Financing parties traditionally prefer projects that have long-term agreements from creditworthy parties to pay a fixed price for a project’s output, meaning that assuming that the project operates as expected, the project will generate revenue that does not fluctuate with changes in market prices for the output. Financing. .
Other forms of variable payments related to storage facilities may provide potential increased revenues to project sponsors and financing parties, although upfront sizing of a project loan or equity investment does not. .
Co-located solar and storage projects usually feature a mix of the fixed and variable revenue sources described above, which continue to evolve as there are changes in regional.
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