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Scaling Solutions




The solar energy industry has experienced rapid growth in recent years, fueled by both the increasing demand for sustainable energy sources and financial incentives like the Inflation Reduction Act. However, solar developers often encounter a significant pain point: their businesses outgrow the financing capacity of the local and regional banks that provided their initial capital. The mismatch between the pace of project development and the availability of financing is causing developers to focus on shopping for financing rather than developing pipeline, which is hindering the industry's overall progress and impacting the developers’ bottom line. 

 

For example, one solar developer we’ve spoken with is expanding nationally and its current pipeline is more than twice the MW in its current portfolio.  This developer is struggling to find new financing partners that can scale with it. We’ve also recently spoken with another developer in search of new financing for a similar reason: its growing portfolio of projects is approaching the legal lending limit from a regional bank to a single sponsor. Without sufficient capital reserves or access to alternative funding sources, developers may be forced to accept less favorable financing terms from larger banks. 

 

Energetic Capital offers financing solutions to overcome challenges like these. Energetic’s loans can start as low as $5M and scale to $50M or even $100M over time, empowering developers to scale with a single source of capital while owning their projects. We offer time-based facility structures that allow for flexible draw periods with terms that can improve with time and scale.  Energetic Capital will work with developers to ensure that they can grow their portfolio without having to sell projects for the liquidity needed to scale. 

 

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