Solar Construction Loan Advisory
A solar construction loan funds the build of a project from notice to proceed through commercial operation. Lenders approve it when the budget, the EPC contract, the schedule and the takeout into term debt or tax equity are clear.
FG Capital Advisors prepares the construction financing package and arranges construction and construction to term loans through third party lenders.
Start Client IntakeWho This Is For
Utility Scale Developers
Developers approaching notice to proceed on ground mounted solar or hybrid projects.
Commercial and Industrial Sponsors
Sponsors building rooftop, carport or ground mounted solar for business offtakers.
Community Solar Developers
Developers who need construction capital before subscriber revenue starts.
EPC Backed Sponsors
Sponsors with a contractor partner who need non-recourse or limited recourse construction debt.
What FG Capital Advisors Arranges
Budget and Contract Review
Review of the EPC contract, module and equipment supply, contingency and schedule from a lender perspective.
Facility Design
Draw mechanics, conditions precedent, independent engineer sign off and the conversion to term debt.
Takeout Planning
Alignment of the construction loan with term debt, tax equity or tax credit transfer so the exit is defined.
Lender Placement
Approach to construction lenders, comparison of term sheets and coordination of diligence.
This service is part of our Solar Project Finance Advisory work, which covers every stage of solar and renewable energy financing.
How It Works
- You send the project details through the client intake form, including capacity, stage, EPC status, offtake and the capital you need.
- We review the budget, contracts and schedule and send a written list of the gaps that would block a construction loan.
- We build or audit the model, set out the sources and uses and prepare the lender package.
- We approach construction lenders, compare term sheets and coordinate diligence to close and first draw.
What Lenders and Investors Look For
Fixed Price EPC
An EPC contract with a clear price, schedule, liquidated damages and performance guarantees.
Offtake in Place
A signed PPA or other revenue contract, or a credible path to one before conversion.
Sponsor Equity
Equity committed for its share of the budget and any cost overruns.
Permits and Grid
Permits needed to build and an executed interconnection agreement.
Documents to Send
Project
Site control, permits, interconnection agreement and construction schedule.
Contracts
EPC contract or term sheet, equipment supply agreements and PPA.
Technical
Energy yield assessment and any independent engineer report.
Financial
Budget with contingency, sources and uses, financial model and equity commitments.
Related Services and Guides
Frequently Asked Questions
What is a construction to term loan?
It is a single facility that funds construction and then converts into a term loan once the project reaches commercial operation and meets agreed tests.
Do construction lenders require a signed PPA?
Most do, or they want a clear and near term path to one. Merchant or partly contracted projects face tighter terms.
Who checks the draws?
Lenders usually appoint an independent engineer who confirms progress and costs before each draw is released.
How do I start?
Send the budget, EPC terms, PPA and model through the client intake form.
Start Your Client Intake
Send the project through our client intake form with the details listed above. We review every submission and reply in writing with the scope, fee and next steps.
Start Client IntakeLenders and investors make their own credit and investment decisions. Terms and approval depend on their diligence, and funding is not guaranteed.
