Solar Securitization: Leveraging Alternative Financing Without Jeopardizing Existing Investor Tax Breaks

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE webinar with Q&A


Conducted on Thursday, June 18, 2020

Recorded event now available

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Program Materials

This CLE webinar will discuss solar securitization, examining its role in solar financing and challenges to anticipate. The panel will guide counsel on leveraging solar securitization as an alternative financing tool while protecting investor tax benefits.

Description

Continued growth in the solar industry depends on its access to capital. One of the most innovative ways that solar companies have been using to access capital is through the securitization market.

Solar's growth has been propelled by the use of a third-party financing model where solar systems are owned by third parties who lease them or provide power to customers under long-term leases and power purchase agreements.

Both models are a good fit for securitization. Securitization is an emerging strategy for solar financing that gives developers access to capital markets to get favorable financing opportunities. Investors and customers also benefit from solar securitization.

The securitization of solar assets can play a crucial role in meeting the rising demand for solar financing. However, securitization must be structured to avoid jeopardizing the tax benefits in the underlying tax equity transactions while satisfying the requirements of the securitization market.

Listen as our authoritative panel examines the role of securitization for solar transactions, and provides guidance for how these deals are being structured and what to expect in the markets in 2020 and beyond.

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Outline

  1. Role of securitization in financing solar transactions
  2. Basic terms
  3. Key requirements
  4. Basic securitizations without tax equity
  5. Combining securitizations with tax equity
    1. Inverted leases
    2. Flip partnerships
  6. Asset and structure risks
  7. Tax insurance
  8. The future of solar securitizations

Benefits

The panel will review these and other key issues:

  • What role is securitization playing in financing solar lease models?
  • What are some of the structural challenges in securitizing solar assets?
  • What transaction structures are emerging in the securitization space to address non-residential solar assets?
  • How are strategic alliances between sponsors, loan originators and securitization market players changing the market?
  • What are the risks associated with solar securitization? How are they being mitigated? What role can tax insurance play?

Faculty

Lowder, Darin
Darin Lowder

Partner
Foley & Lardner

Mr. Lowder is a partner and member of the firm’s Finance Practice. Although his practice extends to all aspects...  |  Read More

Reisler, Marc
Marc S. Reisler

Principal
Sive Paget & Riesel

Mr. Reisler is a Principal at Sive, Paget & Riesel P.C. He regularly works on solar, storage, wind, geothermal and...  |  Read More

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