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Title: Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs

Abstract

The technical report discusses how R and D efforts focused on removing perceived risk from cash flows to investors have the potential to lower the cost of capital and increase the amount of leverage in a solar project. It also discusses how creating business efficiencies that allow financing transactions to occur more quickly with less effort can reduce the upfront costs associated with arranging financing for a solar project or group of projects. The paper then assesses the impact that these R and D activities might have on the volatility of PV asset cash flows and asset value, as well as the upfront costs of arranging a financial transaction. Finally, we insert these assumptions into financial models to analyze their impacts on the cost of capital for equity and debt investors, project leverage, and upfront financial transaction costs.

Authors:
 [1];  [1];  [2]
  1. National Renewable Energy Laboratory (NREL), Golden, CO (United States)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S)
OSTI Identifier:
1432188
Report Number(s):
NREL/TP-6A20-70939
DOE Contract Number:  
AC36-08GO28308
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; finance; PV; solar; cost of capital; equity; debt; leverage; risk; volatility; transaction costs; research and development; CAPM; WACC; LCOE

Citation Formats

Feldman, David J., Margolis, Robert M., and Jones-Albertus, Rebecca. Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs. United States: N. p., 2018. Web. doi:10.2172/1432188.
Feldman, David J., Margolis, Robert M., & Jones-Albertus, Rebecca. Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs. United States. doi:10.2172/1432188.
Feldman, David J., Margolis, Robert M., and Jones-Albertus, Rebecca. Mon . "Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs". United States. doi:10.2172/1432188. https://www.osti.gov/servlets/purl/1432188.
@article{osti_1432188,
title = {Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs},
author = {Feldman, David J. and Margolis, Robert M. and Jones-Albertus, Rebecca},
abstractNote = {The technical report discusses how R and D efforts focused on removing perceived risk from cash flows to investors have the potential to lower the cost of capital and increase the amount of leverage in a solar project. It also discusses how creating business efficiencies that allow financing transactions to occur more quickly with less effort can reduce the upfront costs associated with arranging financing for a solar project or group of projects. The paper then assesses the impact that these R and D activities might have on the volatility of PV asset cash flows and asset value, as well as the upfront costs of arranging a financial transaction. Finally, we insert these assumptions into financial models to analyze their impacts on the cost of capital for equity and debt investors, project leverage, and upfront financial transaction costs.},
doi = {10.2172/1432188},
journal = {},
number = ,
volume = ,
place = {United States},
year = {2018},
month = {4}
}

Technical Report:

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