669: Navigating the New Normal in Renewable Finance: How Changes in Equity Markets Are Impacting Project Development with Robert Sternthal

How has the IRA affected financing renewables, in particular solar projects? Renewable energy projects are contending with the harsh realities of rising capital costs and shrinking profit margins. Understanding the financial underpinnings of renewable energy ventures is increasingly crucial, particularly for mid-sized and smaller project developers who often face significant challenges in securing sufficient capital to get their solar projects into the pipeline. These obstacles not only threaten the growth of renewable energy but also raise concerns about meeting global sustainability goals. 

Rob Sternthal, Managing Director at Piper Sandler, brings twenty years of experience in investment banking for the renewable energy sector to bare in this earnest discussion about the realities of the current equities markets and the current financial hurdles faced by project developers.  It is increasingly difficult to achieve the returns necessary to finance large-scale renewable projects amidst rising costs and plateauing electricity prices. He delves into the nuances of the current market, including the shift from traditional equity funds to credit funds demanding higher returns in shorter periods. This shift has significant implications for developers, especially smaller ones who struggle with new barriers like hefty letters of credit for interconnection queues. Sternthal's perspective is not just analytical; he offers pragmatic advice for developers, emphasizing the importance of clear exit strategies, the potential of emerging technologies like battery storage, and the strategic positioning of companies for long-term success.

Rob Sternthal's decades of primary experience in renewable energy finance provides us a nuanced glimpse into the drivers directly impacting project development. Will we continue to see headwinds? Does your experience align with Rob’s guidance and perspective? Tune in, and then let me know your thoughts.

If you want to connect with today's guest, you’ll find links to his contact info in the show notes on the blog at https://mysuncast.com/suncast-episodes/.

Our Platinum Presenting Sponsor for SunCast is CPS America!

SunCast is proudly supported by Trina Solar.

You can learn more about all the sponsors who help make this show free for you at www.mysuncast.com/sponsors.

Remember, you can always find resources, learn more about today’s guest and explore recommendations, book links, and more than 730 other founder stories and startup advice at www.mysuncast.com.

Subscribe to Valence, our weekly LinkedIn Newsletter, and learn the elements of compelling storytelling: https://www.linkedin.com/newsletters/valence-content-that-connects-7145928995363049472/

You can connect with me, Nico Johnson, on:

Twitter - https://www.twitter.com/nicomeo

LinkedIn - https://www.linkedin.com/in/nickalus

Mentioned in this episode:

CPS July 2024 V2