The funding options available for small & mid sized renewable energy Developers and EPCs:
In this article, we try to summarize the financing options available for ambitious developers & EPCs aspiring to grow their business & aiming to take advantage of the current renewable energy boom.
By optimizing their capital sources from the list below, small & mid sized developers & EPCs could build sustainable balance sheets that maximizes their long-term equity value (e.g. for a potential exit or retirement) without cannibalizing their short-term cash flow needs.
Generally, raising capital from the list above allows developers/EPCs to generate higher fees/profits, compared to selling projects to third party developers/IPPs at an early stage or to utilizing a milestone payment plan.
Raising capital also provides an opportunity to build a balance sheet that further enhances the company’s valuation, its ability to raise cheaper capital (backed by the balance sheet), and participate in larger projects.