November 16, 2011

SolarTech, CalCEF sign MOU to increase capital formation rate for 1MW commercial PV projects

PVTech, Syanne Olson

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SolarTech and CalCEF have signed an MOU aimed to fast-track industry efforts to better investor confidence, decrease project risk and improve capital flow through a combined effort between finance, performance and reliability leaders. The two organizations will form a Technical Working Group that will find market gaps in quantification of project risk, capital formation and bankability.

“Increased acceptance of PV as an asset class by Wall Street, venture capital, and equity markets in general is closely linked to proper evaluation of system production output, and the risks associated with cash flow projections,” said Doug Payne, SolarTech co-founder and executive director. “The <1MW commercial market segment is under-capitalized. We want to change that.”

The group intends to build upon existing collaborative work with Sandia National Laboratories for the commercialization of new technologies through validated system performance and reliability. In the future the group also plans to offer solutions aimed at cutting gaps between perceived and real project risks across the project delivery chain.

“The securitization of solar assets will unleash one of the most powerful forces in finance, establishing an enormous new pool of capital to support the industry’s growth,” said Dan Adler, president of CalCEF. “With SolarTech, our goal is to identify and promote industry standards for establishing solar as an asset class, in order to increase the investor base and create ownership opportunities for broad new categories of investors.”

SolarTech and CalCEF advised that throughout 2012, both companies will work with regional banks and supporting financial institutions to further promote solar as an “asset class, serve local markets with local capital and create local jobs.”

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