Soltec, a single-axis solar tracker firm, secured €3.6 million (~$3.8 million) in project financing, to which €550,000 (~$590,000) from local communities will be added for the construction of a 5.6 MW solar project in Spain.
The financing agreement was reached with Triodos Bank for constructing and operating a photovoltaic installation in Totana (Murcia).
The financing includes senior debt financing combined with investment from local communities in the same project through a crowdfunding platform for constructing the Totana IV photovoltaic solar plant. Additionally, a range of investment options is established for local communities, ranging from €500 (~$536) to €150,000 (~$161,000) euros.
The facilities will sell the generated energy directly to the electricity market, except for the 12 years when it will be under the auction economic regime, receiving a fixed price of €54 (~$57.80) /MWh that will vary by 5% depending on the market price.
Raúl Morales, CEO of Soltec, states that “this collaboration is a great opportunity to continue working and enhancing the strength of our business model, which was born with the purpose of creating a clean, sustainable and fair world based on the efficient production of photovoltaic energy. In addition, for us it is fundamental to give neighbors and citizens the opportunity to be part of our projects, being the crowdfunding platform an effective and accessible formula for everyone.”
The legal and technical advisors for the operation were the ONTIER law firm and the technical consultancy of OCA Global.
According to Mercom’s 9M and Q3 2023, Solar Funding and M&A Report announced large-scale project funding in the first nine months of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.
Recently, Opdenergy, an independent renewable energy producer, closed a $252 million project financing package for two solar projects in the U.S. The first solar project, “Blake,” located in Jefferson County, West Virginia, has an installed capacity of 100 MW. The second solar project, “Elizabeth,” located in Allen Parish, Louisiana, has an installed capacity of 160 MW.