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Quantifying the Impact of R&D Achievements on PV Project Financing Costs
D. Feldman, R. Margolis, R. Jones-Albertus
PV Economics, Markets and Policies
Subtopic: PV Economics and Markets
Event: 35th European Photovoltaic Solar Energy Conference and Exhibition
Session: 7DO.3.6
ISBN: 3-936338-50-7
0,00 EUR
Document(s): presentation


The paper discusses how R&D efforts focused on removing perceived risk from cash flows to investors and increasing competition in the financial marketplace 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&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.