Commercial and Industrial (C&I) Solar

Fast Growing, Cheaper and Reliable

Solar is the future of energy for African and Asian countries, which also have the highest solar irradiance. The distributed solar market is expected to add a capacity of 315 GW in the next 5 years, which is a 2.3x increase from the previous five years. 70% of this increase is expected to come from Commercial and Industrial (C&I) solar. C&I solar is generally is 20-30% cheaper than the grid and is reliable. As a private sector effort, C&I solar is nimbler and has fewer regulatory constraints that grid projects.

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SIMA’s C&I Green Bond

SIMA’s Canche structure with projected returns from 5% to 8% over its 10-year term with credit protections of 46% to 9%.

The core objective of the SIMA C&I Solar Green Bond is to help create and grow a new class of SMEs who are engaged in the C&I solar sector by providing packaged and customized financing to these SME developers, both for their corporate needs like working capital, inventory financing, construction/bridge financing and longer term project financing. The ambition is to show a path that will allow new channels of financing to open for this important segment which is complementary to mini-grids and the off-grid space.

Environmental, Social and Governance (ESG) and Impact

We will also use a ESG numeric scorecard that we are developing as an incremental implementation tool that is clear and measurable across the portfolio. We will strive to engage the developers in improving their compliances by offering technical assistance to strengthen their ESG practices. In other words, we are trying to create a sub-sector in the C&I space with deep implications for the industry.

SIMA will measure the impact created a) capacity of solar energy the bond helps establish b) number of companies helped to scale business c) CO2 emissions avoided d) Number of liters of diesel replaced by use of solar energy and e) employment generated by helping build scale.