New finance system for solar industry aims to cut costs, speed up expansion

The recent bankruptcy of Nevada-based solar panel maker business Amonix and the infamous collapse of the manufacturer Solyndra have left many, including the nation's political class, feeling pessimistic about the future of the industry. Part of the problem relates to the high costs associated with setting up companies in the clean energy, both in terms of legal representation and due diligence research.

To combat this, Sol Systems, a green technology finance corporation, has released a streamlined documentation framework designed to speed up the process that inhibits the formation of small- and medium-sized solar-based companies. According to the organization's press release, the previous standard practice involved a lengthy review period that would cost the investor thousands of dollars to conduct. Under the new system, called SolSnapshot, a weeks-long process becomes accomplishable within a few days.

"By reducing these costs through standardization, SolSnapshot provides investors and developers with an affordable fatal flaws analysis for a given project for a few thousand dollars – instead of a hundred thousand, and in a few days – instead of a few weeks,' Yuri Horwitz, Sol Systems' CEO, said in a corporate press release.

The development may be an important catalyst in the process of shifting away from large, government-sponsored initiatives to smaller operations that, up until recently, were mostly locked out of funding markets by their competitors. With the new program in place, communication and collaboration between investors and project owners can be accomplished far more easily due to the reduction in bureaucratic hurdles.

SolMarket, the finance division of Sol Systems, will serve as the framework for the new review process. According to the source, the solar project marketplace is a digital directory for technology designers to tap into a $2.5 billion venture capital market.

One Reply to “New finance system for solar industry aims to cut costs, speed up expansion”

  1. The failure of certain solar panel manufacturers has nothing to do with the growth of solar in the USA. Just post a graph of solar megawatts put online per year and you will see the massive growth that is underway in the USA.

    Sure the financing process can and should be streamlined, but there are a host of other things that can make projects more viable. For example, better DC and AC monitoring can reduce maintenance costs and improve production and thereby reduce overall risk for new projects. It can also reduce or eliminate the need for “DC overbuild” as a strategy for meeting performance guarantees.

    The bottom line is that most people who only know about the solar industry from what they see on the evening news are highly misinformed about the industry. Please don’t allow that misinformation to persist by corroborating those alarmist headlines on websites like this that should be supplying better information about the solar industry.

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