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Solar financing

JALTECH’S SOLAR FINANCING SOLUTION

LONG-TERM SOLAR FINANCING FOR EPCS AND C&I ENERGY CONSUMERS

ABOUT THE FUND

Jaltech manages a Section 12B solar fund with approximately R500 million under management which is aimed at providing long-term funding to the commercial and industrial sectors in South Africa.

What sets Jaltech’s fund apart from competing solar funders is that Jaltech would fund the entire project, with no capital or security needed from the project/property owner (off balance sheet funding).

In addition, Jaltech can offer funding terms of between 8 to 20 years. The funding term will result in the annual financing payments being lower than the Rand value of the energy being produced, i.e. a positive cash flow position for the property/project owner from the start.

FUND MANDATE

The fund’s mandated to provide competitive funding terms for new solar installations or to refinance existing solar installations (which can include the addition of new batteries and/or solar panels).

The high-level mandate of the fund is as follows:

Jurisdiction:

South Africa only

Funding range:

R1 million to R75 million per project or group of projects

Funding term:

8 to 20 years

Focus:

Commercial, industrial, estates and body corporates

Type of funding:

100% project funding (i.e. no equity is needed from the project owner)

Funding rate:

Prime plus (risk dependent)

FUNDING RANGE

Jaltech offers EPCs and commercial and industrial energy consumers finance for solar projects valued from R1 million to R75 million. However, there is a key difference in how Jaltech finances projects from R1 million to R5 million and above R5 million.

For solar projects valued between R1 million to R5 million, Jaltech will only finance the solar project/s over 8 years and on a fixed rate basis.

Solar projects valued between R5 million to R75 million, can be financed over a period of up to 20 years (8 to 20 years) and on a fixed, output or consumption power purchase agreement basis.

JALTECH VS LARGE FINANCIAL INSTITUTIONS

Large Financial Institutions Jaltech Comments
Debt/project funding rate: Max 70% debt 100% project finance No requirement for an equity contribution when being financed by Jaltech
Rate: Prime plus 2% to 6% Prime to Prime plus 3% Jaltech’s rates can be as low as Prime (risk dependent)
Term: 5 to 7 years 8 to 20 years

A longer funding term reduces the cashflow requirements of the project owner

Deal turn around: 6 months plus 2 to 3 weeks If the necessary information is available, Jaltech’s deal team can quickly turn around a transaction
Deductibility of payments: Interest only All payments are tax-deductible All payments to Jaltech are tax-deductible
Funding: On balance sheet Off balance sheet Jaltech’s funding will be off balance sheet for the project owner
Section 12B deduction: Claimable by the project owner Claimable by Jaltech’s investors The Section 12B deduction will only be available to Jaltech’s investors

If you are interested in accessing finance from Jaltech, kindly complete the form below and a representative from Jaltech will contact you.

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