Solar, wind, and other clean power projects can be financed in myriad ways.  Lenders considering such projects need to understand the tax and revenue-related incentives available and how they shape project financing structures desired by project developers.  The technology, project size, and the project developer’s long-term goals also influence financing structure choices.  Such factors affect the potential role for debt financing.

Solar and other clean power projects can involve variable sale prices, non-investment grade buyers, innovative technologies, limited access to project investors and developer, or be smaller than traditional project financings.   Lenders can create new lending opportunities by addressing such challenges.

Birch Tree Capital can assist lenders in clean power projects to:

  • Identify suitable industry sectors and specific opportunities.
  • Craft loans matching developer needs with lender capabilities.
  • Conduct “fatal-flaw” initial reviews.
  • Advise on current loan market conditions, including terms and conditions and loan structures.
  • Review tax credit monetization structures of project equity.
  • Assist in negotiating term sheets and full documentation.
  • Review pro forma financial models.
  • Source outside advisers, such as legal counsel, engineers, insurance, permitting, and tax valuation experts.
  • Coordinate due diligence review process with the project sponsor and tax investors.