Without fanfare, Thailand’s Sustainable Energy Fair this summer revealed evidence of action by solar equipment suppliers to attack the most important remaining block to high growth in the solar rooftop market for commercial and industrial clients: finance for the capital investment required at the start.
- The other essential conditions for going ahead have already been met. After over 20 years of constant price reductions in panel prices, solar energy is now the cheapest source of electric power. Quality and reliability of materials are now secure and proven, after 30 years of successful use. The old objection that the sun doesn’t shine at night has been overcome by the advance of battery storage. And solar energy can improve energy security.
- But finance remains a block for organisations not accustomed to investing in non-core activities. Returns on investment from the small up-front cost of a solar rooftop are dramatically impressive, but generation and delivery of electricity have historically been managed by large utilities, and for decades, organisations have treated the high prices that utilities demand as an unavoidable cost of operation.
- The banking sector in Thailand does little to help. Restrictions on private sector borrowing are severe, reflecting the high level of consumer debt and spilling over to affect loans to commercial and industrial clients.
- Equipment suppliers, often from outside Thailand, are worried enough to begin to fill the finance gap. Suppliers need new markets, as the tariff and trade wars launched by the USA risk closing off the huge American market. Several suppliers are now discreetly offering finance for large equipment purchases, either through their own finance companies or through partners.
Two main models are so far available, normally limited to individual projects for buildings which have > 3000m2 of roof space. Although external finance inevitably reduces the savings which a solar rooftop can bring, it offers an attractive way of removing the straitjacket imposed by the lack of bank lending.
Panphos can help clients who need external finance with reliable information on reputable sources, as a step on your path to cost saving and sustainability. Contact customerservice@panphos.com or telephone 062-190-9627.
