You can also choose to partner with a solar financier to access capital for your project. If you decide to work with a financier as you develop your solar project, make sure you work with an established one. If you partner with an inexperienced financier, they may not be able to complete your project. When you begin seeking a financing partner, you could receive multiple offers from commercial solar financing companies. Once you receive these offers, you’ll need to distinguish between the inexperienced investors and the experienced ones. Here are some topics you can inquire about to separate the pros from the amateurs:
Where Does Their Capital Come From?
Do your research and find out how long this financier has been around. Then, if you decide to continue the conversation, ask them about who supplies their capital. A more established financing company can give you a detailed answer to this question. They should be able to explain how they will finance each stage of the project.
How Many Previous Solar Projects Have They Developed and Financed?
This question is an important determining factor when you select a financier. An established financing company can provide proof of dozens or even hundreds of solar panel systems that they’ve financed. An inexperienced financing company will sidestep this question and show you all of the projects that they have in their pipeline. When they show you a pipeline, they’re showing you projects that they have signed on, but might not be able to complete because they lack the capital to do so.