How Interest Rates Quietly Transform Your Solar Investment Returns
Capital markets fundamentally determine whether solar projects succeed or fail financially. The cost of capital—expressed through interest rates, equity requirements, and debt terms—directly impacts every metric that photovoltaic professionals use to evaluate project viability: net present value (NPV), levelized cost of energy (LCOE), and internal rate of return (IRR). When the Federal Reserve adjusts benchmark rates by even 100 basis points, solar project economics shift dramatically, potentially transforming a viable 15-year investment into an unfeasible proposition.
Understanding this relationship requires moving beyond …










