4 ways to advance corporate renewable strategies during the COVID-19 pandemic
[...] 1) Don’t hesitate on quality projects [...] Risks of project delays fueling uncertainty in the tax equity market, investors are looking to close on good deals while they can, which means prioritizing strong, in-progress projects. Beyond potential financing risks and higher costs, equipment supply shortages are expected to increase the costs of early stage projects. As the production of primary material declines and Chinese manufacturers operate with reduced factory utilization, market analysts expect prices for solar PV modules to climb as much as 10-20% throughout 2020. Projects with existing module and other solar hardware contracts in place will be largely shielded from these price increases, increasing the likelihood that near-term projects will offer better returns than those further down the pike. With less demand, lower financing costs, and lower materials costs, early moving corporate buyers should expect to see better pricing and hold more negotiating po...