Financing solar PV systems for residential customers

Criteria
1

Hello,

We are developing SBTs for a leading provider of residential solar power and energy storage solutions.

Whilst the firm would typically be considered a real-economy company, its business model is primarily concerned with the financing of 3rd party manufactured and installation of solar PV systems for residential customers, and the recovery of the upfront investment through energy performance contracting.

Given the company is financing electricity generation, we deem the SDA for electricity generation project finance to be the best-suited option for our client, however we are unsure if financing solar PV systems for residential customers can be considered as project finance under the criteria set by the “NEAR-TERM FINANCIAL SECTOR SCIENCE BASED TARGETS GUIDANCE”.

Could you please provide clarifications on this point?

2

Since the financing is linked to electricity generation in this case (whereas consumer loans are currently out of scope), I agree with your assessment that the SDA for electricity generation project finance could be the best-suited option to set targets here.