Funding Solar Projects: Capital Solutions from Concept to Operation
Funding Solar Projects: Capital Solutions from Concept to Operation
Solar development is capital-hungry but capital-friendly—once risk is packaged correctly. Sponsors who match funding type to project stage lock in lower costs and faster closings. Below we outline standard financing tracks for development, construction and operating phases, then explain how Financely delivers a full‐scope service stack.
Stage-by-Stage Funding Matrix
| Project Stage | Main Risks | Typical Capital Sources | Indicative Pricing |
|---|---|---|---|
| Early Development (site control, interconnect studies) |
Permitting, resource, offtake | Developer equity, seed funds, bridge loans | IRR 18–30 % or warrants |
| Late Development (PPA executed, EPC bids in) |
Final permits, financial close | Bridge loans, mezzanine notes, small tax-equity bridge | 10–16 % all-in |
| Construction | EPC cost overrun, schedule | Senior construction loan, letter-of-credit lines, sponsor equity | SOFR + 175–275 bp |
| Mechanical Completion / COD | Punch-list, performance | Tax equity, back-levered term loan | Leveraged IRR 6–9 % (after ITC) |
| Operational Portfolio | Merchant tail, refinance risk | Bond take-out, green securitisation, hold-co revolver | 4–7 % fixed or SOFR + 140–200 bp |
Choosing the Right Instrument
Developer Equity & Bridge Loans:
Expensive but nimble—ideal for studies, option payments and security deposits.
Construction Debt:
Drawn against EPC milestones; usually requires letters of credit to cover module supply and grid bonds.
Tax Equity:
Monetises the Investment Tax Credit and accelerated depreciation in the United States—20-40 % of total capital stack.
Back-Leverage Term Loan:
Senior debt behind tax equity, amortising on contracted cash flow.
Bond Refinance:
Portfolio-level green bonds free up sponsor equity for the next pipeline tranche.
Financely’s End-to-End Support
- Capital Strategy: We model multiple debt-equity paths, stress-test DSCR and negotiate covenant packages.
- Bank & Fund Syndication: Direct access to commercial banks, infrastructure funds and tax-equity investors.
- Letter-of-Credit Facilities: Bid, performance and interconnect LC lines sized to EPC contract triggers.
- Power-Price Hedging: Fixed-for-floating swaps or collars to stabilise merchant exposure.
- Refinance & Exit: Securitisation or sale once the project ramps, maximising sponsor return.
Developing or acquiring a solar asset? Send your financial model and permit status; our team will map the optimal capital stack and approach qualified lenders and tax-equity partners.
Submit Your Solar DealPricing ranges reflect Q2 2025 market levels for North American and OECD projects <200 MW. Actual terms depend on credit profile, offtake structure, equipment supply chain and policy incentives. Financely Group arranges financing through regulated partners and does not provide tax advice; sponsors should consult independent counsel.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
