We are witnessing a revolution in renewable energy. There is an urgent environmental need to replace fossil fuels with clean alternatives. Companies are adapting to this new reality, and at Kaizen Consulting, we offer bespoke solutions to finance their own solar photovoltaic installations with minimal effort. Spain’s annual sunlight makes it the best place in Europe to amortize solar panels: a competitive advantage that should be leveraged.
The PPA Model: Installations Without Initial Investment
José Roca, Managing Partner of Kaizen Consulting, explains, “There is a way to finance a solar photovoltaic installation for any company without them having to spend anything: if they have space on the ground or on the roof of their facility for solar panels, we can secure investment funds that will pay for the installation in exchange for operating it for a few years. This way, they will reduce their electricity bill, consume clean energy, and after this period, the installation becomes the company’s property permanently.”
The Power Purchase Agreement (PPA) model is an agreement between the company where the solar photovoltaic plant will be installed and the company that will finance and initially operate it. Both parties agree on the terms and benefit from the arrangement. The agreement commits the host company to purchase a specified amount of energy from the generating company. The duration and price of the energy are also agreed upon. This results in savings from day one because the energy produced by the plant for the industry’s own use is more economical. After the agreement expires, the photovoltaic installation becomes the property of the host company and can be utilized throughout its useful life.
José Roca explains that Kaizen Consulting has connections with a range of Spanish and international investment funds “interested in financing industrial self-consumption solar photovoltaic installations in Spain, specializing in these types of projects with proven experience.” The specific possibilities of each photovoltaic installation are assessed to calculate the terms and conditions of the agreement that can benefit both parties.
Leasing, Renting, and Other Financing Options
“Any company looking to establish a solar photovoltaic park for self-consumption also has many other options available,” explains José Roca. “At Kaizen Consulting, we specialize in providing financial solutions for any need, and in the field of renewables, the range is very broad. From traditional banking to renting, leasing, and, of course, the previously mentioned PPA model. Tailored and flexible solutions, in terms of both duration and amounts, so that the company investing in solar photovoltaic energy now can find the model that suits them best.”
José Roca also highlights that financing for these solar photovoltaic plants “can be off-balance-sheet and CIRBE, through alternative banking or funds that assume the investment, management, and even project risk in some cases.”
For more information on tailored financing solutions for your company, contact Kaizen Consulting, and we will analyze your specific case to provide you with appropriate solutions.
