Will Rooftop Solar Securitizations Power Electric Vehicle Bull Market? Interview with Sanjay Shrestha, Managing Director and Senior Analyst Covering Alternative Energy at Lazard Capital Markets (LAZ)
67 WALL STREET, New York - August 16, 2013 - The Wall Street Transcript has just published its Alternative Energy Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Grid Parity Timelines for Alternative Energy - Asia Pacific Demand for Solar Energy - Alternative Energy Generation - Solar Energy Pricing - Government Subsidies and Regulation - Solar Growth Drivers and Headwinds - Regulatory Headwinds for U.S. Utilities
Companies include: ADA-ES Inc. (ADES), Lennox International Inc. (LII), Johnson Controls Inc. (JCI), AO Smith Corp. (AOS), Westport Innovations Inc. (WPRT), First Solar, Inc. (FSLR), Tesla Motors (TSLA) and many others.
In the following excerpt from the Alternative Energy Report, an experienced analyst from Lazard Capital Markets discusses the outlook for the sector for investors:
TWST: In your latest solar report, you wrote that "solar securitization will become a new asset class." Can you elaborate?
Mr. Shrestha: Sure. One of the bottlenecks for the growth in the renewables and solar industry has been the availability and, more importantly, the cost of capital. As we see continued growth of solar, driven by significant cost reductions and an improving economic value proposition, we believe additional financing structures will evolve.
Solar as a financing asset class is still in the early stages of its development, and we expect a number of new financing avenues to be available to finance solar projects. Key among these could be solar securitizations, REITs, and potentially, MLPs at some point in the future.
The key barriers to securitizing assets have been a lack of default history, nonstandard documentation and a limited pool of quality servicers. We expect these barriers to be gradually overcome as projects continue to perform in the field, and we expect to see a private rooftop securitization in the market over the next 12 months.
TWST: You expect the solar sector to eventually become an oligopoly. How do you anticipate that evolution will take place and over what time frame?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
