What financing structures can be used for PV projects?

There are many types of financing structures that can be applied to PV projects, such as corporate financing, which typically has an on-balance-sheet structure as aforementioned, project financing, crowd sourcing, or even personal credit lines.

How to mitigate risk in financing a solar project?

The risk in financing a solar project can be mitigated with proper assessment of the financial and technical viabilities. While the financial viability depends highly on the financing structure and contractual terms, confidence in the technical viability mostly comes from the solar resource assessment exercise.

Are utility-scale photovoltaic (PV) plants bankable?

In the first half of the chapter, an overview of financing and bankability of utility-scale photovoltaic (PV) plants is provided, with a slight touch on microgrid PV financing. The discussion revolves around risk management, which requires rigorous assessment of the financial viability.

Why is risk management important in financing a solar project?

Risk management is a central consideration in financing a solar project. Building sizeable PV plants usually requires high initial capital investment, which is a key risk factor for companies that intend to build them, regardless of the internal financial capacity to absorb the cost.

Is solar PV a viable energy source?

Considerable effort has been made in promoting the electricity production from renewable energy sources, such as solar photovoltaic (PV), wind, or hydropower. In particular, the development of solar PV has been thriving—it becomes increasingly commercially viable—in places that have readily available access to state-owned power grids.

Should a back-up energy source be included in the financing?

If a back-up energy source, for example an energy storage system, were to be included in the financing, a more detailed and representative breakdown of the capital expenditure (CAPEX) must be taken into account, and a more accurate and effective EYA must be carried out to determine the overall yield.