IDB Invest supports the growth of the distributed solar energy market in Mexico
IDB Invest, a member of the IDB Group, provided financing in Mexican pesos for the equivalent of $15 million to Bright Mexico Solar Holdings II, a subsidiary of Bright Exchange SAPI de CV (Bright), to develop a portfolio of residential photovoltaic solar energy projects. The deal will support the growth of the distributed solar generation market in Mexico with Bright, the leading residential solar company in the country.
The financing will accelerate the deployment of a portfolio of more than 2,500 residential solar rooftop power systems, with a generation capacity of over 8MW and producing zero emissions. It is expected that approximately 175 GWh of clean energy will be supplied to the power grid and will displace the equivalent of approximately 5,700 tons of carbon dioxide each year.
Bright designs, finances, installs and operates small-scale solar rooftop power systems that are less than 50kw. Bright leases the systems to its residential clients, a service that generates a minimum expected savings of 20 percent in their electricity payments, by substituting energy consumption from the power grid for the energy generated by their rooftop solar power system.
IDB Invest’s financial package, which has a 13-year tenor and is provided in local currency, consists of a loan equivalent to $10 million of its own funds and the equivalent of $5 million of blended finance mobilized from the Canadian Climate Fund for the Private Sector of the Americas (C2F). The financing also includes a guarantee and technical assistance from the Clean Technology Fund (CTF) and a subordinated loan from MGM Sustainable Energy LP.
Through the loan mobilized with the C2F, IDB Invest’s financing will help Bright implement a plan to increase gender equality through financial incentives. This plan helps lower interest rates, based on the results of actions designed to encourage the recruitment and participation of women in technical and engineering roles.
The deal potentially contributes to five of the United Nations Sustainable Development Goals: Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).
IDB Invest maintains its commitment to renewable energy as an industry capable of generating economic and social growth in a sustainable way. In the face of the adverse circumstances caused by the COVID-19 pandemic, IDB Invest is providing financing to projects that seek to open new opportunities and contribute to the fight against climate change.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Bright is the leading residential solar company in Mexico. Founded in 2014 with the goal of rapidly growing distributed solar generation in Latin America, Bright continues to grow, and expand its offering to be able to serve more customers throughout Mexico. Bright’s innovative model simplifies the process for going solar, empowering its customers to start enjoying the benefits of going solar faster with the comfort of Bright’s market leading energy guarantees. Bright’s unique business model provides clients with the software tools and the financing they need to transition to clean energy with high quality solar equipment at no upfront cost. Since its founding Bright has served over two thousand customers throughout Mexico. Bright is now partnered with some of the largest fortune 500 retailers to accelerate customer awareness of Bright’s solar service throughout the country.