It might be obvious to anyone in the renewable energy business, but a growing body of data collected by Fitch Ratings backs it up: Solar projects are a safer bet than wind farms when it comes to kicking out the expected amount of power.
Many wind farms significantly underperform expectations, according to a recent Fitch analysis. On the other hand, solar arrays are proving so reliable over time that developers are finding themselves able to secure financing on more favorable terms — an important long-term tailwind for the market.
Remarkably, the biggest threat to the credit ratings of some California solar projects these days is not the plants themselves but rather questions around the future viability of their utility offtakers.
