Sunshine Power - financing

	Financing
	Once the total investment for your solar project is calculated it is important to take a smart decision regarding the financial structur and the right financial partners. The decision about the right financial structure is about the debt to equity mix. A higher percentage of debt, called financial leverage, leads to a higher return on equity. This is because of the so called “tax shield effect”, as interest rates are fully tax deductible. Usually a higher percentage of debt is associated with a higher risk, especially in businesses with strongly fluctuating cash flows. In the solar sector, however, this risk of financial distress is very minimal, since governments subsidise produced energy with stable tariffs and since modern modules deliver a very stable and predictable output. For this reason, it is even possible today to finance solar project with 100% bank loans. In some cases it may be reasonable, however, to add 10% - 20% of equity. Sunshine Power has established strong partnerships and cooperates with major financial institutes that drive the solar economy. Sunshine Power can help you all matters related to financing your PV installation, this includes: Fully assessing the financial characteristics of your project Helping you to present your project in a way that is acceptable for banks Recommending suitable banks and private equity firms Supporting negotiations and structuring deals Please contact us if Sunshine Power can assist you in financing your Solar Project.