Finnish Evli Bank has become the majority shareholder in Finnish solar company Nordic Shine, as the two companies combine to create the country's first ever solar investment fund, to expand the possibilities of distributed solar within the country.
Solar has yet to take off in Finland. A handful of rooftop systems and community solar projects make up the entire market, but with Finland's first ever solar investment fund for distributed solar being launched, solar deployment may be about to pick up.
The fund, EAI SOLAR I limited partnership, is being launched by Evli and Nordic Shine, and will offer property owners and tenants the opportunity to invest in distributed solar projects without releasing too much of their own capital. It is also open to investors, who are seeking a stable return on solar investments.
With existing experience in the market, Nordic Shine will take care of operation and maintenance of the PV arrays throughout the contract period. Major Finnish property management firm, Ovenia Group, has already agreed to offer the fund's model to its clients.
"Our service model enables transparent allocation of the benefits of solar power between the tenant and the owner regardless of property's lease agreement type," said Nordic Shine's partner Jussi Vimpari.
The aim of the fund is simple, it wants to increase solar deployment in Finland, and offer the public a means to adopt the clean energy technology. On top of that, it believes that distributed solar systems will help property owners reduce electricity costs, and reduce their environmental impact.
"The utilization of solar power in Finland has been slowed down by lack of financing alternative," commented Evli Alternative Investments Managing Director Tero Tuominen. "The fund offers a new finance and service model for distributed power production, which has substantially accelerated solar power investments."
Community PV projects already makes up a substantial 13% of Finland's entire solar power production. Outside of that, utility-scale PV is non-existent, as the largest installation to date is just 850 kW. However, this new fund is a step in the right direction, and may begin a trend of solar adoption within the country.
