Major German utility RWE and solar energy group Conergy have struck a deal to lease out solar systems for a monthly fee, hoping commercial clients will install the technology on factories, warehouses and offices to lower their energy bills.
Under the partnership, RWE will market solar systems with a peak output of between 50kWp and 200kWp to existing and new customers, while Conergy will design the plants, supply components and offer operations and maintenance services.
Reuters Newsagency reports no financial details were disclosed, but leasing has become an increasingly popular way of overcoming the set up costs for solar installations.“Conergy’s global strategy has moved to focus on overcoming the biggest barriers to the wider adoption of solar. Business customers want flexible finance options, and they also want investment certainty,” Conergy chief operating officer Alexander Gorski said in a statement.
The deal comes as RWE searches for new business opportunities as it labours under a €31.5 billion debt pile and tepid demand in its core European market.
Conergy, majority-owned by Miami-based asset manager Kawa Capital Management, said the service would initially start in Germany, where pilot projects have resulted in average energy cost savings of 10 per cent.
Conergy also said it had acquired a portfolio of rights to solar projects from British renewables group Lumicity that, on completion, would have a potential value of about €252 million.
In addition, Conergy said it would build a 21-megawatt peak (MWp) power plant in the suburbs of Bristol, western England, raising Conergy’s total capacity additions in the United Kingdom to 126MWp so far this year.
To finance further growth, Conergy said it had agreed a US$60 million bank guarantee facility arranged by Deutsche Bank and financed by Tennenbaum Capital Partners.
