Solar Project Developer Financing Pre-NTP
SolRiver Provides Development Capital
We know early stage solar development can get expensive. That’s why SolRiver Capital invests Development Capital in early-stage solar projects (“Pre-NTP“) that have a clear path to success.
What is Solar Development Capital?
Solar Development Capital is a term referring to the capital invested in a solar project before the project has achieved full NTP status, for use on things like paying site lease options, interconnection deposits, permit fees, and equipment deposits.
Below we discuss (1) our Pre-NTP investment criteria for solar developers, (2) examples of early-stage solar development expenses we finance, and (3) how SolRiver structures solar project financing.
Criteria for Early-Stage Solar Project Development Funding
In order for a project to qualify for development capital, it needs to have a clear path to NTP. In short, we can invest solar development capital when a project reaches the limited notice to proceed (“LNTP”) phase. We can provide full solar project financing or construction financing once the project reaches full NTP.
What is Full NTP Project Financing vs Limited Notice To Proceed
“Notice To Proceed” or “NTP Project Financing” means the project, typically, has:
- A Power Purchase Agreement (“PPA“) or Energy Service Agreement (“ESA“) is in place.
- If applicable, a REC Purchase Agreement and other rebate awards have been finalized.
- A fully executed Solar Site Lease or Solar Site Lease Option Agreement in place.
- An Interconnection Agreement or permission to interconnect from the local utility.
- The Conditional Use Permit, along with anciallary permits, tenatively approved by the local permtting authority.
- The Site has clean title, meaning all easements locus to the solar array have been addressed.
- The EPC and O&M agreements are in place.
Limited Notice To Proceed or “LNTP” means:
- Requires a strong indication that a solar energy revenue contract will be executed. For example: An offtaker has begun negotiating a PPA, the project was shortlisted in an RFP, or a Feed-In-Tariff program (or equivalent) is available.
- The local utility completed a preliminary impact study. Full Interconnect approval and cost estimates are not required.
- Site Control is in place, with at least a Lease Option or Easement. Clean title is not required at this point.
In addition to the items above, other outstanding issues we can accept at the LNTP Project Financing stage are:
• CUP or other permits in progress.
• EPC and O&M providers not yet finalized.
• Technical issues such as system configuration, equipment selection, are still in flux.
How To Determine If Your Solar Project is Ready For Early Stage Development Capital?
If you are unsure whether your project has reached LNTP or not, simply send your project to us. Our team will quickly review the information you provide. Then, we’ll follow up with you and ask for any materials necessary for project evaluation. We’ll then let you know what type of Solar Project Investment we can offer.
Do you need Development Capital?
Give us a quick overview of your project below. We’ll email you back with next steps.
How We Structure Development Capital
SolRiver provides early stage solar development capital as part of a permanent investment in the project’s long term ownership. We structure our Pre-NTP investment in a variety of ways depending on the project needs.
In structuring our investment, we’ll consider:
• the duration of time from financing the solar project until the commercial operation date;
• the risks the project may not reach NTP;
• the enhancement offered by working on a portfolio of project opportunities with our partner.
Talk to SolRiver About Pre-NTP Financing
There are several ways to start the conversation with us. 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.
Get Development Capital
If you have a project, please let us know.
You can use this form to: tell us a bit about the project and how you want us to help.
We’ll review your information quickly.