While it is fine weather, mend your sail prepare solar power plants, while it is still snowing.

Winter is traditionally viewed as a period of pause in construction; however, it is, on the contrary, the best time to start preparing solar power plants. At least two months pass between a person coming up with an idea and the actual launch, and for large plants this period may last up to six months. So a business that starts the process in winter enters the season of high solar activity in March with a ready-made plant and can get maximum benefit from the first year of the plant’s operation. If the project is postponed until spring or summer, a significant part of the potential benefit is simply lost and the investment payback period increases.

The one who plans ahead receives strategic advantage

The process of preparing for the installation of a solar power plant consists of a number of lengthy steps. First, the company should do its “homework”: checking and assessing the state of the power grid and the possibilities of connecting the solar power plant, checking the roof or site for its ability to withstand the weight of the structures. Just one solar panel can weigh up to 32 kg, and the load will exceed 5 tons for a 100 kW plant. The next stage is design. This involves determining the optimal power of the plant, the correct location of the panels relative to the sun and the roof structure, and preparing technical connection solutions. Even after signing the contract, it takes time to purchase the equipment, which is mostly stored in warehouses in Europe, deliver it and go through customs clearance. Then there is installation and commissioning. So, it is worth starting in winter in order to reach the peak of generation. In parallel, at the stage of business design, it is necessary to determine the sources of financing for the solar power plant.

Solar power plant economy

Two key changes have occurred over the past three years. The cost of building a solar power plant has halved: from about $800 per kW in 2022 to about $400 today, while electricity tariffs for businesses have tripled and continue to rise. So the savings from solar power plants have become significantly greater, and investments have a faster payback.

It is possible to strengthen energy independence by additionally installing energy storage devices that provide businesses with stability during blackouts and uninterrupted critical production processes.

Bank expertise: cost estimate to launch, convenient loan terms 

Pivdennyi Bank has created and systematically develops expertise in energy projects: based on its own experience in installing solar power plants and practical customer cases. The bank’s focus is on financing solar power plants for business consumption, assistance in reducing electricity costs and increasing energy independence.

The Bank assists its clients with addressing the following concerns on the design stage:

• the optimal capacity of the plant depending on its energy consumption;
• the generation forecast and the level of future savings;
• the loan payback period, which is an average of three years.

The key idea of ​​the loan is repayment through savings, i.e. the solar power plant must move towards self-sufficiency. After installing the plant, a business turns the amount it previously spent on electricity into savings - and repays the loan out of those savings without additional costs for the company.

Understanding the entire process of building a solar power plant, the bank has developed lending programmes in partnership with key solar power plant installers in Ukraine, the terms of which take into account the terms of implementation of solar power plant projects:

• reduced interest rate for the first year of lending;
• grace period of up to six months – while the plant is being built and is not yet generating income;
• possibility of adjusting the repayment schedule for solar power generation;
• accelerated consideration of the loan application compared to standard SAREX lending projects.

This approach allows you to manage the payback of the project and plan the income from savings.

Also, the bank provides an additional option for partner loans: consultation on the business compliance with ESG requirements, which is becoming an important component of the modern competitive business environment.

Reliable suppliers and complex approach

Another advantage of Pivdenny Bank’s partner programme is that businesses not only receive financing but also access to reliable suppliers-solar power plant installers. All partners of the bank:

• have been operating on the market for over 10 years;
• install both small and large-scale industrial solar power plants;
• are suppliers of BloombergNEF Tier 1 equipment – ​​the highest quality standard in solar energy, which is used by international financial institutions;
• have their own engineering teams that perform inspections and assessments of the company’s power grids, design and technical supervision of the project.

For the client, this means minimising risks: proven quality, reliable suppliers, transparent pricing. And free basic design and initial inspection of energy networks is another bonus of the programme, which significantly reduces the start-up costs of the business.

If the business owner is only considering the idea of ​​installing a solar power plant and does not have sufficient expertise, the bank provides a full cycle of support at all stages, and the client will receive a comprehensive solution at minimal own costs.

For more information about partner programmes, visit our corporate centres or fill in an application on our website by clicking the link.