Australia’s largest investment bank, Macquarie Group, has entered the solar financing market in Australia, RenewEconomy has reported. CEO Nicholas Moore revealed the new development in Macquarie’s operational update.
The market for solar in very sunny Australia is promising, and with the distinct possibility that remaining incentives will be minimised or dropped by the powers that be, solar finance is likely to gain significant momentum in Australia, as it is in the United States. As RenewEconomy’s Giles Parkinson points out, Australia’s other “Big Four” banks could well follow Macquarie into the solar financing market, which could reduce the cost of capital and significantly lift the solar industry.
Macquarie Group has been looking at the solar power industry for a while now, and early last year its analysts concluded that the costs of rooftop solar panel systems had fallen so consistently that the continued drop in prices may be “unstoppable.”
Overseas, Macquarie has already committed close to $200 million to fund zero-upfront-cost solar power installations through a public housing contractor, along with some other solar industry investments. Macquarie Capital has also formed a joint venture in Japan to invest in renewable energy and infrastructure, focusing on large-scale solar projects. In addition, Macquarie has entered into an alliance with GE, with a focus on renewable energy infrastructure and development.