Finame: what is it and how to finance photovoltaic equipment?

The search for national photovoltaic modules through Finame has grown despite recent changes made by government agencies to the credit line. That's what it says Marcelo Taborda, commercial manager of BYD.

“The incentive was reiterated by government bodies recently, even so the search for Finame financing are being quite considerable, there was an increase in demand for photovoltaic modules of national production and from distribution partners who are wanting to register on the BNDES platform, in August this year we reached record sales of these products in Brazil”, comments Taborda.

But after all, what is Finame and how can this line be used by professionals working in the solar sector?

Finame is a financing line from BNDES (National Bank for Economic and Social Development) made through accredited financial institutions for the production and acquisition of new nationally manufactured machinery and equipment for companies that are accredited.

This line of financing has specific objectives and financial conditions to meet the demands of different customer profiles, according to the beneficiary company and the financeable items.

Finame Low Carbon

And, to encourage the reduction of carbon emissions, the BNDES Finame Low Carbon. This line of credit is aimed at the acquisition and commercialization of solar and wind energy generation systems, solar heaters, electric buses and trucks – hybrids and powered exclusively by biofuel – and other machines and equipment with higher levels of energy efficiency, or, which contribute to reducing greenhouse gas emissions.

According to Arthur Santini, director of Ecori Solar Energy, the credit limit offered by the company for this financing varies from institution to institution. “Normally private institutions work with a lower funding limit, which is around R$ 300 thousand, R$ 500 thousand, some R$ 1 million. For larger projects, above R$ 1 million, these are generally only government projects”, explains Santini.

In addition to the financial limit, there is also the power limit of the plant, as Taborda explains. “The credit limit offered by BNDES depends on the customer's financial analysis, however the main limitation is that the plant can reach a maximum of up to 5 MW so that it is within distributed generation”.

Recently, the manufacturer launched a guide to guide installers and distributors in registering and operating in the solar sector. click here to download.

Fees and deadlines

The composition of the interest rate varies according to the form of support. In indirect operations, the Interest Rate is made up of the Financial Cost (TFB, TLP or Selic), the BNDES Rate (0.95% per year) and the Financial Agent Fee (up to 3.5% per year). Furthermore, the final interest rate will be composed of the Financial Cost and the BNDES Rate (includes the BNDES remuneration and the credit risk rate).

For indirect operations, the final interest rate will be composed of the Financial Cost, the BNDES Rate (includes the BNDES remuneration and the financial intermediation rate) and the Financial Agent Fee. The term is up to ten years, with a grace period of up to two years. For TFB financing, the grace period is up to one year.

Changes

At the beginning of July, BNDES published in the DOU (official diary) relevant changes to this line of credit. According to the text, the requirement for proof within the scope of Products is suspended in reference to:

• Debt Clearance Certificate relating to Federal Taxes and the Union's Active Debt or Positive Certificate with Debt Clearance Effects relating to Federal Taxes and the Union's Active Debt;
• FGTS Regularity Certificate;
• Rural Land Tax;
• RAIS (Annual List of Social Information), or, when applicable, declaration by the Final Beneficiary that they were entered into the Digital Bookkeeping System for Tax, Social Security and Labor Obligations.

However, the requirement to prove regularity with social security continues, for the purposes of hiring and releasing resources.

Finame Renewable Energy

In addition to Finame Baixo Carbono, a financing program for the acquisition of machines, there is also the Finame Energia Renovável line, which is a line of credit for the acquisition of photovoltaic systems by BNDES Finame, and the agency's participation can reach 100% of the value of the project, including both equipment and labor to install the system.

The basic requirement to be entitled to financing is that the solar system equipment must be manufactured nationally and be accredited with BNDES. And, it is possible to consult the accredited equipment in BNDES website.

This financing classification is available for:

• Companies based in the country; public administration;
• Individual entrepreneurs and micro-entrepreneurs;
• Farmers;
• autonomous cargo transporters;
• Foundations, associations and cooperatives based in the country;
• Individuals resident and domiciled in the country;
• Condominiums.

Other modalities

Financing for the Buyer: resources aimed at the acquisition of machinery and equipment that, due to their nature, at the discretion of BNDES, may or may not be intended for the use of third parties, through a loan agreement or for rental.

• Financing for the Production of Machinery and Equipment: resources aimed at the production of machinery and equipment already negotiated with the respective buyers;
• Financing to Manufacturer for Commercialization: focused on the sale of machinery and equipment already negotiated with the respective buyers;
• Finame Agricultural: focused on purchasing products and equipment for the agricultural sector;
• Finame Leasing: a loan in which the financial institution providing it will own the product/purchase until the loan is paid in full.