Profit-sharing financing lease or new trends of PV plants financing

Polaris solar PV net news: financing lease is a lease contract the lessor and the lessee signed, signed a purchase agreement with equipment suppliers, delivery of the leased property to the lessee by the supplier, and pattern of the lessee to the lessor to pay rent, leasing is essential in order to use assets and non-asset acquisition financing, natural combination of services and financing models. Development and operation of photovoltaic power stations similar to commercial property, stable cash flow, introduction of leasing mode. Finance lease asset-liability structure and business model to optimize operator, increased lever while maintaining a high credit rating.

Distributed-volt power station

Combination model of domestic financing lease and photovoltaic power stations. Leasing company for construction and operation of the power station provides direct service of rental and sale and leaseback. We believe that the lease may enhance the project’s financial leverage ratio (secondary lever) to enhance efficient use of funds, is important for power plant operators break finance bottleneck. While rising funding costs impact short-term profit release, IRR and ROE had a certain promotion. In addition, PV companies and finance leasing joint venture power plant operating platform, similar to Solarcity in cooperation with funds and make a profit-sharing model, no precedent in the country.

Represented in Solarcity and SunRun, Sungevity’s company in the United States solar leasing business areas such as California and New Jersey, provide customers with PV systems design, installation and maintenance, by charging the customer’s rental fees, over the next 20 years a steady cash flow. For the user, by using the mode at low cost or no cost access to photovoltaic power generation system and reduce electricity costs in the future.

Funding and Solarcity with Google, capital investment funds through a form of joint venture, subletting and sale and leaseback, solve a lease at the initial high investment result of funding shortages. All funds in cooperation will enjoy government subsidies and project return on investment, participation is high. In operation links, users at the cost of selling roofs can get low price discount, the power company can also obtain (buy-sell) price difference of benefit.

Solarcity’s lease on the domestic reference, but difficult to promote in the near future. (1) is different from the United States of the ITC, accelerated depreciation tax shield and green power certificates (REC), domestic FIT and electricity subsidies the unbalanced distribution of dividend in chain. Power plant developers and systems integrators are the main beneficiaries, but investors and end users involved in power is limited. (2) the United States sunshine resources in places like California and sales price in “double high” which is to promote the ideal area. But domestic sales prices and negatively related to radiation resource, affecting plant yield. (3) over 85% of the United States resident owners of single-family homes and cities dominated by commercial housing residential, rural and relatively poor economy demand, Solarcity also limited mode of promotion in the country. (4) foreign funding costs low, slows yields attractive, home is not.

Overall, introducing leasing domestic power station operators in the financing model, on the financing of private enterprises in the field of distributed power to break through the bottleneck is of great significance. Solarcity’s success with United States special policies, power, resources, and the economic environment are inseparable, the pattern in the country temporarily to mimic, and brings more of a consideration of financing innovation, perfect to be policy and electricity pricing system.

Original title: profit-sharing financing lease or new trends of PV plants financing

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