Clean Energy Project Investment Structuring
How SolRiver Invests In Solar Projects
SolRiver makes investments in developers and installers with qualified solar projects. For us, a qualified project is one that has a clear path to commercial operation. Typically, we partner with developers after they’ve signed a PPA or equivalent offtake agreement with a creditworthy energy customer.
What is a Solar Investment?
A solar investment is a capital contribution by a clean energy investment fund into the installation of a solar energy system in exchange for a share of the income earned from the PPA customer and tax benefits from the system. SolRiver structures our solar investments to cover all costs incurred in bringing the project to COD.
Common Solar Investment Deal Structure
SolRiver Capital is open to a variety of transaction structures. In the most common deal, we purchase 100% of the ownership interest in a project company. Our total Solar Project Investment is the amount needed to cover EPC costs and a Developer Fee. After we purchase the solar project company, we comply with the requirements of the project agreements to build the system and sell power to the customer. We then collect the long-term contracted energy sales under the PPA, which repays SolRiver’s initial investment.
Solar Investment Agreements
When SolRiver buys a project, we enter into a solar project company purchase and sale agreement (“PSA”) with the developer. In addition to the PSA, the project company must have a handful of other agreements in place to satisfy our project diligence checklist. An example of the other agreements negotiated as part of the Solar Investment are discussed below:
Developer Service Agreement
An agreement describing our partner’s responsibilities in monitoring and completing the project. The Developer Fee or “Dev Fee” paid under this agreement reflects the value of setting up the project as well as overseeing completion.
Of course, we can acquire projects outright at NTP. If the Developer does not want to participate in the construction process, we can bring in an EPC-partner to take over.
Let us know your preference when you reach out, and we can tailor an offer to suit your objectives.
Purchase and Sale Agreement
The PSA transfers 100% of the membership interests of the project company to SolRiver in exchange for the agreed purchase price.
In order to ensure the system operates at acceptable levels during the course of the PPA term, SolRiver requires operating and maintenance agreements to be in place.
- We structure these agreements on an “as-needed” basis. When service is required, SolRiver will call upon the O&M provider and make payments accordingly.
- This agreement can be with you or a third-party depending on the project.
EPC Contract (if applicable)
A turnkey construction contract outlining the scope of work, equipment procurement, system design, and commissioning of the solar project. This agreement can be with you or with a third party.
Asset Management Agreement
Unlike other investment groups, SolRiver prefers to let our partners keep the relationship with the offtaker.
- We’ll pay you an annual fee for acting as “front-line” support with the customer.
- SolRiver can take on this responsibility if needed, but we encourage everyone to take this option and maintain their customer relationships.
Access templates in our Contract Library
The Solar Developer Platform gives you template contracts we use to invest in projects.
It also offers online Solar Investment Models and a comprehensive Diligence Checklist.
Find Out What SolRiver Will Invest In Your Solar Project
There are several ways to get the conversation started – pick the one that is easiest for you.
You can always email us about your project. Just include some basic information like system size, location, and offtaker. If you have an executive summary, feel free to attach that too.
You can also use our online project intake form. Answer a handful of questions about the project, click submit, and it sends the information straight to our team.
Alternatively, we can provide you a short Excel worksheet with our project inputs. Simply, fill it out and email the file right back to us. We’ll be sure to review it quickly.
Need Project Financing?
If you’re interested in funding your solar project with SolRiver, please use this form to tell us a bit about the project. We’ll reply quickly with the next steps.