Construction Financing

SolRiver Provides Capital For Construction

What type of Construction Funding?

SolRiver supports the construction of Build-Transfer projects by providing construction equity. We partner with the Developer/EPC/Sponsor to fund the initial construction costs, which is typically required before a construction loan may be drawn. We can also assist in arranging the construction loan. Typically, our construction equity is repaid through the Build Transfer payments.

Example Uses of Construction Funding

SolRiver is flexible in the use of the construction equity. It typically may be utilized to fund any project related expenses, including a portion of the development costs. Uses include the following:
Interconnection Deposits

  • Equipment Deposits
  • LNTP/Engineering Fees
  • Technical Studies (e.g. geotechnical reports, topos, surveys)
  • EPC Payments

Ask about our investment process

What do you want to learn about:

    What Qualifies for Construction Funding

    SolRiver invests construction equity in an array of renewable energy project types. Most are being built under a Build-Transfer arrangement with a utility. Others are being by an EPC or Developer for an IPP or Corporate customer. In each case, SolRiver partners with the project’s sponsor responsible for ensuring the project reaches COD, such as the Developer, EPC, and/or IPP.

     Project Revenue Structures

    • Built Transfers
    • MIPA/PSA
    • PPA/ESA

    Technology Types:

    • Solar (DG or utility scale)
    • Solar + Storage
    • Standalone storage

    Why SolRiver For Construction Equity?

    SolRiver understands construction equity because we fund the construction of dozens of renewable energy projects a year. Sitting in the owner’s role, we know the challenges that arise and how to solve them. Based on that experience, we are comfortable funding a wide range of pre-construction activities. We have an efficient underwriting process that is draws heavily on our long history of getting projects to completion.

    Our Approach to Construction Funding

    SolRiver Capital invests in financing construction for Build-Transfer projects or other situations where the sponsor sells the system at COD. Many of our partners  already have a construction loans arranged to finance most of the construction. However, the Construction Lenders require those developers (or sponsors) to contribute the first 15% of costs before drawing on the construction loan. 

    SolRiver Capital’s Construction Equity covers those initial construction costs not covered by your loan. That way, you get the full amount of capital you need to drive the project to COD. 

    If you don’t have a construction loan, SolRiver can fund construction itself based on a milestone payment schedule.

    How We Structure
    Construction Equity

    Typically, we structure Construction Equity as an equity investment in the project company (“ProjectCo”). In a Build-Transfer project, our investment is typically repaid when the utility/buyer pays for the project at COD. 

    Of course, SolRiver is also happy to provide the takeout financing on these projects too. In that case, we simply deduct the Construction Equity repayment from the final Purchase Price we pay to you.

    We offer EPC Finance Too

    SolRiver is also happy to provide EPC Finance by providing a line of credit or construction revolver to the EPC directly. The EPC can draw funds upon reaching certain construction milestones, thereby financing the installation of the system.

    You can also use our online project intake form. Answer a handful of questions about the project and our team will be notified immediately.