The Solar Energy Industries Association (SEIA) and the Solar Energy Finance Association (SEFA) have announced they are joining forces and forming a new entity under SEIA to support wide-scale, low-cost solar deployment through better access to investment capital. Under SEIA, the two entities will better serve their membership and act as a single voice and organizing force for current and potential solar developers, investors and lenders.
The associations will create the Solar Energy Finance Advisory Council (SEFAC), which will be used to leverage the insight of its participating members to expand and lower the cost of investment capital to meet the growing needs of the solar industry.
According to the announcement, specific actions will include the following:
- Expand the supply of tax equity from banks, corporations and other potential investors, which is a critical source of capital for solar project deployment;
- Open capital market opportunities through asset-backed securitizations, which are long-term debt and equity investments that provide solar developers a powerful way to raise low-cost capital;
- Reduce tension points in debt and tax equity, which can often complicate solar project finance; and
- Communicate the technical and financial performance of solar projects to improve understanding and confidence among investors.
“We are excited to combine with SEFA for the good of the solar industry,” says Tom Kimbis, interim president of SEIA. “Solar projects represent a high-quality source of long-term cash flows, making them great investment opportunities. Through this finance advisory council, we aim to lower the cost of capital and make solar even more cost-effective for residential, business and utility customers.”
“This is an important strategic move for us,” states Mary Rottman, president of SEFA. “Backed by the staff and resources from SEIA, we are very optimistic that we will achieve our mission of reducing the cost of capital and furthering growth in the solar industry.”
