How Are Lenders Evaluating Co-Located Solar Projects in Markets with Negative Price Risk?

Synopsis

As negative pricing events become more frequent in renewable-heavy grids, co-located solar projects face unique revenue challenges and opportunities. This session examines how lenders are evolving their risk assessment frameworks, financing structures, and covenant requirements to accommodate the complex economics of co-located solar assets operating in markets with increasing negative price exposure.

• Lender risk assessment methodologies for evaluating co-located solar projects’ resilience to negative pricing scenarios
• Financial modeling approaches that accurately capture the revenue impact of negative price events on different co-location configurations
• Lender perspectives on standalone solar’s long-term viability given accelerating cannibalization effects
• Case studies of successfully financed co-located projects that effectively addressed lender concerns about negative price risk
• Emerging best practices in project structuring that optimize bankability while maintaining operational flexibility during negative price periods
• Regional variations in lender appetite for co-located projects based on market-specific negative price frequency and duration