Funding solar energy projects and financing developments of sustainable energy generation have now become a sweet spot for green investors and ESG leaders. In order to create incentives for funding renewable energy projects, some European nations that have fixed a specific tariff for solar power generated electricity. Due to this and other incentives, there is a possibility of high and steady investor returs in this sector as well as other renewable energy industries.
Why Kapok Capital is a Leading Name in Solar Fundraising?
Kapok Capital is an experienced corporate finance advisor in solar fundraising and arranging debt for financing solar power projects in Europe, Africa, Asia-Pacific and other corners of the world. Solar project funding is an important part of any solar project development, particularly as the cost of capital can greatly affect investor returns.
Most solar generation projects are funded through a combination of equity and debt. Capital structures differ according to the characteristics of the solar project. We at Kapok Capital focus on funding for solar projects that are near “shovel ready.”
Solar Project Investment Capital
We structure the processof solar fundraising around the objectives of our client. Our team can find a buyer for aproject interest if an investor wants to exit. Kapok Capital mainly focuses on the following investment options for fundraising forsolar projects:
Development Equity for the funding of the Pre RTB costs of the projects in the pipeline
Construction Equity that includes funding of the 20 to 25% of the construction budget
DebtFinanceto make up the balance of the solar project capital structure.
Clear Process of Fundraising
Our process of fundraising is clearand straightforward. We share transparent financial models withpotentialinvestors of the projects serve as a basis for negotiations. Clear processguidelines are also providedso that there is no confusion between the investors. Many solar developers and investors are not willing to invest in the project until it reaches a ready-to-build (RTB) stage. Depending on the project, Kapok Capital can also assist with this problem by sourcingdevelopment equity for solar projects.
If you have a well-structured solar energy project that is in need of funding, then please contact us to discuss your requirements.