Solar Financing Group
At 1st Source Bank, we understand that powering a sustainable future requires more than just vision – it demands strategic financing solutions. We’re your dedicated partner in renewable energy development, offering comprehensive financial services across the U.S., especially in the Northeast and Midwest.
1st Source Bank has been a driving force in renewable energy financing since 2016 having financed over 500 MW of solar project developments. Our dedicated solar division specializes in tailored financial solutions to developer/owners focused on community solar, commercial installations, and projects for universities and municipalities. Our expertise extends to Solar + Battery Energy Storage Systems (BESS) and BESS-only project financing. We understand the complexities of the renewable energy market, and we’re committed to providing a seamless experience.
We offer a unique all-in-one approach to solar financing. From initial loan closing and construction financing to long-term permanent financing and tax equity investments, we’re with you every step of the way. Our deep understanding of the various state solar programs, combined with our commitment to sustainability, makes us the ideal partner for your next renewable energy project.
Our construction loans provide the necessary capital to bring your solar projects to life. We offer competitive rates and flexible terms to support your construction timeline, and are designed to convert to permanent financing when the job is done.
We leverage the power of Partnership Flip structures to maximize tax benefits for your projects, unlocking capital and enhancing project returns. Our team has extensive experience with P-Flip transactions and can guide you through the process.
Solidify the long-term value of your solar investment with our permanent financing options. We offer attractive rates and extended terms, enabling you to secure predictable cash flow and increase long-term profitability.
We’re passionate about supporting the growth of community solar projects, bringing clean energy access to local communities across the country.
We offer customized financing solutions for commercial and industrial solar installations, helping businesses reduce their energy costs and enhance their sustainability efforts.
We’re proud to partner with universities and municipalities to implement solar projects, contributing to a cleaner and more sustainable future for these vital institutions.
We’ve financed numerous successful solar projects across the Northeast and Midwest, demonstrating our commitment to driving the growth of renewable energy in the region. Our portfolio includes diverse projects, from community solar farms to commercial rooftop installations. We’re proud of the positive environmental impact these projects have generated, contributing to a cleaner and more sustainable future
Ready to discuss your next solar project? Our experienced team is here to help. Contact us today to learn more about our financing solutions and how we can help you achieve your renewable energy goals.
We work exclusively with experienced solar developers, commercial EPC firms, and institutional clients such as municipalities, universities, and community solar sponsors who have proven track records and scalable projects. Our focus is on mid-to-large-scale deployments across the Northeast and Midwest, typically 500 kW and above. We do not finance residential projects or early-stage startups.
Community solar enables aggregation of subscribers, scalable deployment, and more predictable revenue streams. These projects often qualify for state-level incentives and support long-term PPAs or subscription models, making them attractive to tax equity and debt investors.
Behind-the-meter (BTM) systems reduce peak demand charges and stabilize long-term energy costs. Structured with leases or PPAs, they offer strong IRRs and allow developers to retain tax benefits. We assess credit quality, ownership structure, and load match to de-risk financing.
Growth is driven by evolving state incentive programs like Illinois Shines and NY-Sun, expanded grid funding, and the Inflation Reduction Act’s bonus tax credits. Grid modernization in MISO and PJM is also accelerating solar-plus-storage opportunities.
We structure tax-exempt leases, service agreements, and prepay PPAs that deliver long-term savings without requiring public debt. For private institutions, we enable tax credit monetization through third-party ownership and buyout options.
RECs—especially SRECs in select markets—can significantly improve project cash flow. Long-term contracts or spot trading strategies add value and impact DSCR and lender confidence. We help align REC structures with project financing models.
Yes. We offer portfolio-level financing for multi-site projects using streamlined underwriting across shared sponsor entities and off-taker profiles. This approach reduces soft costs, accelerates closings, and supports regional expansion.
We have extensive experience with Partnership Flip (P-Flip) structures. We help model capital stacks, IRR thresholds, and tax credit timing to meet investor expectations. Our team understands flip timing, reversion mechanics, and IRS compliance.
Inflation has driven up capex, labor, and interconnection costs. We help clients adjust financial models and structure construction and permanent loans that absorb cost fluctuations without compromising project returns.
