KBRA Releases Research – European Solar ABS: Potential to Support Green Transition?
LONDON–(BUSINESS WIRE)–#KBRA–KBRA UK (KBRA) releases a report on Europe’s potential for asset-backed securities (ABS) based on solar photovoltaic (PV) panel financing collateral. In the US, this market has been a growing part of the securitisation landscape for the past seven years, accounting for USD8.6 billion issued in 2022 alone. This contrasts with Europe, where the securitisation market has yet to become a source of capital funding for the expansion of rooftop solar PV lending. In KBRA’s view, the securitisation market could offer a vital source to recycle funds into new lending as the European Union (EU) targets an ambitious expansion of rooftop solar PV installations. In this report, KBRA explains some of the market dynamics, how the product is structured in the US, and how the European market may develop in the future.
Key Takeaways
- Solar PV energy production is a key part of a transition to renewables and the EU’s energy security roadmap.
- The EU could potentially produce up to 680 terawatts per hour (TWh) of solar electricity annually from solar PVs on rooftops, representing almost 25% of current electricity consumption.
- The US solar ABS market increased to USD8.6 billion issued in 2022 from USD1.4 billion in 2016, supporting the expansion of solar PV adoption with capital market funding of over USD27 billion.
- The EU’s 2030 solar generation targets will require significant funding, of which solar ABS securitisation could offer support.
Click here to view the report.
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About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Contacts
Gordon Kerr, Head of European Research
+44 20 8148 1020
gordon.kerr@kbra.com
Killian Walsh, European ABS
+353 1 588 1184
killian.walsh@kbra.com
Karl Cummins, European ABS
+353 1 588 1240
karl.cummins@kbra.com
Rosemary Kelley, Senior Managing Director, Head of Global ABS
+1 (646) 731-2337
rosemary.kelley@kbra.com
Yee Cent Wong, Co-Head of Europe
+353 1 588 1260
yee.cent.wong@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
