Solar PV Revenue Securitization
Solar PV Revenue Securitization
Lock in tomorrow’s cash flows and recycle equity today. We package contracted solar revenues into a clean, investor-friendly structure and place the paper with buyers who understand PPAs, FiTs, and CfDs. You get upfront proceeds, cheaper capital, and a repeatable template for scale.
Developers, IPPs, and C&I aggregators who want to free up equity, shrink weighted cost of capital, and fund new builds without waiting for payback periods.
What we securitize
| Cash flow type | Source | Notes |
|---|---|---|
| PPA receivables | Corporate, utility, or municipal offtakers | Fixed or indexed price; take-or-pay or pay-as-produced |
| Feed-in tariffs (FiT) | Government-backed tariff schemes | Scheme terms and step-downs mapped to cash flow |
| Contracts for Difference (CfD) | Strike/reference price mechanisms | Settlement statements feed the waterfall |
| Green certificates / incentives | RECs, GoOs, or similar | Only where eligibility and offtake are stable |
| Merchant tail (optional) | Spot/forward power sales | Often carved out or capped; hedged where required |
Structure at a glance
| Element | How we set it | Why it matters |
|---|---|---|
| SPV & true sale | Originator transfers receivables to an SPV | Bankruptcy remote cash flows; clearer risk for investors |
| Tranching | Senior / mezzanine (and equity if kept) | Cheaper senior funding; flexible leverage |
| Cash waterfall | Collections → O&M → insurance → DSRA → fees → interest → principal → residual | Protects service and debt first; reduces surprises |
| Servicing | Primary + back-up servicer with data feeds | Continuity if operator changes |
| Hedging (if needed) | Fix or cap merchant exposure and indexed PPAs | Smoother coverage ratios |
| Reporting | Monthly performance; P50/P90 comparisons | Transparent tracking for investors and lenders |
Credit features we can add
| Feature | Purpose | Example |
|---|---|---|
| Overcollateralization | Extra cushion for senior notes | Advance rate haircut on projected cash flows |
| Debt Service Reserve (DSRA) | Cover short-term dips | 3–6 months interest (and O&M if required) |
| Performance guarantees | Reduce production variance | EPC or O&M guarantees; panel warranties |
| Insurance package | Protect cash flows | All-risks, BI/DSU, and revenue shortfall where available |
| Trigger grid | Early warning and actions | DSCR/P90 tests; step-up, sweep, or amortization |
Eligibility filters (straight talk)
| Topic | Baseline |
|---|---|
| Offtaker quality | Investment-grade or proven payment record; limit single-name exposure |
| Contract tenor | Remaining life supports target note tenor with cushion |
| Asset data | At least 12 months of production; metered data preferred; P50/P90/P95 available |
| O&M | Named operator with track record; spare parts plan; inverter strategy |
| Jurisdiction | Bankable contracts and enforceable security; stable settlement process |
Data & documents we’ll ask for up front
| Category | Examples |
|---|---|
| Commercial | PPA/FiT/CfD contracts, pricing addenda, step-downs, acceptance of curtailment rules |
| Technical | As-built, single line diagrams, inverter list, PR/availability reports |
| Performance | Hourly/daily meter data, irradiance data, P50/P90/P95 studies |
| Counterparty | OfFtaker credit package; payment history and settlement statements |
| Insurance & O&M | Policies, warranties, O&M agreement, spare parts plan |
| Corporate | SPV structure, KYC, permits, intercreditor details (if any) |
Process & timeline
| Phase | What happens | Output | Indicative timing |
|---|---|---|---|
| 1) Screening | Quick read on contracts, data, and offtakers | Go/No-Go + checklist | 5 business days |
| 2) Structuring & underwriting | Cash model, eligibility, advance rates, triggers | Term sheet; investor pack | 2–3 weeks from full data |
| 3) Distribution | Targeted investors; Q&A; price talk | Soft orders / indications | 2–3 weeks |
| 4) Docs & close | SPV setup, sale agreement, servicing, accounts | Signed docs; funds flow | 2–4 weeks |
Total: ~6–10 weeks. Portfolios with clean data go faster. New builds add time until COD data stabilizes.
Investor appetite
| Investor | What they like | Typical ask |
|---|---|---|
| Insurance / pension | Long, stable cash flows with triggers | Senior-only, strong DSCR, simple covenants |
| ABS funds | Shorter tenors; higher carry | Mezzanine with thicker enhancement |
| Banks | Warehousing or bilateral seniors | Clear true sale; tight reporting |
Common obstacles & how we fix them
| Obstacle | Fix |
|---|---|
| Short operating history | Blend with seasoned assets; use conservative P90 and higher DSRA |
| Merchant exposure too high | Cap or strip merchant tail; add hedge or keep it outside the SPV |
| OfFtaker concentration | Set limits; tranche exposure; add T&C step-ups |
| Data gaps | Independent data loggers; backfill via utility settlement statements |
| Operator risk | Back-up servicer; O&M step-in rights; minimum availability tests |
Off-balance sheet treatment may be possible where receivables meet derecognition tests (e.g., IFRS 9 / ASC 860). Green or sustainability labels may be available if your data supports them. We coordinate with your counsel.
Ready to turn contracted solar revenues into upfront cash? Send your PPA/FiT/CfD summaries, meter data, and offtaker list. We’ll respond with a screening verdict and next steps.
Request a ProposalFinancely Group acts as an advisor and arranger. We are not a lender. All work is subject to underwriting, KYC/AML, sanctions screening, and a signed engagement. Terms, pricing, and timelines are indicative and depend on data quality, counterparties, and market conditions. No guarantees are offered.
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.
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