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SOLAR ROOFTOP SECURITIZATION IN
INDIA AND THE WORLD
Piyush Mathur Simpa Networks, Inc.
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THE GLOBAL PERSPECTIVE Solar securitization is real and happening...
0
200
400
600
800
1000
1200
2014 2015
US
$ m
illio
n Expected Full Year
• SolarCity in the US, is the prima donna among issuers, accounting for most of the volumes.
• Sungevity, Simpa, Sunnova Energy, and Vivint Solar are all in the queue
…but the universe is still small.
Source: Greentech Media
Q1 only
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WHAT DO THESE DEALS LOOK LIKE?
The current view is that 35MW per quarter is the minimum feasible scale.
• Senior tranche 2014-2: Class A of $160m, rated at BBB+ priced at 4.026%
• Junior tranche 2014-2: Class B of $41.5m, rated at BB and priced at 5.450%
Source: Greentech Media
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THE INDIA PERSPECTIVE
• The national ambition is to achieve 40GW rooftop capacity by 2022
• The current capacity is 700 MW. So, even if the ambition is not achieved, we are looking at multiples of growth
• Several bilateral ABS deals but no public market securitization with tranches and active investor group
• The volumes are coming but challenges remain
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THE CHALLENGES: GLOBALLY AND IN INDIA
Limited performance and customer payment data: making it difficult to assess performance risks Lack of widespread operations and maintenance providers: Can’t isolate portfolios entirely from managers if required Standardization in contracts: Pooling of contracts requires some homogenity in structure Education: Low understanding of the business models and risks
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…all eminently solvable
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WHAT IS SIMPA DOING? We sell solar home systems on financing to underserved rural customers
• Aggregating a portfolio of solar micro-leases (PSL-qualified)
• Developed innovative book-building structures with banks
• Next step: Securitisation