NREL's Securitization Library is Your Go-To Source for All Things Securitization

A significant portion of the NREL Project Finance Team's work over the past year has been leading the Solar Access to Public Capital (SAPC) working group, which has brought together many of the critical stakeholders in the solar, finance, legal, and advisory spaces to lay the groundwork for the securitization of solar photovoltaic (PV) cash flows. Securitization represents a means for the solar PV market to access the capital markets where it could potentially reach more investors and reduce its cost of capital relative to current rates. All of this could drive cost reductions in the price of solar energy, making it more competitive with conventional forms of generation.

Securitization is the process by which an illiquid asset is made into a liquid, tradable, investment product. It is a complex pathway that includes several entities (asset originators, investment banks, attorneys, trustees, servicers, and others) as well as some financial engineering. In an effort to demystify this esoteric financial process, the NREL Project Finance Team has assembled a pool of securitization resources for our site's visitors as a sort of research and education "one-stop-shop." We're calling this the Securitization Library.

This Securitization Library includes a comprehensive list of reports and articles published by NREL on solar securitization, as well as a range of background materials and market insights from finance and legal professionals.  The library also contains materials on real estate investment trusts (REITs) and master limited partnerships (MLPs), detailing their potential to further open up the solar asset class to low-cost public capital. Additionally, there are some resources from credit ratings agencies such as Fitch, Moody's, and Standard and Poor's, which offer a glimpse into how these institutions will value and rate solar assets.

The Securitization Library contains materials organized under five general headings:

NREL Resources: All of NREL's analyses, commentary, and other materials related to solar securitization

Background: A selection of introductory resources on the topics of securitization and structured finance

General: A range of market insights, reports, and other materials covering solar securitization specifically

MLPs and REITs: A special section with documents focused exclusively on MLPs and REITs and their potential for the solar asset class

Ratings Agency Commentary/Guidance: Publicly available documents describing the methodologies employed by ratings agencies to assess the risks in the solar asset class. (Note: Each ratings agency requires the creation of a profile before accessing their materials; this process is free of charge.)

The Finance Team is committed to posting additional content to the library as it becomes available, so be sure to bookmark this page and check back often. The link to the Securitization Library is located under the "Resources" section of the Renewable Energy Project Finance homepage.

Please don't hesitate to email us if you have any questions about this library or have additional materials that you would recommend posting.