Solar Infrastructure

What Due Diligence Checklist Applies to Solar Infrastructure Investment? What due diligence checklist applies to solar infrastructure investment? For institutional investors and infrastructure fund managers evaluating solar assets, the answer spans five core domains: technical asset quality, counterparty creditworthiness, regulatory and permitting compliance, revenue structure and contract terms, and portfolio-level risk diversification. Each domain carries…

How Do Infrastructure Funds Allocate Capital to Solar Assets? How do infrastructure funds allocate capital to solar assets? The answer has shifted significantly over the past decade. Infrastructure funds traditionally allocated capital to solar through large utility-scale project finance – backing ground-mounted plants with 50 MW or more of capacity, secured by long-term power purchase…

What Is a Realistic ROE for Solar Infrastructure Funds in Europe? What is a realistic ROE for solar infrastructure funds in Europe? For most institutional-grade solar infrastructure funds operating across the continent, a realistic return on equity falls in the range of 6% to 12%, depending on asset structure, contract duration, geography, and whether the…

What is a Power Purchase Agreement (PPA) and How Does It Work? What is a Power Purchase Agreement (PPA) and how does it work? A PPA is a long-term contract between an electricity generator and a buyer – typically a corporate offtaker, utility, or energy trader – that sets the terms for the sale of…

What Is the Counterparty Risk in a Long-Term Solar PPA? What is the counterparty risk in a long-term solar PPA? It is the risk that one party to a power purchase agreement – typically the electricity offtaker – fails to meet its contractual obligations over the duration of the contract. In solar PPAs spanning 10…

How Does a Solar Asset Generate Returns for Equity Investors? How does a solar asset generate returns for equity investors? At its core, a solar installation generates returns through a combination of contracted electricity revenues, long-term capital appreciation, and predictable operating cashflows that compound over the asset’s useful life – typically 25 to 30 years….

What Is the Difference Between Project IRR and Equity IRR in Solar? What is the difference between project IRR and equity IRR in solar? Project IRR measures the unlevered return generated by a solar asset based on its total capital investment, while equity IRR measures the return specifically earned by equity investors after accounting for…