Home > Securitization > News on Securitization > Solar energy market gets hot! – Initiatives to provide access to low cost public capital
April 9, 2013:
Securitisation of solar photovoltaic (PV) assets has drawn attention of the investors and regulators alike and to give impetus to this asset class, the U.S Department of Energy (DOE) has created a fund which is called "SunShot Initiative[1]" which shall fund the securitisation of solar PV assets.
DOE through its National Renewable Energy Laboratory (NREL) has established a Solar Access of Public Capital (SAPC) Working Group which shall focus on standardization of power purchase agreements, lease documents with regard to residential and commercial deployment of the assets to enable evaluation of asset performance and credit default risks.
Development of the solar securities market and access to low cost public capital for developing the solar energy sector seems to be the focus area for the regulators and securitisation market industry players alike.
As per a U.S research, revenues from PV assets are forecasted to reach USD 123.6 billion by 2022 clearly indicating that solar energy financing shall soon become the mainstream focus for the industry players.
[Reported by: Pooja Rawal]