When we are talking about the possible financing options for utility scale solar systems, it is important to have an idea about what utility scale solar system refers to. This idea is going to better prepare you to assimilate the details pertaining to the financing options.
The utility scale solar system
A utility scale solar system refers to a large scale generation of social electricity which can be utilized for several purposes. So, in this form of solar facility, the solar power generated is usually fed into a grid and this, in turn, is used to supply energy to different utility appliances and more.
There are several utility scale power plants which are present in the US. As per statistics, as much as 30 GW of utility scale photovoltaic power plants were in their development phase in the USA alone back in 2015. There are a lot of plans to have energy obtained using zero carbon sources in the near future to prolong the sustainable living conditions on earth.
So, now that you know that utility scale solar panels refer to massive generation of power and electricity, it is quite evident that the installation expense is going to be whopping too. So, it is natural to look for a sound financing system. Let us delve into that now!
Private bank financing
Of course, it is only the banks that can help you with financing of such massive large investment projects. There are several private banks that show interest in such forms of financing. The Live Oak Bank for instance financed over $500MM to several solar project developers in 2017-18. Of course, the process may be long, and you will need to pre-qualify for it and discuss the project model in thorough details.
There are a few companies that agree to offer third party solar PPA (power purchase agreement) as a means of financing the projects. Of course, one needs to go over the details meticulously and find out if the pricing model seems to suit their requirements.
If you are running a non-profit utility, you can also benefit from the federal 30% solar investment tax credit as well.
There is no denying the fact that owning the plant is one of the best ways to make things work. However, you would surely need to qualify for a loan. If your project is big enough, some of the top banks might be interested in sanctioning your loan. The key here is to have the right documents and the best credit history and you should be all set.