Innovative Solar Systems (ISS), based in Asheville, N.C., has developed about 1 GW of solar farm projects in the state prior to expanding operations across the entire U.S. The latest group of solar farm projects approved in the state are a combination of 2-MW and 5-MW projects. Small to medium size investors prefer small projects, according to ISS CEO John Green, due to the smaller capital outlay, faster commissioning time and returns that range from 10% to 20% over the life of project.
North Carolina has been a leader in solar development for many reasons, including above-average tax credits and incentives that are offered in the state. It is quite common for the tax equity investor to fund a large portion of a solar farm cost making the returns quite attractive for the debt equity investor involved in each deal, according to Green.
“We have seen a whole new type of investor sucking up these solar farm projects due to the fact that a person or entity is able to structure deals in such a fashion where the purchase power agreements are offering the pure equity investor long term income streams, while the tax equity investor funds a large portion of the construction finance,” says Green.
Innovative Solar Systems
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