Solarigo - Debt financing round

Solarigo Systems offers Finnish renewable solar energy to corporations and communities. Its customers can choose between two contract models: either a full-service contract or a system delivery for the customer's solar plant combined with maintenance services.

In 2017, Solarigo was a fast-growing company that faced the challenge of finding a funding solution that would support the expansion of its solar energy plants in a capital-intensive energy market. At the time, successful funding of renewable energy projects (e.g., wind power) required extensive support from Finnish governmental organisations and figures. Thus, Finnish financiers and investors were suspicious of private solar energy projects. They were also not convinced that solar energy production could be profitable in Finland, where the amount of sunshine is only half compared to Southern Europe. Also taxation, transfer pricing, and investment grants significantly impact the profitability of solar energy production.

Grannenfelt Finance planned and executed debt funding for Solarigo. The biggest challenge was to convince the financiers of the profitability (positive cash flow) of solar power, the credibility of the investment plan, and also, in some cases, whether there is enough sunshine in Finland.

Grannenfelt Finance was successful in demonstrating that solar power can indeed be profitable under certain conditions, and as the technology (e.g., solar panels) develops, also project profitability will further improve. During the process, Grannenfelt Finance was also able to convince the financiers that the investment plan was realistic. This was also validated by a third-party expert.