The investment
The financing model of PV Investments takes advantage of a positive financial leverage. Usually, the investment is split in 10-30% equity and 90-70% long-term credit.
Because of the nature of the projects, attractive credit conditions arise by the large credit volumes. Eventually, the future assets of the PV Plant itself may serve as the only guarantee required by the financial institution.
The investment model runs off in three phases:
- Investment phase (approx. 1-2 years)
- Cash neutral phase (approx. 10-15 years)
- Cash in phase (more than 10-15 years)
Investment Phase (1-2 years)
The investor finances the total expenses of the project. The contribution may be 10-30% from own funds and 60-80% financed by a long-term credit (approximately 10/15 year term).
Cash Neutral Phase (10-15 years)
The repayment of the credit takes place in a period of 10-15 years, including interests. Under certain conditions, the stately guaranteed yield makes possible to generate impressive positive cash flow from the very first year.
Cash in Phase (>10-15 years)
Once the credit is repaid, the investor keeps the positive cash flow of the yields regularly credited on its account. And this situation stands over the entire life span of the plant.
Photovoltaic modules, the most critical equipment of the plant, are yield guaranteed up to 25 years. However empirical values overpass this time frame substantially.
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