A recent interview in the Wall Street Transcript with Sanjay Srestha, Managing Director and Senior Analyst covering alternative energy at Lazard Capital Markets (LAZ), indicates that the solar power sector could become supercharged through lower-cost capital in the pipeline:
“One of the bottlenecks for the growth in the renewables and solar industry has been the availability and, more importantly, the cost of capital…We expect these barriers to be gradually overcome as projects continue to perform in the field, and we expect to see a private rooftop securitization in the market over the next 12 months,” Shrestha said.
FOR INTERVIEWS WITH THE LEADERS OF THE ALTERNATIVE ENERGY INDUSTRY CLICK HERE.
Pavel Molchanov, an experienced analyst with Raymond James & Associates (RJF) sees the clear beneficiaries of this new trend to be the alternative energy installation companies like SolarCity, and possibly smaller solar power installation companies such as Real Goods Solar (RSOL), which he labels “a pure play on the demand side of the equation rather than the supply side.”
A solar rooftop securitization market would not only lower the cost of solar power and create additional demand for electric vehicles, it would also boost the profits of Wall Street firms underwriting this new asset class. This positive feedback loop could finally drive solar energy into the mainstream of United States energy policy.
SolarCity Corp (SCTY) Captures Solar Energy Value Over the Long Term
February 15, 2013