In the near future, investing in a rooftop solar array may be as easy as buying a television. That’s, at least if Solar Energy Industries Association (SEIA) and the Solar Energy Finance Association (SEFA) have anything to do about it. The organizations formed a partnership to help make it easier for homeowners to go solar.
The newly formed Solar Energy Finance Advisory Council (SEFAC) will help provide access to investment capital for wide-scale, low-cost solar development. The partnership will allow the organizations to speak as one and organize solar developers and investors to lower the cost of investment capital and meet the demand of the always growing solar industry.
“This is an important strategic move for us,” said Mary Rottman, president of SEFA. “Backed by the staff and resources from SEIA, we are very optimistic that we will achieve our mission of reducing the cost of capital and furthering growth in the solar industry.”
The partnership will focus on advancing the availability of capital for new solar customers by facilitating communications between investors, financial institutions and government entities. Additionally, SEFAC will serve as an intermediary entity by communicating technical and financial performance of solar projects to increase investor confidence.
In order to provide solar developers with ways to raise low-cost capital, the partnership will aim to expand the supply of tax equity from investor institutions through long-term equity investments, which is critical to raising low-cost capital.
“We are excited to combine with SEFA for the good of the solar industry,” said Tom Kimbis, interim president of SEIA. “Solar projects represent a high-quality source of long-term cash flows, making them great investment opportunities. Through this finance advisory council, we aim to lower the cost of capital and make solar even more cost-effective for residential, business and utility customers.”
Access to low-cost financing for residential and commercial rooftop solar remains an obstacle to solar industry growth. However, solar developers and lending institutions are offering more creative financing options for prospective solar customers as the rooftop solar sector rapidly grows. For instance, Spruce Finance works with solar installers and customers to create customized financing options rather than working with just local banks and lenders.Tweet