July 29, 2024 | by Brittany Good | Engineering + Technology, NRG Stories, Solar Resource Measurement, Sustainability + Energy
Bankability is a cornerstone term at NRG Systems and within the solar industry at large. At its core, bankability refers to a developer’s capacity to secure funding with favorable financing terms for a prospective project, paving the way for the construction and operation of successful and profitable solar installations.
MITIGATING RISK FOR ENHANCED BANKABILITY
Risk identification and mitigation are critical to a project’s bankability. From obtaining accurate pre- and post-construction measurements to choosing experienced, financially strong suppliers, reducing risk and building investor confidence is at the heart of every decision made during solar project development.
Below we break down the essential components of bankability in solar project development, addressing the critical hurdles to securing favorable financing and setting the stage for efficient, effective solar projects.
THE IMPORTANCE OF CHOOSING THE RIGHT SUPPLIERS
The financial viability and longevity of the solution providers and other partners you choose for your solar project are crucial to reducing risk and increasing bankability. A solar project’s lifecycle spans decades, from pre-construction assessment through operation. Choosing steadfast partners capable of delivering products and services for the long term is key to avoiding complications. Whether you are evaluating options for a technology supplier, EPC provider, or other partner, consider factors such as proven experience, financial stability, technical expertise and innovation, and supply chain robustness to boost overall project bankability.
THE ROLE OF TECHNICAL EXPERTISE AND INNOVATION
Utilizing advanced, best-in-class technology is essential for optimizing all stages of development, enhancing performance, and improving ROI. Beginning with the pre-construction phase, selecting resource assessment solutions that provide reliable, accurate data is critical for understanding a site’s energy production potential and creating operational forecasts. As a project moves into the operational phase, high-quality, accessible resource monitoring data ensures a project is performing as expected and modelled, allowing stakeholders to proactively address potential issues.
THE SIGNIFICANCE OF DATA AVAILABILITY
Data is the backbone of a solar project, providing critical insight at all stages and informing everything from performance estimates and project layout to operational analyses. This is why reliable data collection and accessibility are so crucial to solar project bankability. High data availability can be achieved by selecting measurement systems with a proven track record of precise and consistent performance, utilizing a cloud-based platform to access and manage data, using integrated solutions to simplify data analysis and interpretation, and performing regular data integrity checks to ensure data accuracy and completeness. When high data availability is achieved, project confidence increases and provides transparent, reliable insights into a project’s performance, risks, and financial returns.
NRG’S BANKABILITY EXPERIENCE
With over 40 years of experience providing resource measurement solutions to the world’s largest renewable energy developers, NRG understands the critical role data plays in both establishing confidence in a solar plant’s future operational performance and delivering on that promise. That is why we developed our Flare Solar Resource Measurement Solutions – a portfolio of turnkey systems that deliver accurate, site-specific data with bankability at its core.
Designed to the solar industry’s IEC 61724 standards, NRG’s Flare Resource Measurement Systems ensure bankability and data accuracy at all project stages. Our integrated systems encompass everything from standardized hardware, including an NRG data logger, NRG R2 Pyranometer, and other project-specific meteorological sensors, to data management tools and installation and maintenance support. These systems ensure reliable and repeatable performance with high data availability, thanks to unparalleled accessibility, automated data checks, rapid issue detection, and comprehensive reporting. To date, NRG has helped projects in over 175 countries secure financing and maintain optimal operation. We continue to invest in research and development to create cutting-edge tools and systems for renewable energy resource measurement, enabling us to provide clients with the highest quality, most accurate data essential for renewable energy projects.
This blog post is the first in a series that will highlight the critical role of meteorological data in building and operating successful utility-scale solar projects. Be sure not to miss the next installment by joining NRG’s email list: https://www.nrgsystems.com/home/mailing-signup/.