Public Commentary: This briefing targets project sponsors, lenders, and institutional investors only. It is neither legal advice nor an offer to arrange funding.
Global Solar PV Project Financing — Structured Capital Solutions & Execution Playbook
Solar build-out demands capital that dovetails with construction milestones, tax incentives, and long-dated power-sale contracts. FG Capital Advisors fills that gap. We place construction loans, bridge facilities, mezzanine tranches, and tax-equity under one coordinated mandate—so developers break ground on time and investors lock in predictable cash yield. Below is the step-by-step playbook our team follows to carry a project from data-room launch to notice-to-proceed.
Guide Navigation
1. Transaction Workflow
- Mandate: Sponsor grants FG Capital exclusivity; we circulate a teaser to pre-cleared lenders and tax-equity investors.
- Indicative Terms: Within 10–15 days we lock pricing bands for senior debt (SOFR/EURIBOR + margin), mezzanine, and tax credit monetisation.
- Term-Sheet Round: Draft credit term sheet plus tax-equity LOI, align covenants with EPC timeline and PPA start date.
- Diligence & Modelling: Independent engineer, resource report, insurance advisor, and legal counsel feed comments into the financial model.
- Financial Close: Execute credit agreement, intercreditor deed, partnership flip or credit-transfer documents, and fund the first draw.
2. Credit Underwriting Sequence
| Stage | Verification Focus | Typical Tools |
|---|---|---|
| Counterparty KYC | UBO, sanctions screening, track record | World-Check, audited accounts |
| Resource Study | Irradiance data, P50/P90 output | DNV, TÜV SÜD, UL Renewables |
| PPA & Offtaker Review | Credit profile, termination provisions, change-in-law | S&P reports; offtaker financials |
| EPC & Equipment | Balance-sheet strength, liquidated damages, module warranties | BloombergNEF tier-1 list; legal counsel redline |
| Insurance Coverage | CAR, delay-in-start-up, O&M, cyber | Broker placement confirmation |
| Legal Opinions | Security perfection, tax status, land title | Local counsel; title company |
3. Legal & Tax Framework
The capital stack rests on three pillars:
- Security Package: First-ranking mortgage over land or leasehold interests, assignment of the PPA, and share pledge of the project company.
- Tax Credit Rules: US IRA 2022 transferable ITC/PTC; UK and EU CfD regimes; local depreciation incentives in LATAM and Asia-Pac.
- Intercreditor Coordination: Common terms deed fixes waterfall order and step-in rights between debt, mezzanine, and tax-equity investors.
When sites, governing law, and offtaker domicile diverge, FG Capital layers an English-law common terms deed over local security filings to preserve enforcement strength and simplify syndication.
4. Core Documents & Agreements
- Credit Agreement: Construction plus term loan; sculpted amortisation tied to P50 cash flow.
- Partnership Flip / Credit-Transfer Agreement: Monetises ITC or PTC; bridge loan fills timing gap until tax-equity funding.
- Intercreditor Deed: Defines voting thresholds, cure periods, and cash waterfall.
- EPC & O&M Contracts: Fixed-price, date-certain; O&M includes spare-parts inventory and performance ratio covenants.
- Security Filings: UCC-1, chattel mortgage, or civil-law pledge; plus direct assignment of key permits.
5. Risk Controls & Best Practice
- Lock module and inverter pricing with parent guarantees or surety bonds at EPC signing.
- Index debt service cover ratio (DSCR) triggers to P90 output to withstand low-irradiance years.
- Place delay-in-start-up insurance with minimum 12-month tenor to offset construction slippage.
- Run cyber-intrusion drills on SCADA systems before energisation.
- Track supplier ESG performance; many lenders now bake ESG-linked margin ratchets into the loan grid.
Next Step
Secure tailored financing terms for your next solar array. Contact FG Capital Advisors for an indicative term sheet, detailed diligence checklist, and timetable to financial close.
This guide is informational. Independent legal, tax, and technical advice is recommended before entering any project-finance transaction.
