Staged payments propel green technology adoption

The challenge

In line with their sustainability objectives, the client decided to install a solar PV system, aiming to reduce reliance on the grid and promote renewable energy. The project’s scale and the urgency for timely material and asset procurement posed significant challenges. Balancing the need to protect cash flow during the construction phase while making payments at key project milestones presented a critical client requirement.

The solution

To address these challenges, BNP Paribas Leasing Solutions proposed a ‘staged payment’ financing solution. This innovative approach involved making incremental payments to the solution provider at crucial project milestones. This ensured timely material procurement, allowing work to proceed seamlessly and the quality of the installed equipment remained uncompromised. Furthermore, by spreading repayments across a five-year term aligned with the client’s revenue cycle, cash flow was safeguarded. 

The benefits

• Timely payments aligned with key project milestones enabled the solution provider to secure critical materials, expediting project initiation and ensuring the project remained on track.
• The flexibility of staged payments eliminated budget constraints, allowing the client to invest in top-tier solar technology for optimal energy generation.
• Over the next 25 years, the installed system is projected to reduce the client’s carbon footprint by an impressive 4,723 T/CO2, illustrating the tangible environmental benefits of renewable energy adoption.