The funds raised with these campaigns will be used to refinance 19 solar energy projects. The capital that Recap has invested will be used for further expansion in the Colombian market. 

Long term PPA (power purchase agreement) contracts will be signed between the promoter (Recap Solar Fund AB II) and the end clients (identified in the table above).  

The solar panels Installation, operation, and management will be performed by local partners under Recap’s supervision. The promoter will also be the owner of the solar panels, as well as the energy producer and trader. 

A PPA is a long-term agreement, for the purchase and sale of clean energy established between a renewable energy producer (in this case Recap Solar Fund AB II) and the entity that consumes electricity (in this example, the companies identified in the table above). The companies will therefore reduce their consumption of energy from the national electricity grid substituting it for the energy from the solar systems. 

In turn, Recap Solar Fund II AB will sell the energy from 5% to 30% lower than the client’s retail price, depending on the specifics of each project, after the installation of the panels. After an established period, the panels will become the property of the clients. In exchange for the benefits provided by the solar PV system, the client pays Recap Solar Fund II AB a monthly fee throughout the contract term. 

The fee is based on the prices charged by the local utility, over which the client is granted a fixed discount. In this sense, the client will always have a benefit from using the energy from the PV system. The energy that cannot be supplied by the PV system is bought from the grid.  

The fees paid by the client allow Recap to pay back its investors and covers the operations required for the development and management of the project. 

The promoter performs a credit analysis, recurring to Coface to all its end clients before installing the panels.