Community Solar

Community Solar Program

Finance New Orleans (FNO) is a public trust and green bank deploying catalytic capital to advance clean energy in Orleans Parish. Our community solar financing programs help developers and lenders bring affordable solar to low-income and disadvantaged communities, in alignment with City of New Orleans Council Resolution R-25-352. The use of these financing tools provides the City of New Orleans and FNO with greater local control over affordable and clean energy, in alignment with FNO’s mission to “improve the quality of life in the city of New Orleans by investing in affordable housing, economic development, and climate resiliency projects that produce quality jobs and wealth for residents.” 

FNO offers three financing products to support community solar projects from early development through long-term operations:

Eligibility across all programs. Projects must comply with City of New Orleans and Entergy requirements per Council Resolution R-25-352, achieve a minimum 10% bill savings for participating households, and serve at least 50% LIDAC (low-income and disadvantaged community) residents. 

Application Process across all programs. Intake Form → Complete application → Staff review → Underwriting committee feasibility review → Board approval → PILOT lease or Loan Agreement Execution  

Learn more about each product below. 

Community Solar Payment In Lieu of Taxes (PILOT) 

Ad Valorem and Sales PILOT Program 

• Finance New Orleans’ (FNO) Community Solar Payment in Lieu of Taxes (PILOT) Program supports community solar projects that deliver affordable, clean energy to New Orleans residents. The PILOT replaces traditional property and sales taxes with a predictable annual payment, improving project feasibility while ensuring strong public benefits, including household energy savings and service to low-income communities.  

  PILOT Pricing Structure 

  • Application Fee $3,000 
  • Closing Fee: $50,000-$75,000 (1/3 deposit due at final Board approval) 
  • PILOT Fee 1.45% x Project Size in AC Watts (A calculator will be provided to estimate the total costs)  
  • Annual Payment Depreciation 5% 
  • Other Fees Extension: $2,500, Transfer: $2,500 

Want to test out the Community Solar PILOT for your project?
Download this form and follow the instructions at the top of the page.

Community Solar Pre-Development Loan

Short-term capital to advance early-stage projects toward construction financing 

Finance New Orleans’ Community Solar Pre-Development Loan provides flexible, short-term capital to help developers move early-stage community solar projects toward construction financing. The program is designed to bridge key development expenses, such as site control, interconnection deposits, engineering, permitting, and other activities required to reach financial close. 

Loans are structured as a revolving line of credit that allows developers to draw funds as needed throughout the development process. This financing helps projects advance through critical early milestones while maintaining alignment with the City of New Orleans’ community solar goals. 

Key Loan Terms 

• Loan size: $100,000 – $1,000,000 

• Interest rate: Typically 7–10% annually (determined case-by-case) 

• Origination fee: 1% of loan amount 

• Term length: 12–36 months depending on project stage 

• Structure: Line of credit with milestone-based draws 

• Repayment: Typically repaid at construction financing, project sale, or notice to proceed (NTP) 

Eligible Uses of Funds 

Loan proceeds may be used for pre-development costs necessary to advance a project toward construction financing, including: 

• Interconnection studies and utility deposits 

• Engineering and system design 

• Environmental, geotechnical, and permitting costs 

• Legal, zoning, and regulatory approvals 

• Community engagement and subscriber acquisition planning 

• Development costs directly related to the project 

For full program terms, request the FNO Pre-Development Loan Term Sheet. 

Community Solar Construction Participation Loan 

Capital for construction-period financing alongside a Lead Lender 

FNO’s Construction Participation Loan provides capital for construction-period financing of community solar projects through participation interests in loans originated and serviced by mission-aligned Lead Lenders, including CDFIs, green banks, and institutional lenders. FNO does not originate or service construction loans directly under this program; instead, we partner with Lead Lenders to extend the reach of construction capital available for community solar in New Orleans. 

Key Loan Terms 

• FNO Participation size: Up to $2,000,000 

• Interest rate: 5-8% annually (determined by risk profile) 

• Origination fee: 1% of loan amount 

• Term length: Up to 24 months (construction period plus 6-month buffer) 

• Loan-to-Cost Ratio: Maximum 80%; preferred 60–70% 

• Payment Structure: Interest-only quarterly during construction; principal due at permanent financing takeout, project sale, or maturity 

• Credit Support 

• • Sponsor full-recourse payment + completion guaranty 

• • Personal guarantees from any 20%+ owners 

• • Security interest in project assets, PPAs, interconnection agreements, and subscriber contracts 

• Minimum DSCR 1.15x 

• Sponsor Credit Standards 

• • Standard Pathway: FICO ≥640 

• • Expanded Access Pathway: FICO ≥580 with DTI ≤50% 

• • Maximum one bankruptcy in 7-year lookback 

Federal Compliance

Where federally capitalized, projects must meet applicable federal requirements, including but not limited to BABA, DBRA, and NEPA where triggered. 

For full program terms, request the FNO Construction Loan Term Sheet.

Interested in the Community Solar PILOT Program? 

Apply here