Clean-energy builders selling stakes in finance arms to get cash

An increasing number of solar and wind developers are opting out of a security which is used to help finance clean-energy products. "You have to focus on saving the core business first," says one analyst.

Photo: LM Wind Power

Two years ago, solar and wind developers couldn't get enough of a security that helped finance their clean-energy projects. Now, a growing number are considering cashing out.

The industry created publicly traded securities, known as yieldcos, to raise capital for new construction, which attracted shareholders eager for dividends from the sale of electricity. Fifteen US and European companies raised USD 12 billion in public markets through mid-2015 as renewable energy grabbed an increasing share of the global power market, according to Bloomberg New Energy Finance.

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