Banco do Nordeste has been using a credit line from Constitutional Financing Fund of the Northeast (FNE) to include now also residential solar. The bank says using the FNE credit line, it has invested over BRL $8.5 billion ($2.21 billion) to support renewable energy projects in the business sector. Pictured is the skyline of Brooklin Novo in Sao Paulo, Brazil. (Photo Credit: Leandro Centomo/www.goodfreephotos.com)
- Banco do Nordeste has started financing residential solar power projects with effect from December 2018
- So far, it had been funding renewable energy projects for commercial and industrial segment including rural enterprises, cooperatives and associations
- Funding for residential solar installations will be capped at BRL $100,000 ($26,000) with 8 years to repay the loan and another 6 months of grace period
Brazilian bank Banco do Nordeste (BNB) has started financing residential solar projects, expanding its scheme to this segment from a previous policy of funding solar only for renewable energy systems for commercial and industrial segments, including rural enterprises, cooperatives and associations. The bank has been doling out funds from the Constitutional Financing Fund of the Northeast (FNE).
With effect from December 1, 2018, residential solar installations, including those for condominiums, will be able to access FNE’s credit line. BNB will finance up to 100% of a project, with a limit of up to BRL $100,000 ($26,000). Beneficiaries will have 8 years to repay the loan, with the grace period going up to 6 months.
If the amount is up to BRL $50,000 ($13,000), necessary guarantees will be added to the sale of the equipment. Any amount above this will need real guarantees and disposal of equipment.
Using FNE’s credit line, BNB has become one of the main financiers of renewable energies in Brazil, having invested over BRL $8.5 billion ($2.21 billion) to support projects in the business sector.
“With this achievement, we have completed the service cycle for all players interested in sustainable energy,” said BNB President Romildo Rolim. Adding, ‘Only the individual was missing, but from now on, this part of the public will access the FNE Sol with the most attractive interest rates in the market starting at 0.39% per month and plots equivalent to the projected reduction in the energy bill, after the implementation of the compensation system.’ Details about the scheme are available on the website of BNB.