Electricity

Why Solar Securitization Makes Sense

Solar structured transactions within a capital markets securitization approach can help increase the penetration of solar. In this article we will explore ideas for solar securitization in more detail.

Renewable energy generation and distributed solar generation in particular has made considerable progress over the last few years. Firm like Solar City on the residential side and Tioga Energy on the commercial side have helped move distributed solar forward. While there has been considerable progress, the current estimates are that only about 30k solar leases have been implemented on the residential side and a much lower amount for commercial PPA. The potential is vast, with 44 million rooftops in the United States. While there are differences in the residential and commercial markets the potential for securitization exists in both markets. Though in this article we focus on the commercial sector in more detail then the residential, the core issues are similar in both markets.

via – Renewable Energy Magazine, at the heart of clean energy journalism.

Categories: Electricity, Energy, Finance