This is your SolarWakeup for May 23rd, 2014

I have a pet peeve about ideas in solar that go about solving investor risk but end up totally missing the point. Yieldcos, REITs, and other financing vehicles do nothing about investor risk. In fact, the only way to solve for investor risk is to improve or enhance the offtaker credit. Residential funds do this by seeking the customer FICO scores, large projects look at the bond rating of the offtakers. Everyone else that is seeking to “credit score” commercial solar is simply putting lipstick on a pig. Yieldcos don’t lower risk for investors, PACE lowers risk. Full Disclosure: I co-founded Demeter Power, a company that offers 3rd party owned solar through PACE.

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Have a great day!

Yann