Solar  and other clean power projects can be financed in many ways.  Lenders considering the sector need to understand the tax and revenue-related incentives available and how they shape project financing structures proposed by project developers.  Project size, buyer terms, and the developer’s own financial strength and long-term project ownership goals also influence the choice of financing structure.

Clean power projects may feature variable sale prices, shorter terms, non-investment grade buyers, innovative technologies, limited recourse to project investors, or small in scale.   Lenders can create new lending opportunities by addressing such challenges.

Birch Tree Capital assists lenders in clean power projects to:

  • Identify suitable industry sectors and specific opportunities.
  • Craft loan terms 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 project documentation and 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.