So, to put it more simply, Bloomberg tracks large scale solar installations around the world and keeps data on who finances them and how they went. They focus on projects that were financed with non-recourse financing which means that the bank is taking the risk on the panels performing and not the company’s balance sheet they are lending the money to.
Meaning if things go pear shaped, the bank can only use the solar panels as collateral for the loan and not any cash or other assets the company owns separately.
When we say large scale, Bloomberg only uses installations of solar panels of over 1.5 megawatts. To put that in perspective, that’s well over 200 standard residential rooftop installations.
So, when you look at it, a tier one solar panel manufacturer is basically really big and generally pays their bills. That’s pretty much it.
If you want to read more about the structure we have posted a link to the Bloomberg information sheet on our website. Check out our page in the description below.