S&P issues glowing solar report, finds operational risk ‘more benign’ than in other renewables

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Lightsource.

Standard & Poor's (S&P) has lauded the early performance of the solar assets it rates, ultimately concluding that operational risk in solar is “more benign” than other renewable technologies.

In a new report issued this week, the ratings agency provided an update on six US-based project finance transactions. It said those projects had been stable over their operational lives and have generally exceeded its one-year P90 generation expectations.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Some of the report’s key findings include strong availability and lower than expected operating costs have contributed to a glowing view of solar PV, while improving system degradation rates have contributed to lengthier maintenance regimes.

Specifically, S&P – which has been rating solar since 1998, said that output from the PV projects it rates has been relatively stable year-on-year, only fluctuating by around 2%. In comparison, annual fluctuations within S&P’s rated wind portfolio have been as high as between 10-30%.

Availability levels in most cases have exceeded 99%, and actual production has largely exceeded the firm’s one-year P90 production expectations.

S&P did however add the caveat that most of the operating histories of the assets it rates remain relatively short and that the firm could see the “strong performance” from early on fall off slightly as assets continue to mature.

“The stability we’ve seen in solar production has aligned with the general stability in our current ratings on solar projects. However, counterparty dependencies and regulatory regime changes continue to be areas of risk and could result in rating movement over the long term.

“The shift from fully contracted projects to auctions or merchant pricing introduces a new set of challenges for the industry,” the report states.

Speaking more broadly about the solar industry altogether, S&P said that it expects the industry to ultimately adjust to tariffs imposed in the US, albeit following slower growth in the short-term, with global growth and declining costs of solar and associated technologies “likely to spur increased deployment” globally.

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.

Read Next

Premium
July 25, 2025
At the SNEC expo, Carrie Xiao took the temperature of the industry as it seeks a way out of cutthroat competition and squeezed margins.
July 25, 2025
Nautilus Solar Energy has entered a US$275 million tax equity partnership with Greenprint Capital to expand its US community solar portfolio.
July 24, 2025
Spanish independent power producer (IPP) Sonnedix has raised €2 billion (US$2.35 billion) through two refinancing transactions in Europe.
July 24, 2025
Spanish energy utility giant Iberdrola has recorded over €3.5 billion in net profits in the first half of 2025 as it continues to expand investments in grid networks and high-value markets.
July 23, 2025
A rise in global tariffs could impact solar PV and battery energy storage system (BESS) installations in the US and EU by up to 10% by 2035.
July 22, 2025
Statkraft has posted quarter-on-quarter declines in electricity generation and earnings in the second quarter of this year.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK