Monday, August 17, 2015

Solar financing trend moving from leases to loans

Today's Utility Dive covers solar financing and the trend from third party leases (TPO) to direct loans in an article by Herman K. Trabish, entitled "Why Solar Financing is Moving From Leases to Loans."

The article touches on a point Marco Mangelsdorf and I made in our opinion piece on the TPO's business model being highly reliant on subsidies and are typically uncompetitive because the barriers to entry are so high.  Are we financing and marketing a new energy paradigm that creates winners and losers rather than a energy system that supports the public good?  We need to "makaala" or be watchful of how the financial markets are influencing the redesign of our electric system.  Let's not forget the desire for quick profits and "innovative" financing that drove the nation into a financial crisis.

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