The extent to which solar in the UK is a success hinges largely on its ability to access low-cost finance.
As Thierry Lepercq, chairman of French company Solairedirect explains, solar is one of the most capital intensive forms of energy generation so it requires a higher up-front investment. In order to get projects off the ground then access to low-cost finance becomes a crucial aspect.
In the video below, Jigar Shah, Thierry Lepercq, Nick Boyle and Jerry Hamilton all explain the role that finance is playing in the UK:
Traditionally, access to finance has always been one of the most significant barriers facing solar developers. However, it appears that the financial retail service have started to take note of solar’s recent success.
Solar as an asset class in the UK offers a fixed, stable return – ideally suited to risk adverse investors.
Just this week there were four significant announcements linking the square mile and the solar industry:
- Anesco secures £7 million RBS solar fund
- Solar and wind IPO raises £300 million
- Capitas finance announces ground mount PV fund
- Does Bluefield’s £130 million solar fund mark solar’s step into the mainstream?
Solar is moving away from attracting investors that are looking for a high returns. The drop in ROC combined with the maturing of the industry has attracted investors looking for much lower returns than before. As the technology becomes tried and tested, more funds will look to take advantage of solar as an asset class.
So is this the dawn of a new era for solar in the UK?
With the world’s finance capital on our doorstep and showing interest in UK solar the future seems bright.
