SPI Energy nails financing for 4.8MW DG project

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It did not disclose the terms of the agreement.

Upon completion, the project will annually generate 4 million kWh of electricity, according to an online statement.

“(The deal) speaks volumes about the strong support of the local banking industry and government agencies for clean tech companies, especially for distributed-generation (DG) solar projects,” said Xiaofeng Peng, chairman and chief executive of SPI Energy.

Although DG build-out has long been a government priority, the segment has failed to take off as quickly as initially anticipated, partly due to issues related to financing.

PV systems can be difficult to insure in China, as they depreciate over time, and many of the country’s major lenders tend to shy away from the relatively unknown developers that specialize in smaller DG installations.

In recent years, SPI Energy has led the way in offering Internet-based financing solutions for DG developers via its Solarbao.com investment platform.

The company is one of the most active DG developers in China. Last May, for example, it connected 12.8 MW of aggregated capacity in coastal Jiangsu and Shandong, as well as the landlocked, southeastern province of Jiangxi.

Although the Internet-financing sector is still evolving, online platforms such as solarbao.com — in addition to crowdfunding methods and peer-to-peer (P2P) lending — have been widely touted in recent years as a potential solution for DG developers struggling to secure capital.