Late last year, kWh Analytics released a report titled 2020 Solar Risk Assessment suggesting that Recent assessments of the solar industry’s pre-construction production estimates have found evidence of “an industry wide bias towards aggressive predictions,” noting that “when a typical solar project performs at the official “P90, equity cash yield drops by 50%.” This revelation has the potential to impact cash flows across the industry, as these over optimistic assumptions are netting a measured underperformance of about 2% on P50 revenue.
Today, we’ll offer you the opportunity to learn from three highly experienced solar experts on the past, present and future of solar project financing.
- Heidi Larson, ICF International
- Hao Shen, kWh Analytics
- Skip Dise, Clean Power Research
Today we will touch on:
- How to know what your solar project’s really worth
- What does Bankability really mean?
- What’s the difference between common solar finance terms like p50 and p90
- How does Turning dials on the financial model actually affect the overall project outcomes
- and what data does or perhaps should be going into those models to ensure we are not overshooting our valuations?
Are there underperforming assets in your portfolio? If you’re a project owner, You’re likely bleeding equity and you don’t even know it. As one of the guests says, “All models are wrong – some models are useful”.
I hope today you learn some of the critical elements to success and how we need to evolve as an industry.