Community Solar Anchors: Why We Aim For Investment-Grade Clients

Yesterday we hosted a call with one of our newest strategic partners who wanted to understand why we started with the investment-grade clients of his business.

In our experience closing these types of deals over the last six years, solar developers want organizations with the strongest levels of credit to be amongst those that get accepted as anchor tenants.

This article dives into the core reasons why and the five ways anchors support community solar growth.

The Reason for Investment-Grade Credit

First, allow me to explain the structure of a typical community solar asset.

In any community solar asset, you have multiple subscribers (customers) purchasing power from that solar array. It’s a fantastic way to participate in solar for those who cannot put panels on-site.

On those solar farms, anchor tenants are selected to take up the majority of capacity as a single off-taker. Typically, they take up ~40% of the entire solar farm.

By including these anchor tenants, the same way you would a different CRE asset like a strip mall, you can effectively mitigate the risk of the project.

Now that you know anchors are all about derisking an asset, allow me to explain why investors prefer those anchor tenants with investment-grade credit:

1. Strong Financial Stability & Creditworthiness
2. Provides Confidence to Investors the Project will Succeed
3. Their Commitment Attracts More Investors & Ensures Viability

In summary, having an investment-grade company as an off-taker for a community solar anchor position adds credibility and stability to the project, making it more attractive for financing and impact.

Now, let’s talk about the importance of anchors as they relate to community solar growth:

1. They Contribute to Equitable Access

2. They Help Prioritize Access to Underserved Communities

3. They Mitigate Risk

4. They Get Projects Financed

5. They Inspire Others & Drive Innovation

Conclusion

As you can see, choosing the right anchor tenants for community solar offtake is an important decision.

We’ve learned that they allow access to deep community impact, help projects get approved, create long-term stability of assets, and inspire future investors & partners.

Our company bridges the gap between qualified anchor tenants and available community solar projects. In less than 90 days, we’ve been able to take our average anchor and help them access ~$25,000+ yr1 savings using our process.

Are you a large user of electricity seeking to access the community solar program for enhanced sustainability practices and improved operating profit?

We’re working on a waitlist-only basis, and you can get started with a complimentary strategy call to see if you’re a good fit.

Get started today at communitysolarauthority.com