We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Solar Project Finance And Lender Underwriting
Solar project finance is a disciplined path to a term sheet, not a pitch deck exercise. Lenders fund solar assets when the file proves three things: revenue can be collected, construction can be completed on time and on budget, and cash can be controlled through enforceable accounts, covenants, and security.
This page is written for developers, sponsors, and project finance analysts who need lender-grade clarity on what solar project finance lenders actually require: bankable PPAs, interconnection evidence, EPC completion security, credible project finance modelling outputs (CFADS, DSCR, LLCR), and a diligence pack that can survive credit committee review.
Financely structures lender-ready packages and routes them to banks and private credit partners for decisioning. For our workflow and what we require before outreach, see How It Works and Procedure.
“Solar project finance” usually means funding a specific solar asset through a dedicated project company, often called an SPV (Special Purpose Vehicle). “Special purpose” matters because lenders want a ring-fenced borrower whose assets, contracts, bank accounts, and cash flows are not mixed with unrelated corporate risks.
The loan is underwritten primarily on the project’s ability to generate predictable cash flows and route those cash flows through controlled accounts. That is why you see terms like “cash waterfall,” “reserve accounts,” and “distribution lockup.” These are not legal decoration. They are the enforcement tools that keep the deal financeable.
Renewable energy project finance is the broader category. Solar sits inside it, but the underwriting logic is consistent across bankable renewable energy initiatives: contracted or defensible revenue, completion certainty, operational reliability, and controls that reduce leakage and surprises.
Solar lenders do not start with “how many megawatts.” They start with “how will cash be paid, and what happens if something goes wrong.” That is a revenue contract question.
A PPA (Power Purchase Agreement) is a long-term offtake contract that defines price, settlement, and payment obligations for delivered energy. A PPA matters because it can turn energy output into a contractual receivable that lenders can underwrite and monitor.
A project finance analyst reviewing a PPA-backed solar financing file will focus on offtaker credit, termination payments, step-in rights, change-in-law handling, curtailment treatment, metering and billing mechanics, assignment restrictions, and any credit support such as a letter of credit.
Merchant means revenue depends on market prices. Merchant exposure matters because it introduces price volatility, which can collapse DSCR and break covenants. Lenders can still fund merchant tails, but the structure usually tightens: more equity, heavier reserves, conservative price assumptions, and strict cash management.
Hybrid structures also exist, such as a contracted base with merchant upside. These can be financeable when the contracted portion alone can support debt sizing under downside cases.
“Bankable” is not a label. It is a file that answers lender questions with evidence. The scorecard below maps the core bankability factors to what lenders actually want to see in a solar project finance diligence pack.
| Bankability Factor | Why It Matters | Typical Evidence |
|---|---|---|
| Revenue Contract | Defines the repayment source and pricing logic | PPA, tariff terms, billing mechanics, credit support terms |
| Offtaker Credit | Weak payers create delayed collections and covenant stress | Financials, credit profile, parent support, payment security provisions |
| Interconnection Status | No grid access equals no revenue | Queue position, studies, executed agreements, milestone tracker |
| Permits And Land | Permit gaps block construction and COD | Land lease or title, permit matrix, conditions tracker |
| EPC Completion Certainty | Construction risk is the highest failure point | Fixed price, date certain, LDs, performance tests, security package |
| Resource And Yield | Production drives revenue and DSCR | Independent engineer inputs, P50 and P90, losses, degradation |
| O&M Plan | Availability and response time drive output stability | O&M contract, availability guarantees, spares plan, SLAs |
| Insurance Program | Transfers catastrophic and construction risks | Builder’s risk, DSU, property, liability, deductibles, endorsements |
| Cash Waterfall And Controls | Prevents leakage and enforces reserves | Account structure, DSRA logic, distribution lockups, reporting cadence |
| Project Finance Modelling Outputs | Debt sizing and covenants are model-driven | CFADS, DSCR and LLCR profiles, sensitivity set, covenant tests |
Completion certainty is the lender’s way of forcing “will this actually get built” into contract form. EPC means Engineering, Procurement, and Construction. The EPC contract matters because it assigns responsibility for delivery, schedule, and performance to a counterparty that can be held accountable.
Lenders usually want fixed price and date-certain delivery because cost overruns and schedule slippage are what destroy a deal’s economics. When you see “LDs,” that means liquidated damages, a pre-agreed remedy for delay or underperformance. LDs matter because lenders prefer defined consequences over litigation risk.
What lenders typically push for: fixed price EPC, date certain COD, delay LDs, performance LDs, clearly defined performance tests, limited carve-outs, and a security package. The security package can include parent support, performance bonds, or bank instruments depending on the market and contractor profile.
If your transaction includes broader security readiness and collateral controls, see All-Asset Lien Packages.
Interconnection is the technical and contractual path that allows the project to export energy to the grid. Interconnection matters because a project can be built perfectly and still fail financially if it cannot deliver power for sale.
A lender-grade file does not hand-wave interconnection. It shows queue position, study status, cost responsibilities for upgrades, key milestones, and what happens if timelines slip. Curtailment risk also needs explicit handling. Curtailment means the grid limits your ability to export, which reduces MWh sold and therefore reduces CFADS.
Lenders typically want curtailment assumptions reflected in the model and addressed in contract language where possible. If curtailment is ignored, your DSCR profile is often fictional.
Project finance modelling is not “a spreadsheet that looks busy.” Lenders read outputs. Outputs decide debt size, covenants, reserves, and pricing.
Debt sculpting means shaping the repayment schedule so debt service matches cash flow. Sculpting matters because solar cash flows can be seasonal and because construction-to-term facilities often have an early period where cash is not yet stabilized. A lender will accept sculpting when assumptions are conservative and controls are strong.
Lenders expect downside cases that mirror real failure modes: COD delay, higher capex, production underperformance, curtailment stress, O&M cost creep, and weaker merchant pricing if applicable. The purpose is not pessimism. The purpose is proving the deal does not collapse under plausible friction.
The capital stack is the full set of funding sources used to build and operate the solar asset. It matters because it sets cost of capital and determines how resilient the project is under downside cases.
Senior debt is typically first lien. First lien matters because it establishes priority in collateral and cash flows. Senior lenders usually require strict accounts, reserve requirements, and a covenant package that forces early warnings before default.
These layers can close a funding gap when senior debt is constrained by DSCR or leverage limits. The tradeoff is higher cost and intercreditor complexity. Intercreditor terms matter because they define enforcement rights, cure periods, and cash waterfall priority.
Sponsor equity is the risk buffer. Lenders read equity as alignment because it absorbs the first losses. Equity also matters for completion, because construction almost always has small surprises that must be funded quickly.
In some jurisdictions, tax and incentive frameworks introduce additional capital sources and documentation. The underwriting principles remain: enforceable revenue logic, completion certainty, and controls that protect senior repayment.
A lender-ready data room is organized the way credit committees think: contracts first, permits and grid next, engineering and operations next, then financial model and assumptions. If the room is a dumping ground, diligence drags and term sheets slip.
| Data Room Section | What to Include | Why Lenders Care |
|---|---|---|
| Corporate and SPV | Org chart, SPV docs, shareholder terms, KYC and KYB | Authority to sign, ownership clarity, governance controls |
| Land and Permits | Site control, leases or title, permit matrix, conditions tracker | Removes entitlement ambiguity and delay risk |
| Interconnection | Studies, agreements, upgrade scope, milestone tracker | Validates grid access and COD feasibility |
| Revenue Contract | PPA, tariff logic, billing mechanics, credit support terms | Defines the collection path that repays debt |
| EPC | Fixed price, schedule, LDs, performance tests, security | Completion certainty and cost control |
| O&M | O&M contract, availability guarantees, response SLAs, spares | Operational reliability and downtime management |
| Engineering | Resource and yield inputs, losses, degradation, key assumptions | Supports production and revenue projections |
| Insurance | Broker letter, policies, deductibles, endorsements | Risk transfer for construction and operations |
| Financial Model | Model, assumptions book, DSCR and LLCR profiles, sensitivities | Debt sizing, covenants, and downside survival proof |
Solar funding is a gated process. Each gate has a minimum viable package. Sponsors that skip gates do not save time. They create rework that shows up later when lenders request the missing pieces under deadline pressure.
You need evidence you can build at the site, a realistic interconnection pathway, and a cost baseline that can survive diligence. “Credible” means supported by vendor quotes, market benchmarks, and a contingency logic, not just a best-case number.
The contract stack is the set of agreements that allocate risk: PPA, EPC, O&M, interconnection agreements, land documents, and insurance. Risk allocation matters because lenders do not want the project company absorbing risks it cannot control.
This is where many renewable energy initiatives stall. Lenders want a coherent file: data room index, risk summary, model outputs, sensitivity set, and a proposed capital stack that is realistic. Outreach without a package creates slow, fragmented diligence and no term sheet momentum.
Financely runs submissions through a defined process. Review How It Works and Procedure to see the approach.
A term sheet becomes funding only when conditions precedent are satisfied. Conditions precedent matter because they are the lender’s final checklist: final contracts, final reports, account control documents, permits, and security perfection steps.
Most failures are predictable. They come from gaps in evidence, not from lack of “interest” from lenders. Below are high-frequency failure modes that a project finance analyst will flag quickly.
These are credible baseline resources for solar production logic and renewable market context. They are not lender approvals, but they are widely used in diligence and modelling workflows.
Financely operates as a transaction-led capital advisory desk. We build the underwriting package, structure the financing request, and route it to lenders and private credit partners for decisioning. We are not a lender, and we do not promise approvals. We control the quality of the file and the discipline of the process.
If you want the firm-level scope and what we handle, start at What We Do. If you want the submission workflow and what we require before outreach, see How It Works.
If you are pursuing solar project finance, construction-to-term solar financing, or renewable energy project finance funding, submit your project details and documents to receive a quote for underwriting and lender placement.
Submit Your DealThe fastest path is not outreach volume. It is file completeness. Lenders move when you present a coherent package that proves (1) revenue can be collected under a bankable PPA or defensible revenue substitute, (2) the EPC structure delivers completion certainty with enforceable remedies, (3) interconnection and permits are evidenced with milestones, and (4) the project finance modelling outputs show conservative DSCR and LLCR profiles that survive downside cases. When those elements are missing, the “process” becomes endless Q&A and the deal loses momentum.
A project finance analyst is checking whether the story is consistent across documents and numbers. They will compare the PPA terms to the revenue model, compare interconnection milestones to the schedule, compare EPC obligations to capex and COD assumptions, and test whether downside cases still meet covenants. They also focus on controls: cash waterfall, reserve accounts, reporting cadence, and the legal enforceability of step-in rights and security. A file that cannot reconcile its own assumptions is rarely financeable.
Lenders typically rely on CFADS, DSCR, and LLCR. CFADS matters because it is the cash that can actually pay debt after operating costs and required reserves. DSCR matters because it is the period-by-period payment test that drives distribution lockups and default triggers. LLCR matters because it measures overall repayment strength across the loan life. The model must also include covenants, reserves such as DSRA, and sensitivity sets that match real risk: COD delay, production underperformance, curtailment, capex overruns, and merchant pricing stress where applicable.
Yes, but it is harder and usually more expensive. Without a long-term PPA, the lender is underwriting market exposure or alternative contractual structures. That generally means lower leverage, stronger equity, heavier reserves, and more conservative downside cases. Some deals are financed with a contracted base and a merchant tail, but the contracted base usually needs to carry most of the debt sizing. If the merchant tail is doing the work, lenders tend to push back.
We package the transaction into a lender-grade underwriting file: a structured risk narrative, a data room index aligned to credit committee logic, a model output set that lenders can read quickly, and a proposed facility structure with controls. We then route the request to lenders and private credit partners for term sheets. If the deal is not financeable on realistic terms, you receive written blockers so you can correct the file rather than burn time on superficial outreach.
Solar project finance is won with evidence, not optimism: bankable revenue logic, interconnection clarity, completion certainty, and a model that survives downside cases without breaking covenants.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
To proceed,
request a quote
and receive indicative commercial terms. If you require guidance before engaging,
book a paid telephone consultation.
Security notice: we are aware of third parties using Financely’s name without authorization. Only emails sent from our official domains and communications through our portal are valid. Please verify any outreach before sharing documents or sending payments, and read our impersonation warning.
Email supportdesk@financely-group.com for general enquiries, press & partnership requests.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
Click
here to download our brochure. Email
supportdesk@financely-group.com for general enquiries.
