The Evolution Of Solar Finance

It was not that long ago solar energy developers needed to convince a capital partner there was enough sunshine in New Jersey to power homes. The uncertainty of the market, questions about the reliability of the photovoltaic panels themselves, and unfamiliarity with power purchase agreements caused significant challenges to get new projects financed. Over time, as the right policies began to align, projects were built and the cost of solar panels declined. The risks began to mitigate allowing more capital to enter the market and reduce transaction costs. Cheaper deals meant better prices for the power, better prices meant more deals, and the solar marketplace grew exponentially. Today, solar is competing for a share in the $5 trillion renewable energy market projected for 2030. This changing business landscape leads us to the next phase of solar finance.

Read the rest of the article in North American Clean Energy.