Polaris solar PV net news: power station financial model is a general trend. In the profits of the industry chain pattern reconstruction under the background of plant is the most benefit from this solar cycle links with both high growth and high profitability. PV financial property is growing in the future, relying on the high return on investment (non-leveraged loans around IRR10%, 70% IRR15-20%) and gains a clear characteristic of power station similar to higher-yielding fixed-income products, securitization based, will stimulate innovation in business models and financing models.
Financial properties, photovoltaic power stations will increasingly
PV power station project and real estate business model is very similar to the building via selling and leasing after achieving a stable cash flow. From the development stage, distributed at a start early, around the year 2020 is expected to achieve parity (limit to get rid of subsidies), the utility industry is in rapid growth stage, much as the real estate industry for more than 10 years ago. Various modes of financing innovation will bring a steady flow of capital to this high growth industry support, various types of companies can find suitable sources of finance. At the eve of the outbreak of financial tools will be the catalyst.
Second, the various financing models will be promoting the development of power plant operation industry
1, bank loans: the main source of finance for distributed are expected to gradually let go of
Banks remains the main financing of photovoltaic power stations, but the Bank distributing loans has not been released, also cannot accept the station receipts as collateral for loans, must be real collateral. Distributed the financing bottleneck lies in its operational risks above the ground, the three core issues are effectively addressed, problem will be solved. Recent Bank research focuses on distributed project risk management and control, with the involved insurance policies and rules clear, bank loans are expected to gradually open up.
2, increased + convertible bonds: for domestic market, in particular private operators
Private enterprises in terms of debt financing compared with State-owned enterprises is not dominant, but institutional flexibility, innovation and execution compared to state-owned enterprises have certain advantages, flexibility and innovation of business model relying on the earnings release, performance, combining the advantages of domestic capital markets have higher valuation than the overseas (particularly growth stocks) and at a higher price to raise equity release profits increase stock prices, and equity financing, achieve financial growth.
3, all the chip: one way to solve financing, but short-term becoming mainstream
All to raise an equity financing, February 2014 joint PV testing the waters to raise domestic models are solar products contact first step. After combined PV in the first project, promotion plans in the second half of the country. United States Mosaic also PV raised platform, raising more than $ 6 million since its establishment in May 2011, more than 18MW to project financing. Chip mode is:
1) power stations financed on a large scale, but before you raise relates to science and technology, film financing and technology projects are small scale;
2) arrested for illegal fund raising, no clear legal definition;
3) lack of security, project risk, and investors to the rights of recourse, the ability to influence wholesale funding.
4 financial channels, Internet: or subvert the industry landscape, at present in the exploration phase
Media reports in early 2014, the company plans to introduce financial products treasure on a regular basis, photovoltaic power plant assets or included in the product scope of investment, if successful, PV financing Subversion change will occur. Power plant as one of the most stable investments, financing is very suitable for the Internet channels. We expect that power plant operators are expected to work together in the future Internet giant, to 20 power stations charging right pledge to launch financial products, pricing a percentage higher than the bank deposit rate in the same period, security through the rehabilitation funds, insurance and bank credit solutions. Current operators are still in preparation and exploration, but will become a trend in the future. For the public, Internet financial to provide a convenient way to invest indirectly in power stations, so dispersing individuals may also enjoy power station operating income, promoting photovoltaic entered the era of national investment and sharing. New trading platform will enhance the liquidity and attractiveness of the PV power plant assets. Trading platform of distributed PV financing chain, can not only serve as early fund-raising platform, is completed can also serve as asset transfer platform, and services such as insurance, guarantee an effective organization, become the chain’s central nervous system. Meanwhile, emergence of trading platform, will strengthen photovoltaic Internet finance/raising the liquidity, passion and enthusiasm of ordinary citizens to participate in investment.
5, lease financing and trusts/funds channel: high interest rates, suited to the rapid expansion of enterprise
Leasing company for construction and operation of the power station provides direct rent and sale and rent-back service, Eicon Technology cooperation with the blessing to leasing or renting, for example, considered rental charges and fees, is expected to cost around 10%, with higher interest rates. But this class assets securities of means can improve power station project of financial lever proportion (II times added lever), upgrade funds using efficiency, activate power station assets, on power station operators breakthrough financing bottleneck has important meaning, domestic of case is in the electric voted group its of Shanghai thaw joint rental on in the electric voted Yunnan subsidiary of 20MW ground power station carried out has straight rent business, love Kang technology will holds 80% equity of subsidiary green haibeixiang 65MW power station assets sold to Fu can rental, which again put assets atavistic to green haibeixiang operation.
Three, the insurance coverage will stabilize electricity fluctuation risks, is the basis of securities
Insurance is mainly being distributed photovoltaic power plant. In early June 2014, anbang property insurance to the China insurance regulatory Commission had submitted a new PV industry insurance filings involving types of PV electricity, yingdataihe, Jardine and trust are also trying. Sound insurance system can reduce the risk of operator, eliminating banks some of the concerns, is the basis of PV asset securitization.
140kw distributed items to hang Yu solar energy purchased the policy, for example: the warranty period is 12 months contract in the range of two, first for material damage, the second for extra expense insurance. Material damage risks to the whole PV system losses, loss and damage insurance, premium insurance insurance is electricity. Insurance is based on the electric power Research Institute issued a report reference on the basis of the qualification, evaluation of the project’s annual output of 170,000 kWh. Insurance description of insurance compensation for additional costs for: If the annual energy output does not meet reporting Evaluation Agency of the year 90% of power, the insurer is liable for the additional costs, in accordance with the compensation of 3 Yuan per kilowatt per day (April 1 to September 30) and 5 (from October 1 to March 31), limits for 73,000 yuan. Premiums for material loss of some 1700 Yuan, and extra expense insurance 555 Yuan. By Ding and the insurance coverage.
Electricity production reveals power of insurance proceeds. According to 190,000 tariff revenues during the first year, except in extreme cases, 90% of electricity insurance limit of indemnity and 73,000 Yuan reveals 171,000 tariff revenue. Assuming power station operational net interest 30% expected 57,000 and 133,000 yuan in net profit, costs (including financial charges, depreciation and maintenance costs), and after joining the insurance cost up to 135,000 yuan, 60-90% ‘s actual capacity to achieve the minimum 36,000 yuan in net profits, lock the expected 63%.
Four, the domestic PV market to be innovative, private enterprise of high value-added
Analysis of the domestic market can be seen upstream of solar PV market is divided into manufacturing and development operations into two parts and raw materials, downstream power station development and operation links participants have three classes:
First is to traditional power generation Group of industry-led national team, including the “five-small senior” generation Group (Huaneng group, China Datang Corporation, China guodian, guodian group, China power investment group, State power, guohua electric power, China resources power, China Guangdong nuclear) as well as new energy, energy saving and environmental protection, the Group of the three gorges in China Aerospace electromechanical;
Type II is a low-cost financing channels and strong ability to develop projects of State-owned enterprises and private enterprises, including GCL-poly, Lutheran group, chint group, Changzhou shunfeng photovoltaic PV, Zhen FA new energy, Shaanxi nonferrous metal holding group, Zhejiang jinggong steel structure, new groups, and so on;
Third way is using the project to develop product driven sales and revenue growth of private businesses, including technology, hareon, Eicon Technology, Crystal energy, Sun power, Trina, ja solar, TBEA, the third enterprise in the abundant cash flow will also consider long term plant operation and management.
In the short term, funding and good operating profit level of first class traditional power plant, bank loans with higher qualifications, banks with high credit ratings, making power generation companies can apply for credit support link get commercial banks and policy banks support. In the long run, through the asset securitization in the power generation group guarantees safety and without lowering the credit rating of the premise to solve Fund bottleneck problems that may arise in the development of and further improve its financial structure.
Second category of State-owned enterprises and private enterprises can keep pace and power group in the downstream market. This company’s main business is usually capital intensive, and cash generated by the business can bring stability, with good qualification and a good bank credit rating of bank loans, so you can apply for credit support links are commercial banks and policy banks support. In the long run, these State-owned enterprises and private enterprises has entered the mature stage of the main business, profit growing space is limited, thus selecting PV power plant operational links as new profit growth point, must therefore be fully leveraging the capital market, by way of splitting up downstream market, to enhance confidence in the capital markets, and asset securitization, address funding needs that may arise in the course of development.
Private enterprises in the downstream market is the most flexible of the third kind, for the innovation of asset securitization mode mentioned previously are most active. We determine the business model innovation in the enterprises most likely to occur in the third class, the highest acceptance of asset securitization, rose more than expected future performance possibilities.
Original title: “dry goods” innovative models for financing solar PV power plant secrets