Sectors / Solar & Wind
Proven Technology. Unproven Returns, Without the Right Structure.
Solar and wind are the most bankable technologies in climate — which is exactly why the margin between a good return and a great one comes down to structuring: the capital stack, the tax credits, and the merchant risk.
The Financing Reality
When the technology is proven, the financing is won or lost on structure.
Nobody questions whether a solar array or a wind turbine works. That maturity is a blessing and a trap: because the technology risk is low, competition compresses returns, and the projects that outperform are the ones structured most intelligently. The real variables are the shape of the capital stack, how efficiently the tax credits are monetized, and how well merchant and basis risk are managed as more projects chase the same grid and the same offtake.
Our Role
How we help.
Capital-stack design that optimizes the blend of debt, tax equity, and sponsor equity for the incentives available. Tax-credit monetization that turns the ITC and production credits into near-term capital rather than deferred value. Merchant and revenue structuring — floors and hedges — that protect returns where a PPA doesn’t cover the full offtake. And placement into an institutional network that competes to fund well-structured renewables.
Solutions for This Sector
Which capabilities apply.
Primarily Capital & Tax Credits and Offtake & Revenue Structuring; Technology Risk where a project pairs generation with newer storage or hybrid components.
A Recent Structure
Optimizing a 180 MW solar-plus-storage portfolio.
A developer’s 180 MW solar-plus-storage portfolio had strong fundamentals, but an equity-heavy capital stack and unmonetized investment tax credits were dragging projected returns roughly 300 basis points below target.
We redesigned the capital stack to introduce tax equity, monetized the ITC into near-term construction capital, and placed a merchant revenue floor beneath the uncontracted share of output.
The financing closed with an improved return profile and a lower blended cost of capital, and the sponsor retained more upside than the original all-equity structure allowed.
Sharpening the returns on a solar or wind project?
The structure is where the margin lives. Let’s find it.