Picture: SUNDAY TIMES
Picture: SUNDAY TIMES

Investec Bank has become the go-to funding source for the US roof-top solar industry just two years after the bank entered the market.

Investec arranged $880m in debt-financing for roof-top solar developers and financiers in 2016.

Financing for roof-top solar is underpinned by thousands of small contracts with consumers. While the debt is tied to strong individual credit scores, banks have favoured big solar farms because they generally have contracts with investment-grade utilities.

Investec had filled the gap by focusing on the roof-top industry’s unique financing needs, said Ralph Cho, the bank’s co-head of power & infrastructure in the Americas.

Investec gained market share as roof-top installers and financiers began looking increasingly at bank debt to finance growth.

Investec has "carved a good niche in this space", said Thomas Plagemann, chief commercial officer at Lehi, Utah-based Vivint Solar.

Bloomberg

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