Solar Securitization: Leveraging Alternative Financing Without Jeopardizing Existing Investor Tax Breaks

This CLE course will discuss solar securitization, examining its role in solar financing and challenges to anticipate. The panel will guide counsel on leveraging solar securitization as an alternative financing tool while protecting investor tax benefits.

Continued growth in the solar industry depends on its access to capital. One of the most innovative ways that solar companies have been using to access capital is through the securitization market.

Solar's growth has been propelled by the use of a third-party financing model where solar systems are owned by third parties who lease them or provide power to customers under long-term leases and power purchase agreements.

Both models are a good fit for securitization. Securitization is an emerging strategy for solar financing that gives developers access to capital markets to get favorable financing opportunities. Investors and customers also benefit from solar securitization.

The securitization of solar assets can play a crucial role in meeting the rising demand for solar financing. However, securitization must be structured to avoid jeopardizing the tax benefits in the underlying tax equity transactions while satisfying the requirements of the securitization market.

Listen as our authoritative panel examines the role of securitization for solar transactions, and provides guidance for how these deals are being structured and what to expect in the markets in 2020 and beyond.