Conergy, a solar photovoltaic service and solution provider, has launched its Conergy Fund I program. The program, which provides financing to large-scale construction projects in the United States, makes the use of and savings from solar power a possibility to businesses.
With an initial target volume of $100 million and backing by Conergy’s main investor, Kawa Capital Management, The Conergy Fund I provides financing for solar power plants and qualified commercial projects with renewable energy capabilities between 500 kilowatts and 25 megawatts of power. The fund streamlines the financing process by managing the financial analysis, credit rating, administration and finance, billing, and collection of power purchase agreements (PPAs) on behalf of the project.
“The Fund is ideal for mid-to-large size organizations such as municipalities, school districts, utility companies, and investment-grade corporations because the savings achieved last for decades,” says Anthony Fotopoulos, CEO of Conergy Americas. “Not only are these entities reducing energy consumption, but the fixed energy prices secured through the PPAs are significantly lower than market prices for conventional grid power, providing additional savings to the end-user.”
Access to competitive financing that can monetize local and federal incentives is a key barrier to the widespread adoption of solar photovolatics (PV) via PPAs – only about 40 percent of commercial buildings or power plants are able to secure this financing. The fund bridges this gap by removing the funding barrier that has historically hampered organizations from installing photovoltaic (PV) systems on their facilities.
Through The Fund, Conergy and its partners also provide project development and engineering, procurement and construction (EPC) services, including engineering, design, and subsequent operations and maintenance management.
Kawa Capital Management acquired Conergy in August 2013 to create a globally unique player in the solar energy industry. Conergy’s expertise in providing complete solar energy solutions and Kawa’s established financial and management strategies were the groundwork for the Conergy Fund I program and will serve as the foundation for future financial solutions in the US electricity market.
“The Conergy Fund I program is the first step in a long relationship with Kawa. We already have five projects in the United States utilizing The Fund and expect to develop and acquire projects in other growth markets in 2014,” says Fotopoulos.