A solar power plant for an enterprise today is a way to reduce electricity costs, an investment in production stability, product cost predictability, and long-term business competitiveness.
However, even cost-effective projects require significant initial investments. That is why more and more Ukrainian companies are choosing a loan for a solar power plant or other SPP financing instruments that allow them to implement the project today without a significant burden on working capital.
Why does a business choose to lend to solar power plants?
For most enterprises, their own generation is a capital investment that should work for decades. Bank financing allows:
to implement a project without withdrawing significant working capital
to maintain the company's liquidity
to start saving on electricity immediately after the SPP is launched
to invest their own capital in the development of their core business
In fact, the enterprise gradually repays the loan at the expense of the savings provided by its own generation.
What projects do banks finance?
Today, Ukrainian banks are actively financing:
- commercial solar power plants;
- industrial solar power plants;
- rooftop solar power plants;
- ground-based solar power plants;
- energy storage systems (ESS/BESS);
- integrated solar power plant + ESS projects.
Of particular interest are complex energy solutions, as they not only provide electricity savings, but also increase the energy sustainability of the enterprise.
What does the bank evaluate before issuing a loan?
Banks analyze not only the company's financial statements. No less important are the feasibility study of the project, the forecast of electricity generation, the calculation of the payback period, the forecasted ROI, the quality of the equipment, the experience of the EPC contractor and the risks of the project implementation.
That is why professionally prepared documentation significantly increases the likelihood of a positive decision by the bank.
Why do banks pay attention to the EPC contractor?
A financial institution invests not only in the client, but also in the project itself. An experienced EPC contractor confirms that the technical solution is justified, the equipment meets international standards, the generation forecast is realistic, and the project will be implemented within the specified time frame. That is why banks are much more willing to finance projects implemented by companies with proven experience and a portfolio.
Accredited partnerships accelerate financing.
One of the key factors is the contractor's availability of partnership programs with banks. ETL Group is an accredited partner of many large banks that lend to businesses for energy independence.
With this approach, the client receives faster consideration of the application, an EPC partner already verified by the bank, comprehensive project support, consultations on choosing the optimal financing program and minimizing risks during the implementation of the investment project.
What benefits does the business receive after the project is implemented?
Financing a solar power plant allows the enterprise to obtain long-term economic benefits:
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Reduction of electricity costs
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Own generation allows to significantly reduce the purchase of electricity from the grid and reduce energy costs.
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Predictability of cost price
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The enterprise is less dependent on market fluctuations in tariffs and can plan production costs more accurately.
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Increasing energy independence
And the combination of a solar power plant with an energy storage system (ESS) allows to provide backup power for critical equipment, avoid expensive consumption during peak hours and increase production stability.
What to pay attention to before applying for a loan?
Before attracting financing, it is worth assessing:
- real electricity consumption profile;
- optimal power of the solar power plant;
- possibility of integrating the ESS;
- projected payback period;
- ROI indicator;
- bank financing conditions;
- prospects for scaling the energy system.
A comprehensive analysis allows you to create a project that will be attractive to both the bank and the company itself.
How does ETL Group help you get financing?
ETL Group has been implementing EPC projects in the field of renewable energy for over 15 years and supports clients from energy audit to commissioning of the facility. The team helps:
- develop an energy strategy for the enterprise;
- perform a feasibility study;
- calculate payback and ROI;
- prepare a package of documents for the bank;
- design and build a solar power plant and energy storage systems;
- provide service and modernization of the facility.
Thanks to partnerships with leading Ukrainian banks, ETL Group helps businesses implement energy projects faster and on more favorable terms.
Today, a loan for a solar power plant for business is a source of financing, as well as a tool for strategic development of the enterprise. Banking programs allow to implement SPP and ESS projects without a significant burden on working capital, to quickly switch to own generation and to reduce dependence on tariff growth.
In combination with a professional EPC contractor, high-quality equipment and a competently prepared financial model, lending becomes an effective mechanism for investments in the long-term energy sustainability of the business.
