Solar projects are financed on contracted cash flow. The panels are commodities and the construction is well understood; what varies is the interconnection position, the offtake, and whether the production estimate is independent. Those three things decide both the structure and the price of the debt.
| Route | Where it fits | What it turns on |
|---|---|---|
| USDA REAP | Agricultural producers and rural small businesses installing renewable energy systems. | Grant funds capped at 25 percent of eligible project costs, a maximum RES grant request of $500,000, and combined grant plus guaranteed loan limited to 75 percent of eligible costs (7 CFR 4280.115, 4280.137). |
| USDA OneRD / B&I | Projects in eligible rural areas, where the guarantee helps a lender hold a longer term. | Rural eligibility, tangible balance-sheet equity of 10 to 25 percent under 7 CFR 5001.105(d), and a feasibility study above $1,000,000 for a new business. |
| SBA 504 | Owner-occupied real estate and long-lived equipment, in a bank plus CDC debenture structure. | Eligible fixed assets and the borrower contribution rules, which rise for a new business or a special-purpose property. |
| SBA 7(a) | Acquisition, working capital, equipment and some construction; the most flexible federal route for an operating business. | Size standards, owner-occupancy and repayment ability from the business itself. |
| Conventional bank or credit union | Experienced sponsors with strong balance sheets, and projects too large for the federal ceilings. | Coverage, leverage, sponsor liquidity and the appraised value of the collateral. |
| Tax equity and third-party ownership | Structures where the tax attributes are monetised by a party other than the host. | Legal structure, allocation of benefits, and the host’s obligations under the site or power agreement. |
REAP is a cost-share programme, not a project-finance solution. The grant is capped at 25 percent of eligible project costs, and where a REAP grant is combined with a REAP guaranteed loan the combined funding may not exceed 75 percent of eligible costs. That leaves a real equity requirement, and applications that assume the grant closes the whole gap are the ones that stall.
REAP also runs on technical documentation. The technologies the rule names require a technical report in the prescribed format, and the Agency may require a feasibility study for a renewable energy project where the technical report leaves financial, technical or market feasibility unresolved. Details are on the REAP page.
Our renewable work is described at solar farm feasibility studies, with related analysis at battery storage and microgrid and distributed energy.
Last reviewed September 2026. Programme figures are quoted from the sources below; everything else is professional commentary.
Independent feasibility, production and offtake analysis. Fixed fee quoted in one business day.
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Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.