05 Apr CREPN #138 – Solar Energy Investment Opportunity with Bryan Birsic
Posted at 08:00h
in Podcast
Solar Energy is now a legitimate alternative to fossil fuels providing the opportunity for users to reduce their energy cost. [x_audio_embed][/x_audio_embed] The financing of small to medium solar energy projects has been challenged, until now. Bryan Birsic combined his finance background and technology to co-create the solar energy financing platform Wunder Capital.
Solar Energy Today
Solar Energy has come so far since the 1970’s. More than just a nice idea to save the planet, today’s solar energy can produce enough power to more than replace a commercial buildings energy needs. An additional benefit is that the product is warranted for 25 years to produce at least 80% of what it did when initially installed. While this may be enough for the greenest property owner to convert, for most buyers, it’s about the money. For most projects, the opportunity to save 15% on their energy bill is what drives property owners to make the move to solar. Unfortunately, traditional financing is not as receptive to small and medium size projects.Financing for Solar Energy Projects
Banks fundamentally want to know they will get paid back. Decisions to lend are based on the understanding of the borrower and what the money will be used for. That’s underwriting. For large projects with credit rated borrowers, there are plenty of lenders willing to lend on the project. The loan is large enough to support the layers of fees for traditional underwriting. For small projects, there are two hurdles for financing.- Borrowers rarely have a credit rating for banks to use.
- Small project do not generate enough revenue for the bank.