'Solar sector fundamentally depends on financing lines'

Expert highlights that more and more banks are offering lines of credit to finance renewable projects
01-08-21-canal-solar-'Solar sector depends fundamentally on financing lines'
“Few customers are able to pay the money upfront,” says Joaquim Fernandes, commercial director at Aldo Solar. Photo: Freepik

“Currently, the solar energy market depends fundamentally on financing lines. It’s a trend.” This is the analysis of Joaquim Fernandes, commercial director of Aldo Solar. According to him, more and more financial institutions are offering credit lines aimed at sustainability. “Few customers are able to pay the money upfront. There is usually a bank behind the operation.”

As is the case with Santander Brasil, which raised R$780 million to finance solar projects. The resources will be directed to credit for the purchase of photovoltaic systems by individuals and SMEs (small and medium-sized companies).

The investment was obtained through the IFC (International Finance Corporation), which ed forces with the bank to the renewable energy financing program. “Our investment in Santander will promote sustainability and improve the availability of climate finance in the country,” said Carlos Leiria Pinto, IFC’s general manager in Brazil.

“The impact will be felt both in of economic benefits and the irreversible trend towards clean energy, mitigating the impact on the environment,” said André Novaes, director of Santander Financiamentos. According to the Aldo executive, the photovoltaic sector lacks financing. “So, when we see investment from abroad, in an institution like Santander, we see it positively.”

According to Fernandes, it is possible to see other banks expanding credit lines, such as Banco do Brasil, BV and Solfácil. “There are also Sicredi and Sicoob, more regional, and BNDES, in the line destined for planting, with a lot of commitment to photovoltaic”.

In the case of Aldo Solar, for example, the expert said that today 40% of solar projects are financed. “In relation to the other 60%, it is not possible to say, but the estimate is that these resources will also be financed by other institutions”.

Photo by Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. He has been following the Brazilian electricity sector since 2020.

An answer

  1. It's great to have several banks or finance companies operating in this segment, but it's very sad to know that the analyzes of these credits are VERY bureaucratic, they want to include a LOT of services to be approved, thus making the effective financing rate very high, making the customer give up on the investment.

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