IFC Invests $20 Million to Support Sol Agora’s Solar Financing in Brazil

The International Finance Corporation (IFC) has made a $20 million investment (equivalent to BRL 115 million) to support Sol Agora, a fintech company specializing in long-term financing for micro and mini-distributed solar power generation in Brazil. The investment will help accelerate the country’s transition to a sustainable energy future and address climate change challenges.

Sol Agora provides financing solutions for Brazilian households and small businesses to acquire and install solar energy systems, a crucial step in reducing carbon emissions and enhancing resilience in the country’s energy infrastructure. By generating electricity at the consumption point, solar power minimizes transmission and distribution losses, leading to lower energy costs for consumers.

The investment will contribute to diversifying Brazil’s national energy matrix and supporting its goal of achieving a low-carbon economy. IFC acquired senior quotas of Sol Agora’s second FIDC, IS Sol Agora Green II ESG FDIC, which has reached approximately BRL 900 million in commitments. The fund has been fully called and disbursed. Sol Agora’s first FIDC, launched in 2022, has raised over BRL 1.4 billion and financed more than 43,000 clients across Brazil.

IFC’s support aligns with its goal to expand access to climate finance, particularly for solar systems, and make these technologies more accessible to a broader range of customers. By improving financing terms, the investment will help make solar installations more affordable for Brazilian households and small businesses.

Manuel Reyes-Retana, IFC Regional Director for South America, commented, “We are excited to partner with Sol Agora to expand financing for solar solutions in Brazil. This initiative contributes to Brazil’s sustainable economic growth and climate resilience, supporting its ambitions to become a global climate leader.”

Brazil, responsible for around 40 percent of greenhouse gas emissions in Latin America, has committed to cutting emissions by 48 percent by 2025 and 53 percent by 2030 compared to 2005 levels. The country aims to increase renewable energy (excluding hydro) to 45 percent of its energy mix by 2030, up from 22 percent in 2022, and achieve net-zero emissions by 2050.

To reach these targets, Brazil needs an estimated 4.3 percent of its GDP in annual investment between 2022 and 2030. The IFC estimates that the country has a climate-related investment potential of $1.3 trillion from 2016 to 2030.

Antonio Nuno Verça, CEO of Sol Agora, highlighted the significance of the partnership with IFC, stating, “Partnering with IFC represents a transformative milestone that strengthens our capital structure and fundraising capabilities, positioning us to scale our impact and navigate future opportunities effectively.”