When you're a homeowner who wants to invest in placing solar panels on their roof, you either float the capital upfront or you finance with the solar company you choose to work with. The same options are available for commercial and industrial (C&I) clients who want to install a solar system at their place of business with the addition of a third option known as third-party ownership: an investor may also finance the project and ultimately own the system, while the business or corporation signs a contract to purchase the electricity produced from the solar project instead of owning the equipment.
Investors in commercial and industrial (C&I) solar projects look for projects that;
1. Have the right tax credit structure and return profile, while passing ESG investment diversity tests,
2. Have a creditworthy offtaker (either investment grade, or with strong historical financials),
3. Use bankable or "Tier-1" equipment, and
4. Can be built correctly and on time.