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U.S. Department of Energy
Office of Scientific and Technical Information

Near-term leveraged leases for commercial solar investments

Technical Report ·
OSTI ID:6534101

The first commercial solar plants can be financed through joint ventures between solar hardware manufacturers and institutions or individuals who can take advantage of the current tax incentives on capital (specifically solar capital equipment). One type of financing that is currently being considered is the leveraged lease. To implement a leveraged lease, the solar hardware manufacturer would first sell the solar plant to third-party owners (investors), who would use a mixture of debt and equity to make the purchase; then the manufacturer would lease the plant back from the investors and operate it for the term of the lease. a hypothetical 12 MWe parabolic trough system is used as an illustrative example of this financing technique. Yearly cash flows for the investors and the manufacturer/plant operator are presented. Sensitivity analyses ahow the change in the net present value of the investment when the base assumptions are varied over a wide range.

Research Organization:
Sandia National Labs., Livermore, CA (USA)
DOE Contract Number:
AC04-76DP00789
OSTI ID:
6534101
Report Number(s):
SAND-82-8038; ON: DE83005904
Country of Publication:
United States
Language:
English