23. Solar Technology Works
Massachusetts Bankers Association’s 2021 Renewable Energy Summit
Solar: Believe in the Technology
In last week’s Mass Bankers Association 2021 Renewable Energy Summit, attendees heard from experienced Community Bank Champions and solar lenders and tax equity investors: Needham and Coastal Heritage Bank.
Title: Banking on Solar Panel Host: Malia Lazu, Founder & CEO, The Lazu Group and MIT Sloan School of Management Lecturer (Right) Panelist: Robert Terravecchia Jr., Chairman, President & CEO of Coastal Heritage Bank (Left) Panelist: James Daley, SVP & Director of Structured Finance (Center)
Robert Terravecchia, President and CEO of Coastal Heritage Bank, provided advice to community bankers considering the solar market, “Immerse yourself in the technology and the rest will take care of itself.” Coastal Heritage’s solar financing heritage is over 10 years in the making.
Solar: The Technology Works
“Solar technology has been around since the 1950s. We know it works.”
– Robert Terravecchia
Sunlight provides as much energy in 90 minutes as is consumed by every person on the planet in a year. By its simplest definition, solar technology captures sunlight to generate electricity. Electricity is generated by solar systems as they capture the sun’s rays beaming down on them. We recommend the Department of Energy’s 2-minute video, which offers a simple breakdown of this process.
Mr. Terravecchia points out, “If you believe in the technology, you believe in the cashflows.”
Solar: Tried and True Asset Class
“I know where my collateral is, and I know when the sun comes up. As a community banker, I love that!”
– Robert Terravecchia
Over a decade ago, when Mr. Terravecchia first began thinking about solar as an asset class, solar accounted for 4% of total new generating capacity in the U.S. electric grid. Today, solar represents 54% of the new generating capacity. Mr. Terravecchia believes in solar not only as a strong technology but as a strong asset class, “Solar, as an asset class, has performed remarkably well notwithstanding the pandemic.”
Source: SEIA/Wood Mackenzie Power & Renewables U.S. Market Insight 2021 Q4
According to the Solar Market Insight Report, the U.S. solar market installed 33% more solar capacity in Q3 2021 than it did in Q3 2020, the largest Q3 on record. To Mr. Terravecchia, there is comfort in owning an asset with no moving parts, especially when that asset stays stolid for over 30 years. His strategy is simple, “Set it, and forget it.” So long as the sun shines, community banks like Coastal Heritage will continue to benefit from their solar investments.
We Wish Everyone a Happy Holiday Season!
May your holidays be full of warmth and cheer. In the new year, Sunwealth will continue with more highlights from the MBA 2021 Renewable Energy Panel. Below you can find the full video to hear directly from your banking peers as they discuss their experiences as solar lenders and tax equity investors.
MBA 2021 Renewable Energy Summit
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Andrew Hollander joined Sunwealth as an Associate shortly after graduating from Bentley University. He is amped to put his degree to work and motivated to create a clean energy future for all. When he’s not managing solar assets, he can be found watching Seinfield or spending time with friends and family.