Market Analysis Insights
Financing a renewable energy project can be a difficult process. Finding money to borrow (debt) and someone to take ownership (equity) are often cited as two of the main barriers to project development.
Two common ways homeowners can reduce the amount of electricity they buy from their utility is by making energy efficiency (EE) upgrades (e.g., new efficient lighting or insulation) and by installing a solar photovoltaic (PV) system.
The financial crisis spurred Congress to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act (hereupon referred to as “the Act”).
Previously, I wrote about an early stage analytical effort to better understand the rising cost of wind energy in the United States. A critical component of this study provided an international perspective by comparing the cost of wind energy across a sample of seven countries.
There’s one thing about large-scale solar projects - they take up a lot of land. And if you need an undeveloped, sunny spot in the western part of the country, there’s a good chance you will want to chat with the Bureau of Land Management (BLM).
In New Jersey, an attractive new auction-based financing program, SREC-based Financing Program, promises to make small solar photovoltaic (PV) projects financeable. Winning bidders have recently received renewable energy certificate (REC) contracts equivalent to over $400/MWh for 10 years.
Several Colorado counties were allocated Qualified Energy Conservation Bonds (QECBs). So far, the counties have faced some difficulty making use of their bonds. This could have been further compounded if a voter ballot initiative was passed - but the law failed in the November elections.
Geothermal electric projects are a steadily increasing source of new renewable electricity generation in the United States. As of April 2010, the United States has nearly 3,087 MW of total installed capacity—placing it as the global leader in geothermal electric generation.
The 1603 Treasury Grant (TG) program was created by the federal government in 2009 as part of the American Recovery and Reinvestment Act (ARRA) in response to the negative impact that the financial crisis has had on the tax equity market.[<
Can an energy project be financed if it has a negative cash flow? For projects with debt, must a minimum debt service coverage ratio (DSCR) be met annually? The short answers are no and yes, but, of course, there are some exceptions. Typically, equity and debt investors both require positive cash flows, and debt lenders require the ability to meet annual DSCRs.