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Green Business with Banco BHD Léon
Two leaders in the Dominican Republic's solar energy industry, KAYA Energy Group and Banco BHD Léon, have teamed up to develop a financial product specifically for SMEs that wish to install solar energy. Here are the details:
FIXED INTEREST RATES FOR UP TO 7 YEARS
Your interest rate does not vary during the term of your loan and, depending on your preference, can be extended for up to 7 years. This fixed, longer-term loan improves your ability to predict current and future expenses.
100% OF PV SYSTEM COST
With 100% coverage, you pay nothing in advance. With a three-month grace period, your system will be installed and producing energy before the date of your first payment.
EQUIPMENT SERVES AS GUARANTEE
You can use up to 80% of the value of the solar system as collateral for the loan. And since the system is generating immediate monthly positive cash flow, the loan will not affect your payment capacity rating.
The following link will take you to a brief set of questions that will help us quickly and accurately develop a technical and financial proposal for your business.
Third-Party Investor Structures
If you are a larger client, you may qualify for one of our third-party investor structures, which have the advantages of being longer-term (up to 20 years) and designed so that you only pay for the energy produced by the system.
The on-balance financial structure is similar to a long-term loan. It's main advantage is that, by putting the system on your company's balance sheet, the project can take advantage of the Dominican Republic's investment tax credit.
It looks similar to a Power Purchase Agreement (PPA) because you only pay for what the system produces on a monthly basis. Indeed, instead using an interest rate to calculate your monthly payments, we use a price per kWh.
The off-balance structure is essentially a commercial lease. Here the system is owned and operated by KAYA and its financial partners.
In this case, the site owner makes monthly lease payments which are, as with the on-balance structure, calculated using a price per kWh. This is a great option for companies that cannot take advantage of the investment tax credit, such as tax exempt entities like Free Trade Zones, hotels, religious institutions, among others.
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