Is securitization worthwhile for the solar sector? How can securitization be applied more broadly to renewable energy projects to provide capital needed to support a rapidly growing market?
Is securitization worthwhile for the solar sector? How can securitization be applied more broadly to renewable energy projects to provide capital needed to support a rapidly growing market?
With the increased demand for solar energy, there was an increased need for financial resources to support the growth. This case explores DSD Solar and its process to assemble Osprey I, a securitization of solar assets. While traditional financing structures were available, securitization, while new, was able to address the challenges of the solar energy industry, including tax incentives. What are the challenges and benefits of securitization? What lessons were learned from Osprey I? Would DSD explore this option again?
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