Finance
Debt financing is the process of raising capital for a project or company by borrowing money, which must be paid back over time with interest. In solar investing, debt financing might involve loans from banks, issuing green bonds, or other credit facilities to fund the construction of a solar farm or renewable project. Using debt (such as project loans) allows developers to leverage their equity, potentially increasing returns on investment, but it also introduces the obligation of debt service (interest and principal repayment) that the project must meet from its cash flows.