PV Financing is structured in seven Work Packages (WP):
- WP1 is focused on managing the project workflow and ensuring the timely delivery of results.
- WP2 and WP3 lay the foundation with an analysis of the potential business models to be applied in the different targeted application segments and an analysis of financing schemes to be used for the national financing guidelines (WP3).
- National implementation guidelines (WP4), directed at project stakeholders, as well as investor and banks, will further build on those results
- In parallel, the methodology and the structure of the PV Grid Database (WP5) will be extended and updated to also cover PV business models and their implementation and financing.
- The progress of these previous work packages will also contribute to the creation of National and EU Advisory Papers in WP6.
- Finally, the outputs of the mentioned work packages will be disseminated through WP7 (printed guidelines, workshops, articles, and the project website).
The WP interplay is presented below:
The following 6 application segments are analyzed in this project:
- Residential (single and multi-family houses, rented or owned)
- Commercial (shopping malls, large office buildings)
- Public (educational buildings)
- Industrial (industrial parks)
For each one of them, business models and financing schemes will be analysed.
A PV Business model is the revenue and operating model of the installed PV system. The exact configuration depends on different parameters, such as:
- The amount of PV electricity that can be consumed directly on site;
- The level of the retail electricity prices in each application segment;
- The electricity price components which can be compensated by local consumption;
- The pricing mechanism for excess PV electricity and current prices.
A basic reference taken into account for PV Financing is represented as follows
Depending on the actors involved, the cash flows and the above parameters, different models can arise from this structure. Our goal, in PV Financing, is to outline which ones will be most profitable,
Within PV Financing, we refer to the following as a financing scheme: the chosen option, among available ones, to provide funds for business activities, making purchases, hedging risk or investing.
Our role in this respect is to assess, for each application segment and each country, which financing schemes are best suited to support the most profitable business model, and to disseminate this information to investors and market actors.