By Vvon Engineering Team | Published | Updated
Three ways to fund an industrial rooftop solar plant in Bangladesh, what each does to your balance sheet, what a lender or ESCO will ask you for, and the roof and tenure questions that decide whether a deal closes.
Solar EPC & street lighting RFQ checklist (TXT)
Compare the upfront and ongoing cash flows of direct ownership, financed ownership and a third-party arrangement. Use a dated quotation and site-specific savings model; a generic tariff or array size cannot establish the borrowing need or repayment ability.
Ask participating banks and development-finance institutions which renewable-energy products are currently available for your project. IDCOL publishes lending and programme information; eligibility, security, equity, pricing and drawdown conditions require a current written offer.
With financed ownership, establish when title passes and the lender's security rights. Compare annual debt service with the project's net cash benefit, including downside scenarios and replacement cost. Your accountant should assess the balance-sheet and covenant effects.
An ESCO or RESCO may finance and own the installation while charging for energy or a service. The tariff, escalation, minimum purchase, contract duration and any eventual transfer are negotiated terms, not fixed market percentages.
Read the allocation of performance, maintenance, insurance, roof repair, access, shutdown, early-exit and buyout obligations. A third party's capital does not remove the customer's payment or property risks.
A lease can charge rent for equipment use, with purchase or return options defined by contract. Do not assume it is off balance sheet: IFRS 16 generally requires lessees to recognise a right-of-use asset and liability, subject to its scope and exceptions. Obtain advice on the reporting framework and whether the arrangement contains a lease. Performance and maintenance responsibilities also depend on the agreement.
| Factor | Financed ownership | ESCO / energy service | Equipment lease |
|---|---|---|---|
| Initial cash | Equity, fees and uncovered cost may be required. | Deposits or enabling work may be required. | Deposit, advance rent or enabling work may apply. |
| Payments | Debt service plus operating cost. | Contracted energy/service charges. | Contracted rental and other charges. |
| Accounting | Assess with finance team. | Assess contract substance and applicable standards. | Assess IFRS 16 or the applicable framework. |
| Maintenance | Allocate explicitly. | Allocate explicitly. | Allocate explicitly. |
| End or exit | Debt, asset and disposal obligations. | Buyout, renewal or removal terms. | Purchase, renewal or return terms. |
The appraisal is where timelines slip, almost always because the technical file and the financial file are being prepared by two groups who are not talking to each other. Assemble both before you approach anyone.
| Item | Who provides it | Why it is asked for |
|---|---|---|
| Three years of audited accounts | Owner's finance team | Establishes repayment capacity and covenant headroom |
| Twelve months of electricity bills | Owner | The saving being financed is derived from these, not from a generic tariff |
| Sanctioned load letter and transformer details | Owner | Caps the approvable plant capacity, and therefore the fundable project size |
| Proof of roof ownership, or lease deed with landlord consent | Owner | Nobody lends against an asset bolted to a roof the borrower may vacate |
| Board resolution authorising the borrowing | Owner | Standard sanction condition |
| EPC contract, BOQ and technical specification | EPC contractor | Lets the appraiser test whether the cost and the yield estimate are credible |
| Generation estimate and savings model | EPC contractor | Underwrites the repayment source; a model without a self-consumption split will be questioned |
| Net-metering NOC or approval letter | Owner signs, EPC prepares | Often a disbursement condition, since without it the plant cannot export or be billed on a netted basis |
| Insurance cover for the installed asset | Owner | Sanction condition; check the policy actually covers rooftop PV against storm damage |
The item most often missing is the net-metering approval, because owners assume it follows installation. Where a lender makes it a disbursement condition, an unapproved plant means a completed project with no drawdown. Confirm early which of your conditions are pre-disbursement and which are post-completion, and build the utility approval timeline into the drawdown schedule.
Compare lifetime cost, cash-flow headroom, roof tenure, energy demand and contract risk for each available offer. Neither direct borrowing nor an ESCO is automatically best, and none removes risk entirely. A smaller project or deferral may be appropriate if key assumptions are uncertain.
Consult the relevant edition and the documents for the exact equipment and site: IDCOL: renewable-energy lending terms; IFRS Foundation: IFRS 16 lease accounting; SREDA: Net Metering Guidelines and current application documents.
Share your application, equipment requirements and procurement timeline. Our engineers can help clarify the configuration and scope for your enquiry.