CEFC invests $20m in large-scale commercial solar

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.

“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% of new household PV systems in California using lease financing. Internationally, major businesses including Apple, Ikea and Toyota, and supermarket giants Walmart, Tesco, Sainsbury’s and Aldi have installed commercial-scale solar PV systems.

The 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 car park, 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 30 kW and 2 MW - 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.