Originally posted in Michael Weinstein’s Credit Suisse Alternative Energy Solar Snippet, page 3, February 23, 2018.

Higher debt proceeds could also keep WACC lower. ABS proceeds have increased from 62% of loan to value (LTV) for SolarCity’s first solar ABS issued in 2013 to 77% for their last ABS issued in December 2017. Recently, kWh Analytics achieved even a higher LTV of 85%-90% with a Revenue Put that guarantees revenues from a solar project for the life of the asset. Higher LTV and compressing spreads would help offsetthe impact of rising rates.