EX-IM Bank USA FInancing for Solar Projects
Ex-Im Bank offers favorable financing options to facilitate the export of U.S.-produced renewable energy goods and services. These financing options, and Ex-Im Bank’s commitment to expanding its portfolio of renewable energy financing, make Ex-Im Bank an attractive source of financing for international companies seeking to purchase U.S.-made renewable energy products and services.
Ex-Im Bank direct loans to foreign buyers are an efficient source of financing for international buyers of U.S. renewable energy goods and services. Loans made on a limited recourse project finance basis are typically to a special purpose vehicle borrower, and repayment is made from the project’s cash flows. Financing is available for up to 85% of U.S. content and up to 30% of local costs of the export contract value. The buyer must provide at least 15% of the cost of the contract, but this may be borrowed from another lender or the exporter.
In 2011, Ex-Im Bank authorized seven solar projects in India for a total of nearly $180 million. Despite the increased demand for solar energy created by India’s National Solar Initiative, the unavailability of commercially feasible long-term financing made Ex-Im Bank support essential to get these projects off the ground. Among the projects financed by Ex-Im Bank was a direct loan of $84.3 million to Dahanu Solar Power Pvt. Ltd. for the purchase of advanced thin-film solar panels from First Solar Inc. of Perrysburg, Ohio and other U.S. exporters. These modules will be used in the construction of a 40 MW photovoltaic power plant in Rajasthan, India.