Berlin-based Zolar, which supplies solar panels to consumers, has raised a €100m debt vehicle from BNP Paribas to offer financing solutions to its residential customers.
Germany continues to lead the charge on residential solar suppliers, with three of Europe’s largest solar startups, including Zolar, based in the country.
Zolar provides consumers with panels and offers a flexible instalment loan to help finance it. Consumers can choose between making a one-time upfront payment or a flexible monthly fee.
Green asset-backed securities on the up
Zolar’s new debt vehicle is an asset-backed security (ABS). When a customer signs a contract, Zolar will receive the entire worth of that contract upfront from the debt facility. The customer’s loan will then be paid to BNP Paribas, instead of Zolar— meaning the debt does not sit on its balance sheet.
Climate tech companies supplying hardware are increasingly turning to debt vehicles rather than dilutive equity to fund the rollout of their technology.
Fellow German solar provider Enpal secured an €1.1bn ABS in March this year. At the time, the company said it was the first in Europe to be linked to renewable energy — though the setup is common in the US. At the end of last year, British bank Barclays predicted that the issuance of ABS would reach record levels in 2024.
The German solar cohort
Zolar, set up in 2016, is the oldest of a cohort of German companies supplying solar panels and other energy tech to consumers. It was followed by Enpal, founded in 2017 and fellow unicorn 1Komma5, based in Hamburg and also supplying domestic energy tech, founded in 2021.
Zolar has raised $241m (€300m) from backers such as Partech, Heartcore Capital and green search engine, Ecosia.
