|Banks want to assess how risky the project is
The riskier the project the less likely they will finance
A bankable project is one that banks are ready to finance
What constitutes bankability?
- Many things:
- Historical data on similar projects
- Companies involved (panels, inverters, trackers, installers, etc…)
- Maintenance cost/requirements
- Risk Mitigation Plans (Warranty, Insurance)
Banks are looking for key areas:
- Contractor building the project
- Procurement methods
- Payment terms
- Cost of goods
- Construction time (determines repayment starts)
- Performance (Key variable in loan calculation!)
- Energy Yield, Reliability
- Design risk (generally stated warranties from all suppliers)
- Security (fenced areas, public areas, theft, etc…)
Banks do not want to see data on one module.
- Most installations have multiple modules connected in series
- It only takes one module to bring down one array.
- PPM problems are a big issue for a power plant
- Banks don’t care about one or two modules. They want to see a lot of modules tested under the same condition they will be used.
- Long term data is KEY!
- Projects are financed for a long period of time.
- Panels are guaranteed for 25 years.
- 2-3 energy yield data is acceptable by banks
- Less than 1 year is considered HIGH RISK