Stressed solar looks beyond Wall St. for capital

SAN FRANCISCO/LOS ANGELES (Reuters) – The solar industry needs $2 billion to expand next year, but with Wall Street still nervous about backing risky and capital intensive ventures, companies are looking beyond to boutique banks and other sources of funding to avoid falling behind.

Government sources, state-owned banks for Chinese players and small investment advisory firms are stepping into the shoes of the big banks that helped companies solar companies raise millions in the public markets during their first waves of expansion.

The still-emerging solar power industry is hoping to return next year to its annual growth rate of 50 percent after a difficult year of falling panel prices and tight credit.

To compete and gain market share, many companies are looking to boost their output of panels that convert sunlight to electricity, a process that often requires outside capital.

Reuters