John Marciano Authors Article for Solar Industry Magazine on Financing Changes in Distributed Generation
Solar Industry has published “Adapting To DG Project Financing Changes,” an article written by John Marciano, a partner in the global project finance practice at Akin Gump. Partner Ed Zaelke, who heads the practice, contributed to the article.
Marciano writes, “The financial picture for distributed solar projects is in the midst of a substantial evolution.” He notes that with deals getting more complex, transactions involving more players and total revenue from a project decreasing due to falling power off-take prices, there are some considerations to take in order to adapt:
- “Consider equity participants that can buy into a developer’s cashflow stream at a lower weighted average cost of capital.”
- “Sloppy project documents will sour the economics of an otherwise good project. Make sure you have a crisp site lease and off-take agreement.”
- “Recognize political risk on the horizon,” and don’t get blindsided by changes in the law.