Sol Agora has obtained R$800 million ($133 million) to finance 40,000 residential solar installations in Brazil. The funding, supported by an international bank, comes from its third Fundo de Investimento em Direito Creditório (FIDC). The company may increase the fund to R$1 billion ($167 million) to address the growing demand for solar project financing.
Expanding Solar Project Financing
Sol Agora since 2022, has granted R$1.2 billion ($200 million) in financing. The company aims to provide R$1.2 billion ($200 million) in credit next year. This will bring its total funding to R$2.4 billion ($400 million).
This figure exceeds Sol Agora’s original five-year goal of R$1.9 billion ($317 million). The company follows a selective lending strategy. It approves less than 10% of the R$1.1 billion ($183 million) in monthly credit requests.
This approach ensures financial stability and strong returns. Brazil’s solar sector faces competition from banks and fintech firms. Institutions like Santander, BTG Pactual and Portal Solar offer solar credit programmes.
Competition drives innovation and makes solar financing more accessible. The Brazilian government aims to increase renewable energy to 45% by 2030. In 2022, the share stood at 22%. The country also targets a 48% emission reduction by 2025. Brazil also 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) will provide institutional investors with structured opportunities. The fund features protections against interest rate fluctuations. It includes senior and mezzanine risk classes, with the company investing 12.5% in subordinated shares.
The FIDC operates as a closed-end fund with a nine-year term. The first 12 months allow credit acquisitions without interest or amortisation payments. The second phase involves capital and interest repayment. Investors can expect returns within three to three and a half years. Banco Genial serves as the fund administrator, while Régia Capital, formed through a joint venture between JGP and Banco do Brasil, manages the asset.
Brazil has significant room for growth. Financing options like Sol Agora’s FIDC enable widespread solar adoption. The company’s track record in credit operations strengthens 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 goals. Households and businesses seek cost-effective ways to install solar panels. The high cost of initial setup remains a barrier for many.
Financial solutions like Sol Agora’s credit programmes make solar projects viable. The company has demonstrated consistent growth in the renewable energy space. 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. Companies like Sol Agora drive this progress through strategic financing. The country continues to attract investments in its solar sector. The $133 million financing move strengthens Brazil’s path toward energy diversification. More accessible credit options will accelerate solar adoption nationwide. This shift ensures a cleaner and more sustainable future for the country.