The International Finance Corporation, part of the World Bank Group, will invest in BV Bank to make financing for small-scale solar projects in Brazil. This joint venture aims at improving access to solar energy among consumers to aid in diversifying the growth of Brazil’s energy sources.
IFC Investment to Power Up Solar Energy Growth in Brazil
IFC is providing up to $150 million, five-year loan for the financing of solar projects for BV Bank. It will employ IFC’s experience in financing small-scale, residential rooftop solar panel installations throughout the country. This investment bridges the existing financing gap in the solar sector of Brazil, especially for distributed generation systems driving the nation’s growth.
Addressing the Solar Financing Gap
In 2023, DG systems constituted over 70% of Brazil’s solar energy capacity additions, rapidly propelling the country into renewable energy. In 2022, 78% of customers faced financing difficulties in engaging the solar project, which resulted in a major barrier to adoption. IFC will also attempt to reduce the cost of solar energy and increase access. Additionally, consumers will be provided with a capability for overcoming financial barriers in adopting this energy source.
Supporting Sustainable Economic Growth and Climate Resilience
Helena de la Torre, IFC’s regional manager for Financial Institutions – Brazil and Southern Cone, said, “We are pleased to work with BV to scale up financing for solar solutions. This initiative supports Brazil’s efforts towards sustainable economic growth and climate resilience, helping the country on its journey to becoming a global leader on climate issues.”
She added, “This investment is also important to drive the expansion of financing for solar DG projects in Brazil, encouraging other financial institutions to replicate the business model.”
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Strengthening Brazil’s Green Economy
This is a component of the IFC’s larger strategy to increase access to climate finance, especially solar systems. This initiative places it within the five-year World Bank Group strategy for Brazil: sustainability, competitiveness, and inclusiveness. The World Bank will position Brazil as a world leader in the transition of the low-carbon economy through this strategy.
Furthermore, IFC’s investment in BV Bank will boost solar DG financing in Brazil, inspiring other financial institutions to adopt similar models.