Maybe. Lenders and PPA companies are all about taking virtually no risk right now. Cost of tax equity has risen and underwriting guidelines have gotten tougher. The recent softness in NJ SREC values has really impacted things.
So what to do?
It depends. If you’re looking to construct a wholesale to the grid project, it’s going to be a lot harder to get this off the ground. It doesn’t matter how much you’ve spent developing your project to this point, you’re probably out of luck for now.
If you have a net metered project, you’re probably OK if you and your lender are fine with paybacks being in the 6-7 year range.
Investment money moves in large chunks. In New Jersey, we’ve been lucky for the past several years that solar paid off so well due to artificially high SREC values. Now, it’s a more normal market. Those large chunks of money are now seeking higher returns and solar is still a phenomenal value in New Jersey but the profile customer has changed. Gone are most of the pure-play investors. It’s now a game for the long-term owners. If you own your own business and building and have sufficient free cash flow, come on in. We’re all here to help and there’s plenty of money for you.