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H2020

PV FINANCING Report Summary

Project ID: 646554

Periodic Reporting for period 1 - PV FINANCING (PV FINANCING)

Reporting period: 2015-01-01 to 2016-06-30

Summary of the context and overall objectives of the project

Feed-in tariffs (FITs) have been the fuel for successful solar PV growth stories in basically every one of today’s large solar markets. First in Europe, now in China and Japan. The US is the only exception – backed by tax credits and net metering, leasing has become a key means of financing residential solar systems there. With many European countries phasing out FITs, the simplicity of selling solar power will be gone; and without reliable and fair returns, most real estate and homeowners will not invest in PV anymore. In post-FIT times, solar companies and/or electric utilities in partnership with financial institutions will have to come up with suitable business models and financing schemes for PV investors in order to continue the success story of the FIT era.

The main goal of PV Financing is to successfully evolve those business and financing models, to disseminate them among stakeholders, to shape the necessary policy framework and to help removing barriers that prevent the models from realization. The project covers six European countries including Austria, France, Germany, Great Britain, Italy, Spain and Turkey and focuses on the residential, the commercial, the public and the industrial sector.

At the same thime, PV Financing aims to help stakeholders from specific application segments with the implementation of PV projects based on the suitable PV business models while applying innovative equity and debt financing schemes. The availability of financing for PV projects based on the business models shall be increased and the transaction costs shall be decreased by educating investors, commercial banks and insurance companies on the PV business models and their risks. The methodology includes qualitative research, including the analysis of the business models and financing schemes, as well as interviews with relevant stakeholders of the financing and policy sector.

The added value of the project includes the provision of practical solutions on how to develop the photovoltaic sector in the seven countries despite the current legal challenges identified, giving also advice on how to finance them. This will be described in the European implementation guideline – in a generic way- and in the national implementation guidelines. On the other site the project aims to assess the policy sector, giving advice on which policy needs to be changed or adapted in order to increase the deployment of PV.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

"Currently the project is more than halfway completed. In this first stage of the project the research conducted has focused on the suitable business models and financing schemes identified in the seven implementation countries for the development of PV. The results are reflected in fact-sheets, guidelines and in a cash flow model tool. Additionally, the previous PV Grid Database, serving now as the PV Financing database has been updated and linked to the PV Financing website (this is the first of two updates). The results of the business models and financing schemes have been added to the database. All the results have been disseminated through the project website, twitter, conferences, workshops, mailings and newsletters at national and European level. Besides this, the first draft version of one of the main deliverables, "the national implementation guidelines" have been submitted to the commission. Currently the NIP (National Implementation Partners) are reviewing the guidelines with experts and the printed final version will be submitted at the end of September 2016.

The next steps include the development of the main deliverables of the project which include European implementation guidelines, the national contract templates for the execution of the models as well as the European and the national policy advisory papers. In this second and final stage of the project, PV Financing will go a step forward and include the proper solutions to overcome the barriers identified for the development of PV in the financing and policy sector.

The dissemination tools for these deliverables comprise besides the tools mentioned in the first stage, also the organization of webinars and workshops. The last one will be targeted to the financing and policy community at the national and at the European level. In the financing workshops the business models as well as the barriers identified and their possible solutions will be introduced to private investors and decision makers in banks and insurance companies, allowing them to include these results in their decision process with regards to new investments. On the other site, the workshops focused on the policy sector will assess what political framework for the application of the business models is required and which barriers slow down the PV expansion."

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

- Replicability: the outcomes of the project can be used in various EU- and Non-EU countries, since some generic documents will be developed. This is the case of the implementation guidelines and the advisory papers. Additionally, the experience of the seven national implementation counties, which have a very different financing and policy environment, can support other markets not included in the project to adapt the results according to their needs.

- Socio-economics: the results of the analysis of the financing schemes and business models will enable the user (in the different application segments of the project) to develop PV projects. This will be achieved through the description of the advantages (specially the economic ones) that they have with the implementation of the business models for the development of PV. Additionally, the current legal and financing conditions that hinder the development of PV as well as the possible solutions and barriers that have to be overcome will be explained.

- Environment: the development of PV will contribute to the European and national climate and energy transition goals.

- Market Transformation: the identification of the economic and policy barriers and their possible solutions will help to evolve the PV market in the seven implementation countries.

- Policy: the project aims to identify and to analyse the current policy barriers that hinders the development of PV in the countries. With these results, the consortium will assess the policy sector, giving the advice on which policy needs to be changed or adapted in order to increase the development of PV

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