SOLAR CAPITAL LEASE – 100% Project financing. No Capital Investment

SOLAR CAPITAL LEASE – 100% Project Financing


Date: April 13, 2013

Charleston, SC. – Solar Capital Leasing has recently introduced the Capital Equipment Lease that provides for 100% project financing for renewable energy projects in excess of $250,000. According to David Weiler, CEO, Solar Capital Leasing “this lease offers a unique and proprietary financing solution for municipalities, schools, non-profits, government and companies having an interest in developing multiple solar power installations in the small (50 kW) to medium (1 MW) size range”.

The funding program is available to qualified projects in selected markets including Georgia, Massachusetts, Connecticut, New York, New Jersey, Rhode Island, District of Columbia, Maryland, Delaware, North Carolina and Tennessee. Apply Online.

The Solar Capital Lease is underwritten by US based Fortune 500 companies having extensive experience in financing renewable energy projects in the US and selected Internationally markets (Canada, Caribbean). The program provides both the construction and take-out financing for terms up to 30 years and at competitive rates i.e. 3.5% – 5% range depending on the credit worthiness of the project host.

Program Features:

  • 100% financing of renewable energy project costs
  • Transactions of $250, 000 with no upper limit
  • Construction and take-out financing for terms of 8 to 30 years depending on the project
  • Roof-top and ground mounted systems
  • Small to Medium sized Municipal and School projects may be accommodated
  • Tax benefits, depreciation, stay with the project developer
  • Investment grade entity in the structure

Prior to the introduction of the Solar Capital Lease project developers commonly found project  financing difficult due to a number of factors.

Mr. Weiler stated “Renewable energy projects are a unique asset where the future market value of the underlying asset collateral is difficult to establish and cash flows are difficult to confirm.  Additionally project developers often lack access to equity funds i.e. skin in the game to satisfy the bank and lenders can only offer high coupon rates and limited amortization terms which puts additional economic pressure on the business case of the project”.


Commercial banks do not typically provide a viable source of project funding due to their attachment to long-standing underwriting practices of focusing on the value of the underlying asset, imposition of debt coverage ratios and demand for developer equity in the capital stack.

Project financing has typically been combined with some component of debt financing and private investor equity contribution, with the private investor’s motives driven primarily by tax-related benefits. The repetitive need to obtain and package Bank debt with private investor capital for each project has proven to be a significant impediment to the ability of the developer to fund new projects.

In light of these challenges, the team looked to practices already long in-place in the commercial property structured financing markets to provide a solution.

The approach relies on the credit quality of the project income stream, with virtually no emphasis on the nature of the renewable energy technology or physical assets. Solar Capital will provide 100% project cost debt financing, with extended amortizations out to 25 or even 30 years.

Finally; the Solar Capital Fund does not seek to obtain any portion of project tax benefits. This allows the project developer to capture, or barter, these benefits to their own gain.

In summary – the Solar Capital Lease Program is driven by the credit quality of the transaction lessee and transactional documents that provide bond investors with default protection.

For more information contact:


Solar Capital Leasing


Tel: 843-576-0112 x 121

Solar Capital Leasing 

Solar Capital Leasing is a financial services and project development company providing renewable energy solutions through photovoltaic (“PV”), solar thermal and wind technologies.

The company levers its energy knowledge expertise, investment banking expertise and procurement processes to help business, municipalities, schools, non-profits and government maximize energy savings and reduce carbon emissions.



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