PV 180KW Financing with underlying PPA

Case
  • Installer agrees with his customer (Offtaker) a PPA for an energy efficiency solution that allows self-consumption of energy.
  • The installer needs financing to build and install the PV Plant 180 kW power without using up his banking credit lines.
  • Installer with proven track record and solid financials.
Solution
  • Crede leases the PV plant to the SPV on a long-term basis (9 years) to finance the installation, and places the installer (100% SPV owner) as a co-lessee.
  • Irregular rental payments adapted to power production (lower in winter and higher in summer) for optimize the electricity savings Crede long-term lease structure (9 years) to match long-term PPA (PPA duration 15 years).
  • Crede analyses the credit quality of the Offtaker. Crede pledges the credit claims arising from the PPA between SPV and Offtaker.
Result
  • The installer can account the contract off-balance sheet and does not compute CIRBE as it is a private contract.
  • PV plant allows self-consumption of energy and Offtaker saves c.30K/year compared to current energy consumption.
  • The estimations of the annual cost savings of the project repay the financial cost of the operation

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