SolarTech, CalCEF seek to speed up capital formation for solar projects
Nov 16, 2011 - Non-profit corporation The California Clean Energy Fund (CalCEF) and SolarTech, an industry consortium, said yesterday they had agreed to form a joint working group that would seek to accelerate capital formation for commercial solar project of less than 1 MW.
SolarTech co-founder and executive director Doug Payne said that the below-1-MW, or small to medium, commercial market sector was under-capitalised and that the initiative aimed to change that.
Under the memorandum of understanding signed by the two organisations, the working group will identify market gaps regarding quantification of project risk, capital formation and bankability and will also put up proposals designed to limit the gaps between estimated and real project risk.
Payne said that the higher acceptance of solar as an asset class was tied to proper assessment of output and risks around cash flow forecasts.
CalCEF president Dan Adler said the partnership aimed 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".
"The securitisation 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," Adler said.