Brazilian solar fintech Solfácil raises $ 30 million

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SAO PAULO, June 23 (Reuters) – Brazilian solar finance firm Solfácil has raised $ 30 million in a funding round led by QED Investors LLC and involving Valor Capital LLC, chief executive Fábio Carrara told Reuters.

Founded in 2016, Solfácil is the first fintech company to focus on solar energy in Brazil, where it finances the installation of solar panels and photovoltaic equipment in homes.

Discussions over alternative energy have gained momentum in Brazil as an ongoing drought has raised uncertainties over the future of hydropower, the country’s main source of energy.

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Solar energy offers a solution to the current crisis in Brazil, which is the best candidate in the world for the expansion of this sector,” said Fábio Carrara, founder and president of Solfácil. “But funding is the biggest obstacle.”

The installation of solar panels in Brazil increased by 70% in 2020, generating 7.5 gigawatts and placing Brazil among the top ten global markets for solar energy.

But only 0.6% of homes have the technology installed, Carrara said – far fewer than in countries like Australia, where up to a quarter of the population has.

“Even with interest, people are realizing that the investment pays off in a few years and that they will have the equivalent of two decades of energy virtually for free,” Carrara said.

Solfácil seeks to increase its annual solar loans from 700 million reais ($ 141.28 million) to 2.5 billion by 2022. To manage the growing demand for financing in the sector, Solfácil has also released a fund of receivables of 500 million reais.

It plans to use its funding to double its workforce, invest in technology, provide working capital to its suppliers, and expand its reach to rural businesses and producers.

($ 1 = 4.9548 reais)

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Report by Aluisio Alves; edited by Barbara Lewis

Our Standards: Thomson Reuters Trust Principles.

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