Sol Agora has secured R$800 million ($133 million) to finance 40,000 residential solar installations in Brazil. This funding, backed by an international bank, comes from its third Fundo de Investimento em Direito Creditório (FIDC). The company also has the option to increase the fund to R$1 billion ($167 million) to meet growing demand for solar project financing.
Expanding Solar Project Financing
Since 2022, Sol Agora has provided R$1.2 billion ($200 million) in financing and aims to extend another R$1.2 billion ($200 million) in credit next year, bringing its total funding to R$2.4 billion ($400 million).
This figure already exceeds Sol Agora’s original five-year goal of R$1.9 billion ($317 million). The company maintains a selective lending strategy, approving less than 10% of the R$1.1 billion ($183 million) in monthly credit requests to ensure financial stability and strong returns.
Brazil’s solar sector is competitive, with institutions like Santander, BTG Pactual, and Portal Solar also offering solar credit programmes. This competition helps drive innovation and makes solar financing more accessible, supporting the Brazilian government’s broader energy goals. The government aims to increase the share of renewable energy to 45% by 2030, up from 22% in 2022. Brazil also targets a 48% emission reduction by 2025 and aims to achieve net-zero emissions by 2050.
The Role of Sol Agora in Solar Expansion
Sol Agora’s new Fundo de Investimento em Direito Creditório (FIDC) offers institutional investors a structured opportunity with built-in protections against interest rate fluctuations. It is composed of senior and mezzanine risk classes, with the company investing 12.5% of its own capital in subordinated shares.
The FIDC operates as a closed-end fund with a nine-year term. For the first 12 months, it will acquire credit without interest or amortisation payments, followed by a second phase focused on repaying capital and interest. Investors can expect to see returns within three to three and a half years.
Banco Genial serves as the fund administrator, while Régia Capital—a joint venture between JGP and Banco do Brasil—manages the asset. With significant room for growth in Brazil, financing options like Sol Agora’s FIDC are essential for enabling widespread solar adoption. The company’s strong track record in credit operations helps bolster investor confidence.
Eduardo Solamone, Sol Agora’s Capital Markets Superintendent, commented: “The Brazilian market is still in the first phase of the electrification cycle, with the installation of solar power plants. The US and Europe have shown the way and their investment cycle is about five years ahead of Brazil, which means we still have a lot of work ahead of us.”
The Future of Solar Energy in Brazil
Brazil has embraced solar power as a critical part of its renewable energy strategy, with both households and businesses seeking cost-effective ways to install solar panels. However, the high initial cost of the setup remains a significant barrier for many.
Financial solutions like Sol Agora’s credit programmes are making solar projects more viable. The company has shown consistent growth in the renewable energy space, and its cautious lending approach supports long-term financial sustainability.
Brazil’s commitment to clean energy positions it as a key player in global sustainability efforts, with companies like Sol Agora helping to drive this progress through strategic financing. As the country continues to attract investment in its solar sector, this $133 million financing deal strengthens its path toward energy diversification. More accessible credit options will accelerate solar adoption nationwide, helping to ensure a cleaner, more sustainable future for the country.
