By: Robert Gibbons, Strategic Development Manager, Trina Solar US

Despite the solar industry’s remarkable growth and the country’s urgent need for more renewable energy solutions, many solar Engineering, Procurement, and Construction (EPC) firms and developers still face significant funding headwinds trying to navigate the increasingly complex and volatile solar financing sector.

Developers and EPCs are chasing down a portfolio of projects but not all will move forward. The ones that do not pan out result in “broken deal costs” — expenses that successful projects must absorb, straining the economics of those projects. The key involves:

i) quickly evaluating and high grading projects

ii) accessing capital solutions to manage those expenses, and

iii) managing project development to minimize execution risk.

Beyond broken deal costs, chances are, most EPCs and developers reading this have encountered a significant roadblock in project development because of at least one, if not several, of these obstacles:

• High upfront costs

• Difficulty securing affordable capital

• Complex financing structures

• Intense competition for high-quality projects

• High interest rates, making capital more expensive

• Volatile solar PPA prices due to project development delays

• A recent dip in total corporate funding and venture capital investments

These challenges can lead to project delays, increased costs, inability to attract investments, or a failure to launch altogether. While the hurdles might seem insurmountable, EPCs and developers can expand business development opportunities, unlock financing options, and access valuable market insights with the right partnership. 

Trinasolar US’s full service approach helps developers and EPCs tackle these challenges by significantly limiting broken deal costs, providing access to capital solutions, and minimizing project risk.

More than Modules: Trinasolar US as a Solution

You might already recognize Trinasolar as a leading Tier 1 OEM with a proven history of bankability and supplying highly reliable PV modules. 

But did you know Trinasolar US is more than just a module manufacturer? The company is also a dedicated long-term partner that helps EPCs and developers execute on the capital side as well as the project side.

Trinasolar US sits at the nexus of the solar industry. Its deep understanding of project finance can greatly benefit solar firms, especially smaller operations with limited resources. The company has established partnerships with capital providers across the capital structure and supporting projects as well as developers and EPCs all eager to work with Trina on as many projects as possible.

This unique position within the industry opens the door to financing options and opportunities for EPCs and developers in several key ways that impact solar projects:

Working Capital Support

Trinasolar US works with its capital provider partners to improve payment terms and support developers' overall working capital across a portfolio of projects to help our clients grow their businesses. By leveraging Trinasolar's relationships and industry expertise, EPCs can secure more favorable financing terms and maintain a healthier cash flow throughout the project lifecycle.

Reducing Broken-Deal Costs

The TrinaPro total solar solution includes pre-sales engineering and project management to help clients analyze projects and identify those most likely to succeed. The offering allows EPCs to focus resources on viable projects rather than incurring costs on deals that may not pan out. Solar firms can then more strategically develop their business approach and program, ensuring that capital is available for projects with the highest likelihood of success.

Tax Equity Optimization

With the Inflation Reduction Act (IRA), most solar projects can underwrite up to a 30% tax credit. Trina’s local team of solar experts helps EPCs optimize their capital structure and efficiently utilize tax equity as a powerful form of CAPEX financing to significantly reduce upfront costs and improve project economics. Trina, along with tax equity partners, can also buy tax equity from the installer or guide partners through selling tax credits in a transfer market or utilizing them in a partnership flip or inverted lease structure.

Expanding Business Development Opportunities

In many ways, Trinasolar US serves its partners as a zero-cost business development resource to help identify and pursue new opportunities. Capital providers view Trina as a value-added partner because of its extensive relationships, bankability, and scope of services. The capital providers recognize Trina’s ability to bring to the table attractive projects and relationships with developers and EPCs. This unique benefit enables Trina’s partners to expand their offerings beyond simple solar installations and provide their clients with more options, such as power purchase agreements (PPAs), direct financing, and more. EPCs and developers can become more valuable to their clients by broadening the conversation around renewable energy solutions.

Market Insights and Guidance

Trina’s position at the heart of the solar industry allows it to provide EPCs with valuable market insights and guidance. By understanding market dynamics across all market segments (utility, C&I, and residential), identifying key players, and anticipating trends, Trinasolar can help EPCs navigate the complexities of the solar landscape and make informed decisions. This knowledge is particularly advantageous for EPCs looking to enter new markets or expand footprints in existing ones.

As the solar industry continues to evolve and financing avenues and vehicles become more complex and volatile, it’s more critical than ever that EPCs and developers have a trusted partner with a history of success.

From the moment a solar project idea sprouts, Trinasolar US is here to provide expert support, guidance, and opportunities for tackling financing and capital challenges. Trinasolar US has a 15-year history of successfully working with the domestic solar market and the company’s ongoing investment in U.S. manufacturing will help support its long-term success and yours.

Looking for more solar project feasibility, reliability, and profitability? Contact Trinasolar US.

This article originally appeared in pv magazine Online