FAQ
What is project financing?
Project financing is calculated, secured, and issued in relation to a project. This means that the photovoltaic system and its returns serve as collateral, and the applicant does not need to provide any additional securities. The conditions are not based on personal creditworthiness, but are based exclusively on the expected returns of a system.
What does first-priority easement mean?
The lending institution will always require the registration of a first-priority easement in the land register, unless the property owner is a public entity.
Why does the bank require an assignment of the EEG compensation?
The borrower transfers the rights to the feed-in tariff from the respective energy supply company to the lender, so that in the event of the borrower's departure, the lender can continue to service the loan.
What is the difference between an Asset Deal and a Share Deal?
When purchasing a photovoltaic system, you can either buy only the system to acquire it as your property (Asset Deal) or you acquire a company (Share Deal) that owns the photovoltaic system. This creates different requirements for the lender regarding the contractual design of the loan.
Do I need to provide collateral as a private person to obtain project financing?
No. The photovoltaic system serves as collateral. The owner must assign the rights to the EEG compensation and, if necessary, have a first-priority easement entered in the land register.
Do I always need equity capital?
Yes. Equity capital is always required. The required amount varies greatly and always depends on the underlying photovoltaic system.
What does leverage effect mean?
According to the leverage effect, the return on equity can be leveraged under certain conditions when part of the investment is financed through debt capital. For this, the interest on the debt capital must be lower than the total return on investment, which should be the case with financeable photovoltaic systems. Therefore, in terms of return on equity, it always pays to use as much debt capital as possible.
Can I agree on an interest rate lock?
Yes, our partner banks offer interest rate locks. This is worthwhile in the current low interest rate phase and can be extended or shortened upon request.
What documents do I need to provide to the lending institution?
Depending on the project size, lenders require extensive documentation for photovoltaic financing. Milk the Sun not only sends you detailed checklists for the application, but can also support you in obtaining numerous documents and reports with preferential conditions from reputable providers. The following documents are required, among others:
Yield estimate or report
Value assessment
Land register extract
Cadastral map
If applicable, structural engineering report
If applicable, technical purchase review
If applicable, legal purchase review
If applicable, historical yield data
What preferential treatments does Milk the Sun enjoy with partner banks?
Milk the Sun has a direct connection to major lending institutions thanks to years of experience with photovoltaic financing and proven cooperation with qualified partners. Experienced contacts are available at all times for questions and support in the application process.
Does Milk the Sun's service cost a fee?
Milk the Sun's service does not incur any additional costs for you. Milk the Sun and its partners share processing and fees, so applicants do not incur more costs than if they applied directly to the partner.
