BACK TO OWNERSHIP IN SOLAR

Solar Monetization Option Challenges Third-Party Ownership Assumptions

Mark Del Franco, April 17, 2014 (Solar Industry)

“While third-party ownership (TPO) represents much of the growth in residential photovoltaic installations, several factors may be starting to inject a few new wrinkles into the home solar market…[In the current third-party model, solar providers] own, maintain and insure solar panels on a homeowner's roof. Homeowners switch to solar without the high upfront cost, avoid the responsibilities of ownership and save money on electricity bills…[M]ore than $3 billion in project financing has been raised since SolarCity and Morgan Stanley closed the first residential tax equity portfolio financing in the U.S. in 2008…[But in] an emerging scenario, the homeowner - not the solar company - owns the PV system and typically signs a maintenance and service contract with an electrical contractor…The homeowner is able to fully monetize the tax credits on a dollar-for-dollar basis…[and some financial players] are deploying debt products in an effort to shift industry focus away from TPO…” click here for more

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