The three financing programmes offer products tailored to specific market segments, including up to $70 million for a SunEdison solar leasing programme which includes an option to sell the power under a power purchase agreement (PPA). Up to $20 million will support a programme by Tindo Solar offering a PPA product to commercial and residential customers. Finally, up to $30 million will go to Kudos Energy which is offering PPAs focused on commercial and multi-unit residential customers.
“By expanding the financing options available and introducing new financing models tailored for different market segments, we can help more individual households and businesses to make better use of our resources and save on their energy costs” said CEFC CEO Oliver Yates.
The new financing programmes are being brought to market using established, experienced and accredited installation companies and suppliers to provide the market with high quality outcomes. SunEdison Australia is working with local partners to originate, design, install, own, operate and maintain solar PV systems and lease them, or sell the power under a PPA (depending on the contract) to customers.
Solar leasing and PPAs have been available in California for nearly 10 years and 75 per cent of new solar PV home installations now use a leasing or PPA structure. This allows customers to buy energy generated from solar systems rather than purchasing the systems themselves, thereby eliminating a common barrier to solar adoption – the need for up-front capital. PPA programmes have been used in Australia for some larger-scale projects, but they have rarely been used for smaller businesses or the residential sector.
According to Pashupathy Gopalan, President of SunEdison Asia Pacific, Middle East and South Africa, the CEFC finance would enable the company to use its global experience to introduce a number of financing models to Australia, thereby providing an immediate cost-saving to customers and expanding the use of solar resources in the country.