Bankers say they are close to securitisation of cash flows from solar.

FT: “Bankers say they are close to turning sunshine into bonds for the first time, highlighting how exotic securities are shedding the toxic image they gained in the financial crisis amid fresh innovation.”“The bonds would be backed by cash flows generated from leasing solar panels to businesses and homeowners. Companies such as SolarCity and SunRun are offering panel installations to their customers, who can then claim tax breaks. Russ Burns, head of esoteric asset finance at Credit Suisse, said sunshine was a natural candidate for this procedure, known as securitisation. “Solar assets and related cash flows are very similar to various consumer and commercial assets that we have securitised in different venues.” ….Bankers have been seeking to create a solar panel-backed deal for more than a year but have had to contend with sceptical rivals and investors. Would-be investors in the bonds face a number of idiosyncratic risks including new technology and the general perils of investing in a brand new asset class. ….But recent developments such as SolarCity’s $98m initial public offering in December have paved the way for a solar deal in 2013, some bankers say.