Debt and equity compared.
Which form of capital fits your project? A structured overview of equity and debt solutions and the criteria of bankability.
Equity bears the project risk and participates in the upside; debt requires stable, verifiable cash flows. The following capital types and bankability criteria structure the decision.
Capital types
Equity
Project company capital from developers, funds or strategic partners.
Debt
Senior or mezzanine loans at project or corporate level.
Development capital
Risk capital for the development phase up to RTB.
Construction finance
Financing of the construction phase, often milestone-based.
Joint venture
Joint project company with shared risk and capital.
Bankability — 11 criteria
Financing partners typically review these eleven criteria. Projects with high coverage achieve better terms and higher leverage.
01
Technical bankability
Proven technology, achievable performance, documented degradation.
02
Revenue model
Traceable revenue stacks with robust assumptions.
03
Counterparties
Creditworthiness and track record of key counterparties.
04
EPC contract
Bankable EPC structure with warranties and LD regimes.
05
OEM strength
Manufacturer with substance, EU presence and references.
06
Warranties
Capacity, round-trip efficiency and availability guarantees.
07
Grid connection
Secured connection with clear costs and timelines.
08
Permits
Legally secure permitting situation.
09
Construction risk
Experienced contractor, realistic schedule.
10
Merchant exposure
Share of volatile revenues and hedging strategy.
11
Debt capacity
Leverage potential based on stable cash flows.
Structure financing?
Submit a mandate or list your project with its capital requirement.