Major tier-one PV manufacturer JinkoSolar is to use finance leasing from China Development Bank Leasing Limited (CDBL) to build 1GW of PV projects over the next five years.
The finance leasing deal with CDBL will enable JinkoSolar Power, JinkoSolar’s downstream project developer subsidiary to build around 200MW of project per annum over the five year program.
Finance leasing is at an early stage of development in China and offers lower cost and risks for project developers. Typically, the finance leasing vehicle would be structured so that the lender acquires the asset and rents it back under the agreed leasing period, while providing options such as the lender selling the asset back after the period or retaining or selling the asset themselves.
Xiande Li, chairman of JinkoSolar said, “Financial leasing has the potential to greatly revolutionize PV project financing. By cooperating with CDBL, we are broadening our financing channels. PV financial leasing is still in its early stages in China and is complementary to the traditional financing we get for the construction of our PV power plants. It effectively reduces the financial pressures faced during project development, improves the liquidity of our project assets and ensures investment returns for both parties.”
JinkoSolar has guided new PV project development in 2015 to be in the range of 600MW to 800MW.
News of the deal comes a day after fire engulfed one of Jinko's Chinese wafer plants.