Renewable energy equipment distributor Segen and French bank BNP Paribas have launched a programme to finance commercial and industrial (C&I) solar installations in the UK and Germany.
Under the programme, Segen customers will be able to acquire and install solar and energy storage projects through Segen’s list of C&I installers. Customers will pay no upfront costs, instead paying for the projects over their operating lives, and once payments are complete, the customers will have full ownership of the projects.
In theory, this approach will provide benefits for both installers, which gain access to Segen hardware at zero cost, and customers, which can sidestep the high installation costs associated with installing new solar and storage projects. Figures from UK trade association the Federation of Master Builders note that installation costs can account for 10-20% of the total costs incurred over the lifespan of a solar system, and reducing this figure was a priority for the leaders of Segen and BNP Paribas.
“Our installer network has been asking for integrated financing solutions that make the transition to renewable energy more affordable for their customers,” said Nicolas Niedhart, group chief financial officer at Segen Global, who signed the agreement at this year’s Intersolar Europe event, held last month in Munich, Germany.
“This partnership represents a significant advancement in accelerating the clean energy transition.”
The companies noted there are plans to expand the scheme across Europe, but provided no further details on how or when this expansion would take place, or if it would be dependent on the success of the initial scheme in Germany and the UK.
The news follows a number of financing announcements in the UK solar space, covering projects at a range of scales. This week, developer Aura Power secured financing for its 49.9MW Grimsby Solar Farm from Dutch bank Rabobank, while AMPYR Distributed Energy has secured a £170 debt facility for its solar and energy storage projects in the UK.
More broadly, this year’s Renewables Procurement & Revenues summit, organised last month by Solar Media in London, saw delegates discuss the role of the power purchase agreement (PPA) in securing finance for solar projects, and how the mechanism could be in need of further refinement.
