@HenryF, at 6KWs average, that would mean a 65.5GW install base at 26% market share of full saturation. Just seems mindbogging to just achieve 1/3 of that... just shows how much potential there is in roof top solar in general in those 14 states alone.
SolarCity Announces Pricing of Second Securitization - Yahoo Finance
ABS announced this morning was interesting. Kelly talked about hitting 90mln-100mln mark this round, but it turned out to be 70.2mln. They did get 4.59% which is better then the 4.80% of the first $54mln ABS. However, this $70mln one is a shorter term(2022) compared to the $54mln(2026).
This is fascinating stuff. I wondering how these negotations go? Was this agreement about Solarcity sticking hard to getting that lower rate? How did they arrive at these terms? Since this is only the second solar ABS ever, is a standard offering starting to develop? Can we expect these terms to be the norm for future ABS?
Overall, I would like to hear how the ABS terms are developed and what factors go into how these eventual numbers materialize. I think they want to do at lease one ABS/quarter, so we should get a better sense of it, IMO. I think since this is so new, the market doesn't quite know what quite to make of it, so a shakeout of weak hands happens, IMO.
The way I'm looking at it right now: Solarcity has raised $124mln of capitial that never before was available otherwise. It is also the lowest cost capital achieveable as well. They anticipate doing this 2 or 3 more times this year. I'm going to do an initial projection, based off of today's $70mln ABS, of $140-210mln+ more by the end fo Q4 2014, and a total of up to $332mln of ABS capitial raised at the start of 2015.
Is this going to happen? No idea right now since it's so new and norms/standards are being established each time they do it. It could go down, but it also could go up(duh). My feeling, is this could go up a lot more as investors start getting used to this, as well as seeing more MWs installed and working to see how really secure these lease/ppa payments actually are. Things like this tend to have a tipping point, and when that hits, it could significant, especially if amass a few GWs over the next couple years.
Will be interesting to see how the individual level ABS initial run turns out. Might be less or a hardball negotiation process, but at the same time might present the risk of variabiliy in obtaining that individual ABS capital... meaning how much money will they recieve during a specific time period could be nothing or it could be llittle, at least with institutions you can get a large injection of cash at once... we'll see, right... very intreguing regardless... Solarcity is on the front edge of innovative financing in the Solar industry that's for sure.
SolarCity Announces Pricing of Second Securitization - Yahoo Finance
ABS announced this morning was interesting. Kelly talked about hitting 90mln-100mln mark this round, but it turned out to be 70.2mln. They did get 4.59% which is better then the 4.80% of the first $54mln ABS. However, this $70mln one is a shorter term(2022) compared to the $54mln(2026).
This is fascinating stuff. I wondering how these negotations go? Was this agreement about Solarcity sticking hard to getting that lower rate? How did they arrive at these terms? Since this is only the second solar ABS ever, is a standard offering starting to develop? Can we expect these terms to be the norm for future ABS?
Overall, I would like to hear how the ABS terms are developed and what factors go into how these eventual numbers materialize. I think they want to do at lease one ABS/quarter, so we should get a better sense of it, IMO. I think since this is so new, the market doesn't quite know what quite to make of it, so a shakeout of weak hands happens, IMO.
The way I'm looking at it right now: Solarcity has raised $124mln of capitial that never before was available otherwise. It is also the lowest cost capital achieveable as well. They anticipate doing this 2 or 3 more times this year. I'm going to do an initial projection, based off of today's $70mln ABS, of $140-210mln+ more by the end fo Q4 2014, and a total of up to $332mln of ABS capitial raised at the start of 2015.
Is this going to happen? No idea right now since it's so new and norms/standards are being established each time they do it. It could go down, but it also could go up(duh). My feeling, is this could go up a lot more as investors start getting used to this, as well as seeing more MWs installed and working to see how really secure these lease/ppa payments actually are. Things like this tend to have a tipping point, and when that hits, it could significant, especially if amass a few GWs over the next couple years.
Will be interesting to see how the individual level ABS initial run turns out. Might be less or a hardball negotiation process, but at the same time might present the risk of variabiliy in obtaining that individual ABS capital... meaning how much money will they recieve during a specific time period could be nothing or it could be llittle, at least with institutions you can get a large injection of cash at once... we'll see, right... very intreguing regardless... Solarcity is on the front edge of innovative financing in the Solar industry that's for sure.
