar renewable energy credit (SREC) market, many developers are starting to focus exclusively on commercial and utility scale projects.

For residential focused installers and developers, this may be an opportunity or a challenge. Presumably, those firms that can secure large economies of scale in purchasing power will better weather these changes than those that cannot. Additionally, because size matters, the industry may see consolidation. Hopefully, it will also see aggregation or collaborative models, where residential and small commercial installers work together to secure better financing opportunities and engineer more sophisticated acquisition models. This, of course, is a primary focus of financing firms like Sol Systems. Additionally, power purchase agreements and lease agreements may gain prominence if effective costs rise for residential customers in the absence of rebates.

For commercial and utility developers, a move upward in size means a necessary move towards more complex financing instruments. It becomes a bit more difficult to make a pure equity play on a multimegawatt project – a blended debt/tax equity/first loss equity product is typically required to reduce risks and bring down the costs of capital. To see this approach succeed, the capital markets will have to open further to solar projects. A lack of access to debt markets and tax equity was a big part of what has slowed the growth in wind and large-scale solar in the last few years. So this may be a challenge. On the other hand, Chinese banks continue to push into the US market to debt finance multi-megawatt portfolios, so it may not only be Chinese modules the US industry is using, it may also be Chinese money.

In sum, as the industry grows, there will be a continued movement towards larger projects. To succeed, players will have to become more sophisticated. This will favor players in the residential space who are able to collaboratively or individually leverage economies of scale and acquisition models and players in the commercial and utility space who are able to better secure complex financing instruments.

Tags: China, Chinese support for solar, future of solar, module costs, Residential solar, solar, Solar finance, Solar incentives, solar industry, solar renewable energy credits, SREC, SRECs, State Renewable Energy Incentive Programs
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Sol Systems Reduces Costs of Going Solar in Massachusetts with Upfront SREC Financing and 0% Brokerage for SRECs

Wednesday, January 12th, 2011

Washington, DC: January 12, 2011

Sol Systems, the nation’s largest solar renewable energy credit (SREC) aggregator, is offering a new SREC option, “Sol Upfront,” for solar energy system owners in Massachusetts, and will waive commercial project brokerage fees for its spot market option “Sol Brokerage.”

The upfront payment option allows homeowners and businesses who install solar energy systems to pre-sell 10 years of SRECs in exchange for a lump-sum payment, while the brokerage option allows commercial-sized system owners to seek the highest spot prices for their SRECs with no fees. Both options will improve the economics of going solar for Massachusetts solar project owners.

“Because the Massachusetts’ SREC market is new, and there is an element of risk compared to some other well-established SREC markets, we have created ways for our customers to address this risk in the way that best fits their financial profile,” said Sol Systems CEO, Yuri Horwitz. “Our Sol Brokerage option allows customers to take advantage of the risk with the highest spot prices available, while our Sol Upfront option removes SREC market risk and regulatory risk entirely.”

Sol Systems also offers 3 and 5 year fixed price “Sol Annuity” contracts to Massachusetts customers. Under the annuity arrangement, customers receive a fixed price for each SREC generated over the agreement term and are paid quarterly. The 5 year term pays $275/SREC and the 3 year term pays a guaranteed rate of $400/SREC. Both are backed by long-term utility contracts.

Sol Annuity, Sol Upfront, and Sol Brokerage are available to residential and commercial system owners. However, the Sol Brokerage fees will only be waived for systems that are larger than 20 kilowatts in size.

About Sol Systems

Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners across 13 states, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit www.solsystemscompany.com.

Contact

Sudha Gollapudi
Director of Strategic Partnerships
888-235-1538 x2
info@solsystemscompany.com

Tags: MA SREC, Massachusetts solar, Massachusetts Solar Carve Out, Solar finance, solar financing
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Governor O’Malley Appoints Leading Educator, Solar Innovator to Board of Maryland Clean Energy Center

Thursday, January 6th, 2011

January 6, 2011 – ANNAPOLIS, MD

Gov. Martin O’Malley has appointed a prominent academic researcher and a solar industry finance expert to fill two vacancies on the Board of Directors of the Maryland Clean Energy Center.

“We are privileged to have two such high-caliber and forceful clean energy advocates join us as we move into our second year of operation”

Eric Wachsman, PhD, Director of the University of Maryland’s Energy Research Center, will serve through June 2015. George Ashton, co-Founder and Chief Financial Officer of Sol Systems, LLC, a national leader in aggregating solar renewable energy credits, is fulfilling a term that runs through September 2012.

Wachsman and Ashton join existing members of the Center’s Board of Directors who oversee its mission of helping consumers, supporting businesses and advising lawmakers in Maryland as the state scales up its clean energy industries and energy efficiency initiatives. Other Board members include Jeremy Butz, Carol Collins, Ken Connolly, Jeff Eckel – who serves as the current Board Chairman – and Malcolm Woolf, Director of the Maryland Energy Administration.

“I am so proud to announce the appointment of two very talented individuals to the Board of the Maryland Clean Energy Center,” said Governor O’Malley. “As Maryland continues to emerge as a national leader in clean energy, their leadership will help us move toward a better and more sustainable future for our children. I’d like to thank them for their willingness to step up and serve the people of our State as we work to find innovative ways to reach our clean energy goals in the toughest of times.”

“We are privileged to have two such high-caliber and forceful clean energy advocates join us as we move into our second year of operation,” said I. Katherine Magruder, Executive Director of the Maryland Clean Energy Center. “They will help facilitate the adoption and generation of clean energy along with the new jobs, consumer savings and reduction of greenhouse gas emissions that come with it.”

In addition to his leadership of UM Energy Research Center, Wachsman holds the William L. Crentz Centennial Chair in Energy Research at the University of Maryland, College Park. Previously, Wachsman was Director of the Florida Institute for Sustainable Energy and a professor of materials science and engineer at the University of Florida in Gainesville. He has authored dozens of research papers since beginning his career as an engineer for chip-maker Intel. He earned his PhD and Masters of Science from Stanford University. Wachsman is filling out the remainder of the Board term served by Dan Goodman.

Ashton has been instrumental in growing Sol Systems into one of the country’s leading aggregators of solar renewable energy credits, or SRECs. Solar system owners earn 1 SREC for every 1,000 kilowatt hours of electricity their systems generate each year. Before Sol Systems, Ashton was a Senior Account Executive at Fannie Mae, a government-sponsored enterprise chartered by Congress chartered to provide liquidity and stability to the U.S. housing and mortgage markets. Ashton earned his MBA from the Robert H. Smith School of Business at the University Maryland in College Park.

About Sol Systems:
Sol Systems is a solar energy finance firm. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements by providing access to diverse SREC portfolios. For more information, please visit www.solsystemscompany.com.

Tags: Maryland Clean Energy, Maryland SREC, MD solar, solar, Solar finance, solar renewable energy credits, SRECs
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Sol Systems Unveils Utility-Backed Solar SREC Financing Option in MA

Thursday, December 2nd, 2010

Sol Systems, the nation’s largest solar renewable energy credit (SREC) aggregator, today announced a new three year fixed-rate SREC financing option that will help make solar a more attractive investment for Massachusetts residents and businesses.

“We are very optimistic about the solar market in Massachusetts and we are proud that we can offer solar supporters an affordable, secure way to invest in solar,” said Sol Systems CEO, Yuri Horwitz. “Our three year utility-backed SREC contract will help give prospective solar owners the financial security they need to go solar.”

Massachusetts’ solar REC (SREC) market is relatively new, but several states along the East Coast have established solar credit markets which provide cash flow that make solar energy an affordable option for homeowners and businesses. Sol Systems has been a key player in these markets. In Massachusetts, system owners can cover approximately 25% of system costs through an SREC agreement with Sol Systems.

Sol Systems gives homeowners and businesses a variety of ways to harness the value of SRECs. In Massachusetts, the company offers spot market brokerage services (Sol Brokerage) and multi-year guaranteed rate SREC contracts (Sol Annuity). The Sol Annuity product is available for three and five year contract terms.

Sol Systems also operates in 12 other states where it offers brokerage services and multi-year contracts, in addition to “Sol Upfront”, a pre-paid lump sum for the future value of solar credits.

While multi-year contracts are sometimes available through independent SREC brokers, to its knowledge, Sol Systems is the only company that is providing a 3 year offer that is backed by a contract with an energy supplier. Unlike speculators who bet on SREC futures, Sol Systems’ model provides additional security to homeowners and businesses that are concerned about the volatility of the SREC commodities market.

About Sol Systems
Sol Systems is a Washington D.C. based solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. Sol Systems enables solar developers, homeowners, and businesses to fully realize the value of their solar energy systems by providing them with a range of options for selling their SRECs. To date, Sol Systems has helped over 1,300 customers with projects ranging from 1 kW to over 1 MW realize the value of their SRECs. Sol Systems currently operates in Delaware, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Virginia, Washington, D.C., and West Virginia. For more information, please visit www.solsystemscompany.com.

Tags: Affordable solar, MA solar SREC, MA SREC, Massachusetts solar, Solar finance, solar REC, solar renewable energy credits, SREC, SRECs
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Sol Systems Partners with Standard Solar

Monday, November 22nd, 2010

Standard Solar, Inc., a leader in the full-service development, installation and financing of solar electric systems for commercial, government and residential customers, today announced a partnership with Sol Systems, the nation’s largest solar renewable energy credit (SREC) aggregator. The partnership will help make alternative energy solutions more affordable for Standard Solar customers.

“This partnership will go a long way for our current and future customers,” said Standard Solar President Scott Wiater. “Not only will it help businesses and homeowners significantly cut costs of their solar energy systems, but it will help those considering solar energy to realize that alternative energy is an affordable solution.”

Solar renewable energy credits are a critical component to making solar energy an affordable option for homeowners and businesses, and can compose up to 30 percent of a solar energy system’s payback. Through Standard Solar’s partnership with Sol Systems, customers will have access to competitive SREC pricing and the resources to secure the maximum benefit from their SRECs.

Through one SREC program, Sol Upfront, customers can receive immediate financing for their systems. Sol Systems will purchase all estimated SREC production for a 10-year period, providing customers with a one-time, lump-sum payment that can be used to pay off installation costs. The Sol Annuity SREC option allows customers to lock in the current SREC rate and receive payments for each full SREC produced. This gives customers reliable, quarterly payments as solar energy is generated.

“We are excited to work with Standard Solar, an installer with one of the best reputations in the Mid-Atlantic region,” said Sol Systems CEO Yuri Horwitz. “The partnership will extend our solar financing services to hundreds of homeowners and businesses and give them easy, economical ways to invest in solar.”

Standard Solar is also participating in Sol Lease, which allows Washington DC homeowners, schools, churches, businesses and non-profits to secure solar energy with no up-front costs. By paying a fixed, monthly payment, these groups can enjoy the savings and benefits of solar energy produced from a solar energy system for a 10-year contract term.

About Standard Solar

Standard Solar, Inc. is a leader in the full-service development, construction, integration, financing and installation of solar electric systems. Dedicated to making solar solutions more accessible to consumers, businesses, institutions and governments, the company is leading the way to energy independence. Committed to offering responsible and energy cost-saving solar solutions that conform to the highest standards, Standard Solar is one of the most trusted and respected solar companies. Since 2004, Standard Solar has been the partner of choice to make solar energy financially accessible, helping customers through financing options, including Power Purchase Agreements (PPAs) and navigating expanded federal and state and local tax credits. The company’s Standard Energy Solutions (SES) division provides energy auditing and retrofitting services for energy improvement projects. Ranked the 73rd Fastest Growing Private Company in America in 2010 by Inc. magazine, and the highest-ranking renewable energy company on the list, Standard Solar is headquartered in Rockville, MD. For more information, please visit www.standardsolar.com.

About Sol Systems

Sol Systems is a Washington D.C. based solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. Sol Systems enables solar developers, homeowners, and businesses to fully realize the value of their solar energy systems by providing them with a range of options for selling their SRECs. To date, Sol Systems has helped over 1,300 customers with projects ranging from 1 kW to over 1 MW realize the value of their SRECs. Sol Systems currently operates in Delaware, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Virginia, Washington, D.C., and West Virginia. For more information, please visit www.solsystemscompany.com.

Tags: PPA, Sol Systems, Solar finance, solar lease, SREC, SRECs, Standard SOlar
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Which is more efficient – RPS or Feed-in-Tariffs?

Friday, November 19th, 2010

Two of the most popular policy models administered to stimulate the deployment of solar energy are Renewable Portfolio Standards (RPS) and Feed-in-Tariffs (FITs).

RPS programs with a solar carve-out define a set percentage of electricity that each utility or energy supplier must procure from solar energy generators. To comply, an energy supplier can develop its own solar projects, or procure Solar Renewable Energy Credits (SRECs) from SREC aggregators or individual solar energy system owners.

In contrast, a FIT is a solar energy subscription program in which a solar energy owner can sell their electricity at a premium to the government or regulated energy suppliers. The solar electricity premiums, like the one in Ontario, Canada can be very lucrative. The stable cash flow from a state body minimizes the risk for the financier. The returns are defined for a 20-year period, the O&M costs of the facility are typically very low, and the project developer can seek financing with the FIT contract in hand.

These two policy models share similar objectives; they accelerate the deployment of solar energy technologies, build economies of scale that reduce technology costs, and carve out a space for solar within the electricity market. Both models also have unique strengths and proven track records of creating exponential growth in solar energy markets.

In some circles, FITs are held as the gold standard in stimulating solar development, while RPS programs are held in a lesser regard. Advocates of FITs can point to solar success stories like Germany and Ontario, Canada and like to discuss how a FIT could be effectively administered in America. Yet, these discussions are premised on the assumption that FITs are better for solar than an RPS. In an attempt to reframe these discussions, we would challenge this assumption and suggest that, in the mid-term and long-term, an RPS program is a more sophisticated policy instrument which is capable of creating a healthier and sustainable solar market.

The fundamental difference between the two models is that an RPS is a self-correcting model based on incentivizing individuals through secondary markets, while a FIT is a subscription program that sustains a solar market to the extent that governments continually allocate sufficient funds or political will. FITs allow solar developers to secure long term financing for solar development, but they do not create an incentive structure which encourages developers to continually reduce costs. An RPS program, as compared to a FIT, does not provide such security. In states with an RPS and an SREC market, system owners recoup their investment through the Investment Tax Credit (ITC), local rebates or incentives, and through the sale of SRECs.

While the ITC and state rebates tend to be reliable, the value of SRECs on the spot market can fluctuate dramatically over short periods of time. This spot market variability thus creates risk for the system owner and financier. And, if we were to stop the analysis here, it might seem clear that FITs are better for solar energy than an RPS. However, this conclusion would overlook the mid-term and long-term growth of solar markets in favor of robust short-term growth (and it would also ignore the fact that system owners can lock into multi-year guaranteed rate SREC contracts).

In fact, one should recognize that the price fluctuations in SREC markets are a result of supply and demand, and are part of the way that RPS markets adjust themselves. The supply is set by the amount of solar energy installed, and the demand is defined by the compliance requirements as established in the RPS. In the event a solar market witnesses exponential growth in solar development and SREC supply outpaces growth in demand, prices will be pushed down for SRECs.

And, to be clear, this is the goal of both an RPS program and a FIT: drive economies of scale and create a competitive market for solar technologies. If prices are pushed downwards in SREC markets, system developers will be incentivized to reduce the costs of the development in order to maintain margins. In the event prices are too low, the supply of SRECs will be short, energy suppliers will be required to pay higher prices for SRECs, and the market will receive the stimulus needed to push development forward again.

In a state with an RPS program and a robust SREC market, the winners will be those that can stay ahead of the curve in developing systems at lower and lower costs compared to other developers. The losers will be those that continually lag in developing systems at lower costs compared to other developers in the market. In so doing, an RPS program creates competition in the market that will ultimately drive down the costs of solar energy and make it more affordable for more people.

FITs, on the other hand, do not create the same sort of competition between developers to reduce costs. Depending on the FIT premium and the payment schedule, developers can maintain strong margins whilst making no investments in efficiency. The result is FITs can become oversubscribed, burn through allocated funds, and then come to a halt because the market never weans itself off of the crutches of government support. Because of the amount of capital required to fund these programs, FITS are also subject to political scrutiny, and if political change occurs, it can wipe a market out almost overnight (i.e. Spain).

For all these reasons, we would conclude that short-term FITs can create spectacular growth in solar markets, but are less sustainable compared to an RPS program which can adjust to the basic laws of supply and demand.

About Sol Systems:
Sol Systems is a Washington D.C. based solar finance and development firm that is committed to making solar energy more affordable. We enable homeowners, businesses, and solar developers to finance their solar energy systems by providing a conduit for solar renewable energy credit (SREC) monetization and long-term price stability. With more than 1,200 customers across 13 states, Sol Systems has become a critical player in developing SREC markets and financing solar energy systems. We are proud to be the oldest, most sophisticated, and largest SREC aggregator in the country.

Tags: Solar Feed-in Tariffs, Solar finance, Solar incentives, solar renewable energy credits, SRECs
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Mid Size Commercial Solar Projects Require Guaranteed Long Term SREC Contracts

Monday, November 15th, 2010

The mid-Atlantic region has witnessed a rapid growth in solar installations over the past few years. While the large multi-megawatt commercial projects make front-page news, it is interesting to note that there is also vibrant growth in mid-size commercial projects, ranging from 50kW-500 kW. Today, the total capacity of solar installed in the PJM region (solar projects in the mid-Atlantic region) is 262 MW, of which 83 MW comes from systems in the 50 kW-500 kW range. Moreover, the mid-size commercial project segment has shown steady growth, adding approximately 26 MW each year since 2009.

Large solar projects face significant financing hurdles because millions of dollars of capital are required, but these projects also fetch the attention of large banks, energy suppliers and tax equity investors. Mid-size commercial projects face the daunting challenge of financing their projects with less visibility, but they can be successful if they make use of all the available incentives and financing tools.

Many mid-size commercial developers and installers can help the customer through the process for applying to federal and state grants; however, monetizing the Solar Renewable Energy Credits (SRECs) is often more difficult. SREC markets are complex for two main reasons. First, SREC markets differ across various states depending on the State’s Renewable Energy Portfolio Standard (RPS) and Solar Alternative Compliance Payment (SACP), the fee paid by energy suppliers for non-compliance of RPS requirements. Second, SREC markets have been known to be fairly volatile due to legislation changes and variations in supply and demand. These challenges can be mitigated by finding a stable partner with long-term SREC contracts who can help system owners navigate the legislation, and provide security of cash flow payments which allow system owners to accurately determine their payback period.

Investing in a mid-size commercial solar project is a sizeable investment for a small business owner or homeowner, thereby making it imperative to ask some difficult questions to the SREC aggregator or financier. The most important question to ask the SREC aggregator is: “Are your customer contracts backed up with energy supplier contracts?” If an SREC aggregator has long term contracts with energy suppliers, then the SREC firm has foresight into future SREC prices and can offer a fair, guaranteed rate. On the contrary, if an SREC aggregator is speculating on price and hoping to sell the SRECs in the spot market at a future date without any security of a long term agreement, their customer is exposed to a lot more SREC market risk. System owners should also be aware of the other factors that shape the SREC markets, like regulatory changes, rapid adoption of solar, and market shifts due to large-scale solar projects.

Being the oldest and largest SREC aggregator in the country, Sol Systems has matched a majority of its long-term SREC contracts with its energy supplier contracts, thereby providing the market stability and flexibility that mid-size commercial customers seek. Today, Sol Systems works with over 200 developers and installers in financing mid-size commercial solar projects. More information can be found at www.solsystemscompany.com.

Tags: Affordable solar, PA SREC, Pennsylvania SREC, renewable energy, Renewable Portfolio Standard, RPS legislation, Sol Systems, Solar finance, solar renewable energy credits, SREC, SREC demand, SREC long term contract, SREC supply, State Renewable Energy Incentive Programs
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Sol Systems is Hiring: Solar Analyst

Wednesday, November 10th, 2010

Sol Systems is hiring (2) part-time Solar Analysts / Interns.

The ideal candidate will be a current student or a recent graduate that is: resourceful, detail oriented, and passionate about the development of renewable energy. A successful Solar Analyst will possess the following skills and attributes:
1. Intermediate to advanced understanding of Microsoft Excel
2. Excellent research and persuasive writing skills
3. The ability to understand a complex and evolving market
4. A demonstrable interest in: energy, renewable energy, energy finance, project finance, entrepreneurship, and/or renewable energy legislation and regulations
5. Enthusiasm and a great attitude

The Solar Analyst will be critical to the success of a dynamic company in a nascent industry. The Solar Analyst will assist with registration processes, administrative duties, and discrete research projects. The Analyst will be expected to respond to customer queries, research industry news, write timely blogs, and provide clearly defined deliverables. The position will require attention to detail, excellent record keeping, and efficient allocation of time and resources.

Through this position, the Solar Analyst will gain familiarity with solar renewable energy credit (SREC) legislation, solar finance mechanisms, solar industry news, solar industry language, as well as new product development in a fast paced, start-up environment. The position will provide a fantastic launching pad for a career in renewable energy.

Commitment & Compensation: The internship will last for a term of at least 3 months (with the understanding that students will take time off for the holidays). Applicants will be expected to work 10 or more hours each week. Solar Analysts will be paid a stipend of $2,000, or an amount commensurate with the length of the commitment and prior experience. Successful candidates will be eligible for a full time position.

To Apply: Please submit a resume and cover letter (no more than one page each) to intern@solsystemscompany.com. Qualified candidates will be subsequently asked for a writing sample and three professional or academic references.

Applications for this position will be accepted immediately and reviewed on a rolling basis. Preference will be given to applicants that can work out of our downtown DC office two days a week.

About the Company: Sol Systems is a solar energy finance firm primarily involved in the purchase, aggregation, and sale of solar renewable energy credits (SRECs) in the Northeast, Southeast and Midwest. Sol Systems was founded with the intention of facilitating the development of the solar energy market. The company is based in downtown Washington DC.

Tags: renewable energy career, renewable energy job, Solar finance, solar job, solar renewable energy credits, SREC, SRECs
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Sol Systems Launches Sol Lease in Washington DC

Monday, November 1st, 2010

Sol Systems is proud to announce Sol Lease, D.C.’s first solar lease option. Sol Lease is designed to help homeowners, businesses, non-profits, schools, and churches put solar on their roofs and enjoy immediate energy savings. Customers that take advantage of Sol Lease will receive a solar energy system to host on their roof with no upfront costs. They will then simply pay a small monthly payment (much like a car lease payment) and enjoy access to reduced utility bills for the contract term. Sol Lease customers will save an average of 15% on their current utility bills, and are likely to save more as electricity prices increase.

“We are proud to be able to offer Sol Lease, and we see this as a turning point. We are a DC-based company, and we live in the neighborhoods we’re investing in. Success for the solar community means innovation in technology, but it also means innovation in finance. Sol Lease helps our installer partners change the equation and provide solar energy to many that otherwise couldn’t secure it,” noted Sol Systems CEO, Yuri Horwitz.

Sol Systems is currently offering Sol Lease on a pilot basis in D.C. Upon completion of the pilot phase, Sol Systems plans to offer Sol Lease at a larger scale and potentially in other markets.

For more information about the program, please visit www.solsystemscompany.com/solar-lease or email lease@solsystemscompany.com.

About Sol Systems
Sol Systems is a Washington D.C. based solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. Sol Systems has helped over 1,200 customers finance their solar projects, ranging from 1 kW to over 1 MW. Sol Systems currently operates in Delaware, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Virginia, Washington, D.C., and West Virginia and has partnerships in place with over 100 solar installers and developers. For more information, please visit www.solsystemscompany.com.

Tags: Affordable solar, District of Columbia, Solar finance, solar lease, Washington DC Solar
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