11 February 2013
With utility scale solar installations growing at a record pace, the number of acquisitions of operational solar plants is also increasing. In fact, more project acquisitions of solar projects took place in the first three quarters of 2012 than the total number of project acquisitions in any previous year. Financing of operational projects versus preconstruction projects has some discernible benefits for the investor and risk is mitigated as the track record of the plant becomes established and can be used to predict future performance. For the investor or lender to quantitatively assess the potential reduction in risk, the expected annual energy production of the plant should be reevaluated.