CEFC invests in large-scale commercial solar program
21 January 2015
The Clean Energy Finance Corporation (CEFC) is set to provide up to $20 million to global energy solutions provider ET Solar to accelerate the take-up of solar PV in the large commercial sector.
CEFC CEO Oliver Yates said the new ET Solar program would use a Power Purchase Agreement (PPA) model to attract Australian businesses - particularly shopping centres and other high energy users - looking to source solar power to reduce their electricity bills.
"There is huge scope to expand and deepen the solar PV market in the commercial sector," Mr Yates said.
"We see the PPA finance model as a way to remove the barrier of the upfront capital requirement which should enable many more Australian businesses to benefit from solar, reducing energy costs and lowering emissions."
The PPA model has proven highly successful overseas, with more than 75 per cent of new household PV systems in California using lease financing. Internationally, major businesses including Apple, Ikea, Toyota and supermarket giants Walmart, Tesco, Sainsbury's and Aldi have installed commercial scale solar PV systems.
CEO of ET Solar Group, Dennis She, said the leading smart energy solutions provider was dedicated to addressing end-user needs and would be offering a PPA product which would expand options available for Australian commercial customers.
"With this investment through the CEFC, the rollout of ET Solar's PPA model will help large energy consumers in industries like mining, shopping centres and manufacturing to significantly reduce their electricity costs," he said.
"As a Tier 1 solar company with a strong Research and Development Team based in Germany, ET Solar ensures the highest standard of PV systems, and we will be using top quality local distributors and accredited installers to deliver solutions for all types of businesses in Australia," he said.
Sam Khalil, Head of Operations and Business Development for ET Solar Australia said, "Our first PV systems installed through this program will involve large-scale commercial projects in Queensland, the Northern Territory, South Australia and New South Wales, with a rollout to all states around Australia."
"We currently have a commercial-scale carport structure solar project underway in Queensland which will incorporate solar energy into a shopping centre carpark, with similar construction planned in other states."
Under the CEFC financed program, ET Solar will own, operate and maintain a customer's solar PV system - varied to suit their energy requirements with system sizes ranging between 30KW and 2MW - and the customer agrees to purchase electricity at an agreed rate, which is lower than current electricity costs.
ET Solar will provide up to $13.3 million in equity, while the CEFC is providing up to $20 million in senior debt finance towards the program.
ABOUT ET SOLAR
ET Solar Energy Corp established its ET Solar Australia Pty Ltd subsidiary earlier this year to focus on commercial-scale and utility-scale projects development and investment for the Pacific region.
ET Solar is a leading international smart energy solutions provider with manufacturing headquarters in Nanjing, China, design headquarters in Munich, Germany, and more than 300MW of solar installations globally. Its business model is to offer a one-stop solution for solar PV project customers and investors, with green field development, project execution and delivery, project financing arrangement, project operation and maintenance, and asset management. With local sales and marketing subsidiaries and offices in Asia, Europe, North America, and South America, ET Solar has provided turnkey solutions and services, solar modules, and balanced PV system components to its customers in over 60 countries.
ET Solar was established in 2005 and worldwide, employs over 4000 staff and maintains a production capacity of over 1GW per year.
Media release, 2015