4 FAQs about What does it take to raise funds for energy storage projects

Why do energy storage projects need project financing?

The rapid growth in the energy storage market is similarly driving demand for project financing. The general principles of project finance that apply to the financing of solar and wind projects also apply to energy storage projects.

Why is project finance difficult for energy storage?

It has traditionally been difficult to secure project finance for energy storage for two key reasons. Firstly, the nascent nature of energy storage technology means that fixed income lenders and senior debt providers are naturally risk averse.

Can you finance a solar energy storage project?

Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project. However, there are certain additional considerations in structuring a project finance transaction for an energy storage project.

Why is energy storage investment restricted?

The traditional approach to energy storage projects has restricted investment because it requires financiers to carry out significant due diligence whenever they fund a scheme – because of this, most energy storage investment has historically been off balance sheet or via specialist funds.

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