In the expanding horizon of renewable energy, surety bonds emerge as a valuable, unsecured, and cost-efficient alternative for our clients, standing out in contrast to traditional cash or LCs. At Horton, we’re at the forefront of redefining the application of surety bonds, aligning them with the growing demands of your credit and security projects.
Here’s an insight into the diverse applications of surety bonds in the renewable sector:
- Surety-Backed Letters of Credit (SBLCs): Banks front the surety, retaining the advantages intrinsic to traditional surety bonds. This means the credit extension finds a place in your statement footnotes, not your balance sheet. Plus, it frees up established bank relationships for other collateral or borrowing endeavors.
- Payment and Performance/Construction Bonds: Our association with EPC clientele reveals a growing trend – they seek our expertise in navigating better surety capacities and terms for their ventures. With a surge in portfolio-based project awards to EPCs, our focus remains on structuring bond requirements optimally.
- Interconnection Facilities Study and Network Upgrade Securities: Incorporating utilities like PNM, Pacificorp, Dominion, SCE, PG&E, Duke Energy, Entergy, Ameren, and more.
- PPA Securities: Covering both pre-COD and post-COD securities.
- Equipment Deposits to Manufacturers: Associating with industry stalwarts such as First Solar, Canadian Solar, Boviet Solar, Mitsubishi, CATL, Samsung, and BYD.
- Decommissioning: Asset proprietors face increasing demands from municipalities, towns, and landowners to ensure security for system decommissioning post the PPA’s term. The market offers varied bond formats – some offer annual renewals, while others span the entire PPA duration.
- Solar Module Recycling: In certain jurisdictions, there’s a mandate for security measures to ensure the proper recycling of solar modules.
By integrating surety bonds into the renewable energy framework, we’re not only fortifying financial security but also championing sustainable development.