Construction Equity
We provide Construction Equity
SolRiver provides developers construction equity to help fund build-transfer renewable energy projects. The capital may be used to pay equipment deposits, interconnection costs, and other early stage construction costs.
What is Construction Equity?
Construction Equity is a term referring to the capital invested in a renewable energy project to fund construction. The funding may cover equipment deposits, construction costs, and other fees. It also can act as a bridge to a construction loan from a lender..
Below we discuss
- Our Pre-NTP investment criteria for developers
- Examples of early-stage development expenses we finance
- How SolRiver structures project financing
Criteria for Renewable Energy Construction Funding
In order for a project to qualify for construction capital, it needs to have a clear path to NTP. In short, we can invest development capital when a project reaches the limited notice to proceed (“LNTP”) phase. Furthermore, we can provide full project 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:
- An executed Power Purchase Agreement (“PPA“) or Energy Service Agreement (“ESA“).
- A fully executed Site Lease or Site Lease Option Agreement.
- An Interconnection Agreement or permission to interconnect from the applicable utility.
- The Conditional Use Permit, along with ancillary permits, tentatively approved by the local permitting authority.
- The Site has clean title, meaning all easements locus to the project site have been addressed.
- The EPC and O&M agreements are in place.
- If applicable, a REC Purchase Agreement and other rebate awards have been finalized.
Limited Notice To Proceed or “LNTP”
- Requires a strong indication that an 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 We Structure Development Capital
SolRiver provides construction capital in a variety of ways depending on the project needs.
In structuring our investment, we consider:
The duration of time from financing the project until the commercial operation date.
The risk the project may not reach Commercial Operation.
The enhancement offered by working on a portfolio of project opportunities with our partner.
Let’s Discuss Your Project
We’re ready to look at your project. To get in touch with us, pick the option below that’s easiest for you.
Send Email
You can always email us about your project. Make sure to include some information such as system size, location, and offtaker.
Submit Online Form
Use our online project intake form. Answer a handful of questions about the project, and our team will be notified immediately.
Use Excel Sheet
Alternatively, we can provide you a short Excel worksheet with our project inputs. Simply email the file back to us with your information and we’ll be sure to review it.