August 29 (Solar) – The Brazilian unit of Spanish bank Santander (MCE:SAN) announced that it will be offering to its local customers a financing line for small-to-mid-sized solar installations in an effort to boost the distributed generation (DG) sector in the country.
The bank is also reducing the interest rate for solar equipment from 1.69% per month to 0.99%. The credit line is designed for individual, rural and legal clients, local media reported on Tuesday.
With this initiative, Santander expects to increase its current solar DG fund portfolio from BRL 100 million (USD 24.2m/EUR 20.7m) to BRL 1.8 billion over the next three years. By 2021, the lender anticipates to achieve a 16% market share in financing solar generation from 11% currently.
According to the national power sector regulator Aneel, Brazil has 44,328 solar DG systems in operation, which represents a combined capacity of some 350.27 MW.
(BRL 1 = USD 0.24/EUR 0.21)