Distributor of renewable energy Segen and French BNP Paribas have launched a program to finance commercial and industrial (C&I) solar installations in the UK and Germany.
According to the program, Segen customers can acquire and install solar and energy storage projects via Segen’s list of C&I installers. Customers do not pay in advance costs, instead they pay the projects during their operational lives, and once payments are completed, customers will be fully owned by the projects.
In theory, this approach offers benefits for both installers, who have access to Segen -hardware at zero costs, and customers, who can circumvent the high installation costs related to the installation of new solar and storage projects. Figures from the British Trade Association The Federation of Master Builders note that installation costs can form 10-20% of the total costs that have been incurred on the lifespan of a solar system, and reducing this figure was a priority for the leaders of Segen and BNP Paribas.
“Our installation network has asked for integrated financing solutions that make the transition to renewable energy more affordable for their customers,” said Nicolas Niedhart, Chief Financial Officer of Group at Segen Global, who signed the agreement during this year’s Intersolar Europe event, which was held in München last month.
“This partnership is an important progress in accelerating the transition from clean energy.”
The companies noted that there were plans to expand the scheme in Europe, but did not provide any further details about how or if this expansion would take place, or whether it would depend on the success of the initial regulation in Germany and the UK.
The news follows a number of financing announcements in the British solar room, with projects on different scale. This week, developer Aura Power has protected the financing for its 49.9 MW Grimsby Solar Farm from the Dutch Bank Rabobank, while Ampyr Distributed Energy has obtained a £ 170 debt facility for his solar and energy storage projects in the UK.
More generally, the Solar Media in London this year organized the Renewables Procurement & Revenue Summit, organized last month by Zonnemedia, discussing the role of the Power Purchase Agreement (PPA) when securing financing for solar projects, and how the mechanism can have a further refinement.
