Project Developer Financing Pre-NTP
We Provide Development Capital
We know early stage development can get expensive. That’s why SolRiver Capital invests Development Capital in early-stage projects (“Pre-NTP“) that have a clear path to success.
SolRiver invests in clean energy projects across the US. We bring the full capital stack, with flexible options, and a streamlined process
What is Development Capital?
Development Capital is a term referring to the capital invested in a renewable energy 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
- Our Pre-NTP investment criteria for developers
- Examples of early-stage development expenses we finance
- How SolRiver structures project financing
Criteria for Early-Stage 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 development capital when a project reaches the limited notice to proceed (“LNTP”) phase. Furthermore, we can provide full 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:
- 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 early stage 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, consider:
The duration of time from financing the project until the commercial operation date
The risk the project may not reach Notice to Proceed
The enhancement offered by working on a portfolio of project opportunities with our partner
Do you need Development Capital?
Give us a quick overview of your project below. We’ll email you back with next steps.
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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.