Find out what bankability is and what it represents in the solar sector

Bankability is a classification that helps investors assess the scale of risk when making investments
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Saiba o que é bankability e o que ela representa no setor solar

Bankability or bankability is a classification in which different financial agents can assess the scale of risk when investing money in companies and projects.

The bankability analysis is carried out based on different parameters and shows the company's financial indicators that prove whether the company is financially healthy, whether it can honor its commitments within a given period and whether it is a highly profitable company.

All of these indicators show investors how solid a company is and also help to improve the supply of credit and interest in operations.

Bankability and the solar energy sector

In the solar energy market, bankability It is something even more important and profound. Among equipment manufacturers, whether modules or inverters, it is extremely important to adhere to this Indicator, which is why PVTech carries out a study involving financial data and production capacity, bringing a scale between C (high risk) and AAA ( high profitability, the famous triple A).

This classification greatly helps the solar industry to provide guarantees to its investors in several aspects. Firstly, bankability tells whether the company can deliver the agreed order, guaranteeing the financial planning of the project.

Secondly, bankability guarantees large projects good credit negotiations. Thirdly and finally, the most important: bankability attests to the company's ability to meet equipment warranties.

The latter is very particular to the solar segment, as projects employ equipment with a life expectancy of 25 to 30 years.

For an investor, it is extremely important to have confidence that their supplier is able to maintain their healthy and profitable operations during this period.

Artigo Bankability

Bankability will increasingly become a crucial factor for negotiations in Brazil, since the expansion of large plants has seen a lot of growth in the market and also the increase in investors involved in the renewable energy market.

All of this combined with global economic instability makes it increasingly important to look at other variables and not just the CAPEX of projects.


Picture of Rafael Normanton
Rafael Normanton
LATAM Marketing Manager at LONGi Solar, advertising specialist in planning and digital marketing. 15 years of experience and since 2016 working in the solar energy sector.

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