Are you considering installing solar panels for your business but the initial investment is holding you back? The third-party photovoltaic investment model could well be the solution you need. It allows you to benefit from solar energy without having to advance the funds required for installation. But how exactly does it work and what are the concrete benefits for your projects? This article sheds light on this advantageous scheme.

Key Points of Third-Party Photovoltaic Investment

• Third-party investment allows you to deploy a solar power plant without any initial financial contribution from your side.
• An external investor covers all costs, from equipment purchase to installation and maintenance.
• This model transforms your investment expenses into predictable operational costs, improving your cash flow.
• It facilitates the achievement of your sustainable development goals and the reduction of your carbon footprint.
• Criteria such as available surface area and proximity to a connection determine the eligibility of your project.

Understanding the third-party photovoltaic investment model

Third-party photovoltaic investment represents an innovative approach to adopting solar energy, particularly suited to businesses and landowners who wish to benefit from the advantages of solar without the initial financial commitment. This model is based on a partnership where an external party, the third-party investor, takes charge of all costs related to the installation and operation of a photovoltaic power plant on the beneficiary’s property. In return, the third-party investor receives income from the sale of the electricity produced or can offer a preferential rate to the owner for the energy consumed on site. It’s a way to enhance a space, such as a roof or land, while participating in the energy transition, without having to mobilise significant own funds. This scheme allows a potentially heavy investment expense to be transformed into a more manageable and predictable operational cost, thus facilitating access to green energy. It differs from other models such as pure self-consumption or direct sale to the grid by this complete cost coverage by a third party. The company thus benefits from a turnkey solution, delegating the technical and administrative management of the project to the specialist. This type of partnership is often formalised by long-term contracts, such as emphyteutic leases, which govern the rights and obligations of each party. To find out more about the different solar financing options, you can consult the solar financing solutions. The choice of this model must align with the company’s strategic and financial objectives, taking into account the duration of commitment and the terms of profit sharing. It offers a concrete way to reduce one’s carbon footprint while optimising the use of one’s real estate assets. This model is an interesting alternative for those looking to reduce their energy costs without tying up capital, allowing for more flexible budget management and better predictability of expenses. It is a particularly relevant solution for farms or industrial sites with large potentially underutilised areas. The third-party investor takes care of everything, from study to maintenance, thus offering peace of mind to the owner. This type of project can also be seen as a way to improve the patrimonial value of a property, by equipping it with a source of renewable energy and potentially generating income or savings. It is important to fully understand the terms of the contract to ensure that the profit sharing is equitable and that the obligations of each party are clearly defined. This model allows you to benefit from solar energy without the initial financial constraints, making the energy transition more accessible. Information on the role of a third-party investor for solar panels can be found to better understand how it works. The objective is to create a win-win situation, where the owner enhances their property and the investor makes their capital profitable, all within a sustainable development approach.

The financial advantages of third-party investment

The third-party photovoltaic investment model offers significant financial benefits for businesses wishing to engage in the energy transition without mobilising their own capital. This approach allows a potentially heavy investment expense to be transformed into a more manageable and predictable operational cost. In short, it’s a way to access solar energy without having to buy or install the panels yourself.

Elimination of acquisition and installation costs

One of the major attractions of third-party investment is the elimination of initial expenses related to the purchase and installation of solar equipment. The investor covers all these costs. This means your company does not need to spend large sums to acquire the panels, inverters, and all necessary equipment, nor to pay for skilled labour for installation. You thus benefit from solar energy without the initial financial commitment.

Transformation of investment expenses into operational costs

Instead of a significant one-off cash outflow (capital expenditure or CAPEX), third-party investment converts this into regular and predictable payments (operational costs or OPEX). These payments, often in the form of a royalty or an electricity purchase contract at an advantageous rate, are integrated into your operating expenses. This structure facilitates budget management and allows for better anticipation of cash flows.

Budget predictability for businesses

Thanks to long-term contracts with fixed or indexed electricity tariffs or royalties according to clear clauses, third-party investment offers great budgetary stability. You know in advance how much solar energy will cost you over several years. This visibility is a major asset for financial planning, allowing you to better control your energy expenses and protect yourself against unforeseen fluctuations in market energy prices.

Third-party investment makes solar energy accessible to businesses that do not have the necessary funds for an initial investment, while offering them financial predictability in the long term.

Benefits for businesses’ energy transition

The use of third-party photovoltaic investment represents a concrete and accessible step for businesses wishing to actively engage in the energy transition. This model allows economic imperatives to be reconciled with sustainable development objectives, thus offering a privileged path to reducing one’s environmental impact without burdening the investment budget.

Alignment with sustainability goals

The integration of solar panels, even without initial investment, positions your company as a responsible and forward-looking player. This demonstrates a clear commitment to reducing your carbon footprint. Furthermore, it helps you comply with increasingly strict environmental regulations, such as those requiring the installation of solar canopies in car parks. For example, the law on accelerating renewable energies demands rapid adaptations for large parking areas.

Carbon footprint reduction without financial effort

One of the most striking advantages of third-party investment is the possibility of producing clean and renewable energy without having to bear the costs of acquiring and installing the equipment. It is the investor who covers all these expenses. In return, you benefit from greener electricity, thereby directly reducing greenhouse gas emissions linked to your energy consumption. It is an effective way to green your operations while controlling your expenses. You can thus focus on your core business, leaving the technical and financial management of the solar installation to the partner.

Facilitated access to green energy

The third-party investment model opens the door to solar energy for a greater number of businesses, including those who might be deterred by the initial cost of a photovoltaic project. It transforms a potentially heavy investment expense into a predictable operational cost. This allows for better budget management and frees up capital that can be reinvested in other strategic projects. In short, it is a solution that makes solar energy more accessible and simpler to integrate into the company’s overall strategy, thus contributing to a faster and broader energy transition. The installation of a photovoltaic power plant in a car park can thus become a reality without mobilising significant own funds.

Eligibility criteria for a solar project

Before embarking on a solar investment project with a third party, it is important to check if your site meets certain criteria. These conditions help ensure that the installation will be profitable and technically feasible. Basically, the location must be well suited for everyone to benefit.

Importance of available surface area for installation

The size of the space is a determining factor. The more surface area you have, the more panels you can install, and therefore the more electricity you can produce. We generally talk about a roof of at least 1000 m² or a substantial plot of land. This is what allows sufficient power to be achieved to make the project interesting for an investor.

Proximity to connection infrastructure

For the electricity produced to be injected into the grid, a connection is required. The proximity of an Enedis transformer is therefore a major advantage. Ideally, it should be less than 300 metres from the installation site. This simplifies procedures and reduces connection costs, which is a positive point for the viability of the project. The decree of 6 October 2021 details the conditions for benefiting from the purchase obligation, including the sale of all electricity produced learn more about the purchase obligation.

Analysis of technical implantation constraints

The practical aspects of the installation must also be considered. For example, the condition of the roof must be good to support the weight of the panels without additional work. For a ground installation, the nature of the land matters: a flat surface or one with a slight slope is preferable. It is also necessary to check that there are not too many shadows that could reduce production. The use of certified materials and methods, such as those on the C2P list, can also simplify procedures and reduce technical risks discover the advantages of C2P certification.

Evaluating these criteria ensures that the solar project is not only technically feasible, but also economically viable in the long term, which is essential to attract a third-party investor.

The role and responsibilities of the third-party investor

Within the framework of a third-party photovoltaic investment partnership, the role of the third-party investor is central and encompasses several key responsibilities. They act as the financial and technical driver of the project, allowing the owner to benefit from solar energy without having to bear the costs and constraints of a direct installation. The third-party investor takes full responsibility for the financing, installation, maintenance, and operation of the photovoltaic installation.

Responsibility for installation and equipment purchase

The third-party investor is responsible for all stages related to the physical setup of the solar installation. This begins with the acquisition of photovoltaic panels, inverters, mounting structures, and all other necessary components. They then manage the technical installation, ensuring that everything complies with current standards and best practices in the sector. Obtaining the necessary permits and authorisations also falls under their responsibility. This complete coverage eliminates the financial and technical barrier for the site owner, who can thus access solar energy without initial investment. It is a turnkey solution to benefit from green energy without tying up capital.

Responsibility for maintenance and repairs

Once the installation is operational, the third-party investor retains responsibility for its maintenance and repairs. This includes regular inspections, cleaning of panels, checking electrical systems, and replacing defective parts. The objective is to ensure that the installation operates optimally and continuously, thus ensuring stable and efficient energy production over the contract duration. This outsourced technical management allows the owner to be relieved of any maintenance concerns, while benefiting from a high-performing system.

Management and optimisation of energy performance

Beyond maintenance, the third-party investor ensures the management and optimisation of the installation’s energy performance. They continuously monitor electricity production, analyse operating data, and implement corrective or preventive actions to maximise output. This may involve technical adjustments or upgrades to adapt to technological developments or operating conditions. The objective is to ensure that the solar installation generates the maximum possible energy, for the benefit of both parties, and contributes effectively to energy transition goals. The analysis of the profitability of such a project is a key element that the third-party investor carries out to assess viability.

The owner’s obligations under the contract

When you opt for third-party photovoltaic investment, your role as owner is clearly defined by the signed contract. It involves facilitating the installation and operation of solar panels on your property, while respecting the agreed terms. These commitments aim to ensure the smooth running of the project and the safety of the installations for all stakeholders.

Provision and secure access to the space

Your primary responsibility is to provide the agreed surface area for the installation of solar panels. This may concern a roof, land, or any other area identified in the contract. It is imperative that this space is safely accessible to the third-party investor’s teams, both during the initial installation and for subsequent maintenance operations. Access must be clear and secure, in accordance with current standards, to prevent any risk of accident. It is important to ensure that the structure that will house the panels is in good condition and can support the weight of the equipment. A preliminary assessment of the structure is often carried out by the third-party investor.

Compliance with contractual clauses and the lease

The third-party investment contract, often formalised by an emphyteutic lease, establishes a long-term relationship, generally between 15 and 30 years. It is therefore essential to carefully read and respect all clauses of this document. This includes the conditions of use of the space, the responsibilities of each party, and the terms of contract termination. For example, certain clauses may stipulate restrictions on the use of the area dedicated to solar panels or impose specific conditions for any work on the property. Compliance with these commitments ensures the sustainability of the partnership and avoids any disputes. It is advisable to consult a professional to fully understand all the implications of this type of lease, such as the emphyteutic lease.

Collaboration for optimal asset operation

Beyond simply providing the space, active collaboration with the third-party investor is beneficial for optimising the solar installation. This may involve facilitating access to production data, promptly reporting any anomalies observed on the panels, or cooperating during maintenance interventions. Good communication between the owner and the third-party investor helps maximise energy production and extend the lifespan of the equipment. By doing so, you actively contribute to the success of your solar project and the enhancement of your assets. It is important to note that the third-party investor is generally responsible for maintenance and energy performance management, but your cooperation can improve the overall efficiency of the system. Local authorities may also have guidelines to follow to structure the project upstream.

Comparison with other solar financing models

The photovoltaic solar sector offers several approaches to financing and operating installations. It is therefore important to clearly distinguish third-party investment from other common options to make the most suitable choice for your situation.

Differences with grid injection

Grid injection, in its simplest form, consists of selling all the electricity produced by your solar panels directly to a buyer, often an energy supplier. This generates regular income based on fixed purchase tariffs. However, you generally have to bear all the acquisition and installation costs. Third-party investment, on the other hand, covers these initial costs. The owner thus benefits from the energy produced without having to invest, but the revenue sharing is different. In the case of injection alone, all revenues come back to you, minus operating costs. With third-party investment, the investor receives the majority of the income from electricity sales, in exchange for their financing. It is important to understand that solar projects may not always have quick returns, which makes initial financing an obstacle for many [f5a7].

Distinction from self-consumption

Self-consumption aims to directly consume the electricity produced by your solar panels on your site. The main objective is to reduce your electricity bill by using your own production. This allows you to partially free yourself from energy price fluctuations and associated taxes. In a pure self-consumption model, you own the installation and bear all its costs and benefits. Third-party investment, on the other hand, allows you to benefit from solar energy without purchase or installation, often at a preferential rate, but without full ownership of the installation for the duration of the contract. You do not have to worry about technical management, as this is the role of the third-party investor.

Unique positioning of third-party investment

Third-party investment stands out due to its model where an external party fully finances the photovoltaic installation. The owner provides a space (roof, land) and in return benefits from the electricity produced, often at a cost lower than the market price, or from rent for the space used. This model is particularly interesting for businesses or local authorities that wish to reduce their carbon footprint and energy costs without mobilising their own capital. It is a solution that combines the advantages of green energy production with an absence of initial investment, which makes it unique compared to direct purchase or self-consumption where initial investment is often required.

The different possible contractual structures

When a company or landowner embarks on a solar project with a third-party investor, several contractual frameworks can be considered. These structures define the rights, obligations, and duration of the collaboration, while ensuring the viability of the project for all stakeholders. The choice of contractual structure is crucial for risk management and profit sharing.

Use of the emphyteutic lease

The emphyteutic lease is a very common formula in the context of third-party photovoltaic investment. It is a long-term rental contract, generally extending over 15 to 30 years, which grants the third-party investor real rights over the property. This lease allows the investor to install and operate the solar panels, while committing to maintaining the installations in good condition. At the end of the lease, the improvements made, such as the solar panels, may revert to the owner, thus increasing the value of the assets. It offers solid legal security for both parties, precisely framing the commitments during the life of the project.

The building lease and its specificities

The building lease is another contractual option. Similar to the emphyteutic lease in its duration and objective of enhancement, it differs in that the lessee (the third-party investor) undertakes to carry out constructions on the leased land. In the solar context, this includes the installation of photovoltaic panels. This type of lease can offer increased flexibility, as it allows for easier integration of specific clauses related to the construction and operation of the installations. It is important to fully understand the construction and restoration obligations at the end of the contract.

Legal and tax implications of contracts

Beyond the type of lease, several legal and tax aspects deserve particular attention. The duration of the contract, for example, must be long enough to allow for the amortisation of investments made by the third-party investor, often between 20 and 40 years for large installations. It is also essential to clarify the ownership of the installations at the end of the contract and the terms of dismantling. The distribution of income, often in the form of fixed rent for the owner, must be clearly defined, as must indexation clauses to account for inflation. It is advisable to consult professionals to ensure that the contract is balanced and complies with current regulations, particularly concerning agrivoltaic projects which require specific adaptations to maintain agricultural activity. A thorough analysis of the contractual obligations is essential before any signing.

The choice of contract directly impacts the profitability and long-term management of the solar project. It is therefore recommended to compare several offers and to fully understand the commitments of each structure.

Enhancing real estate assets through solar

Owning unused surfaces, such as land or roofs, can seem like a missed opportunity. However, photovoltaic solar, through the third-party investment model, transforms these spaces into genuine sources of passive income. It’s a smart way to give new life to your real estate assets without having to spend a penny out of your own pocket. The principle is simple: an investor takes charge of the installation and management of a solar power plant on your property, and in return, you receive rent over a long period, often 20 to 30 years. It’s a concrete way to generate additional income while contributing to the energy transition. ADEME estimates that each hectare of degraded land equipped with photovoltaics can bring in up to €9,000 per year to the owner. This is an opportunity to seriously consider to optimise the value of your real estate assets.

Optimisation of underutilised surfaces

Many owners have vast industrial roofs, car parks, or unproductive agricultural land. These surfaces, often left as they are, can be transformed into solar power plants. The third-party investor takes care of everything: from the feasibility study to the installation of the panels, including maintenance. You thus benefit from a regular rental income without any management on your part. It’s an ideal solution for businesses that wish to enhance their spaces while improving their environmental footprint. For example, a roof of more than 1000 m² is generally a good starting point for a profitable project. The important thing is to have good sunshine and reasonable proximity to a connection point to the electricity grid, such as an Enedis transformer located less than 300 metres away.

Generation of passive income without active management

The third-party investment model is particularly attractive because it allows you to receive income without having to get involved in the technical or administrative management of the project. The investor assumes all financial and operational risks. You only have to provide the necessary space and guarantee access for installation and maintenance. It is a form of passive income that requires no additional effort on your part. The lease contract, often long-term, ensures financial stability over the long term. It is important to note that the sale of surplus electricity can also be a source of income for the owner, offering financial stability with a guaranteed tariff for 20 years, which acts as protection against energy inflation.

Improvement of patrimonial value

Installing solar panels on your properties, even without initial investment, can indirectly increase their value. A building equipped with a solar power plant is often perceived as more modern and more ecological. Furthermore, the income generated by the rent of the land or roof contributes to the overall profitability of your assets. This can be a strong argument during a future sale or loan renegotiation. The photovoltaic market in France, for example, is growing rapidly, supported by favourable regulations, which makes these installations all the more interesting for the future of the market. By transforming unused surfaces into productive assets, you optimise the use of your properties and strengthen their attractiveness on the real estate market. Ground-mounted solar projects, for example, can be an excellent option for unproductive agricultural land or industrial brownfield sites.

Potential drawbacks and points of vigilance

While third-party solar investment offers many advantages, it is important to consider certain less favourable aspects before committing. A cautious approach helps avoid unpleasant surprises and ensures that the partnership remains beneficial in the long term.

Long-term contractual commitment

One of the most important points to consider is the duration of third-party investment contracts. These agreements are generally concluded for periods ranging from 20 to 40 years. This longevity, necessary for the investor to amortise their capital, can become a constraint if your situation changes. For example, if you plan to sell your property or change the use of your land, the contract clauses could complicate these operations. It is therefore essential to be sure of your project and your commitment before signing.

Dependence on the third-party investor’s management

Under this model, the site owner is not directly involved in the technical management of the solar installation. It is the third-party investor who takes charge of maintenance, repairs, and performance optimisation. While this reduces your mental burden, it also means that you depend on the quality of your partner’s management. Negligent maintenance or suboptimal technical decisions on the part of the investor could affect energy production and, potentially, your own benefit or the value of your property. It is therefore recommended to carefully check the references and financial solidity of the third-party investor before committing.

Profit sharing and impact on net profitability

The third-party investment model is based on a sharing of income or energy savings generated by the solar installation. Although the owner benefits from a reduction in their energy costs or rental income, a portion of these gains is passed on to the investor. This means that your net profitability will always be lower than the maximum potential if you had financed and managed the installation yourself. It is therefore necessary to carefully evaluate the distribution of benefits to ensure that it remains satisfactory compared to the absence of initial investment and other perceived advantages. Here are some elements to compare:

• Fixed rental income: A guaranteed annual amount, often indexed.
• Savings sharing: A percentage of the savings made on the electricity bill.
• Sales revenue sharing: If electricity is resold to the grid, a share of the revenue.

It is crucial to fully understand how these benefits are calculated and distributed to anticipate the impact on your net result.

Before signing a third-party investment contract, a thorough analysis of the conditions is essential. The immediate financial advantages must be weighed against the long-term constraints and dependence on the partner. Consultation with legal and financial experts can help clarify all aspects of the contract and anticipate potential problems.

It’s important to be aware of the minor issues that can arise with solar panels. Sometimes, you need to pay attention to certain things to ensure everything works well. If you want to know more about these points and how to manage them effectively, feel free to visit our website to discover all the tips! We help you understand everything about photovoltaics so that your project is a success.

In summary: third-party investment, an accessible path to solar

To conclude, the third-party photovoltaic investment model presents itself as a particularly relevant solution for those who wish to equip themselves with solar panels without having to bear the initial costs. It allows for the enhancement of spaces, whether roofs or land, while participating in the energy transition. It is an approach that lightens the initial financial burden, transforming a potential expense into a revenue stream or a reduction in operating costs. Although the terms of the contract, particularly the duration of commitment and profit sharing, must be carefully examined, this formula offers a concrete entry point into the world of solar energy for many stakeholders, be they farmers, businesses, or local authorities. It is an option to seriously consider for anyone looking to optimise their assets while adopting a greener approach.

Frequently Asked Questions

What is a third-party investor in the solar sector?

It’s a person or company that pays to install solar panels on your roof or land. They take care of everything: buying the panels, installing them, and maintaining them. In return, they use the electricity produced to make money, for example by reselling it.

How does it work in practice?

You sign a contract, often for 20 to 30 years. The professional installs the panels at your property. You let them use your space. They manage everything, and you receive either rent or a share of the money earned from the electricity produced.

What are the advantages for me if I accept a third-party investor?

The big advantage is that you don’t have to pay anything upfront to install the panels. The professional advances all the money. You can also save money on your electricity bill if you consume the energy produced, and you don’t have to worry about maintenance.

Who can use this system?

This system is mainly suitable for owners who have large available areas, such as farmers with large sheds, or businesses with vast roofs or land. The idea is to use spaces that are not heavily utilised.

What is required to be accepted by a third-party investor?

You need to have a large surface area, such as a roof of more than 1000 m² or a large plot of land. It is also preferable to have a connection point to the electricity grid not too far away (less than 300m). The location must also be easy for installing the panels, without too many technical complications.

What are the responsibilities of the third-party investor?

The third-party investor is responsible for everything concerning the panels: they buy them, install them, repair them if they break down, and ensure they function well to produce maximum electricity.

What do I have to do as the owner?

You must allow access to the surface where the panels are installed. You must also respect the rules of the contract you have signed. For example, not preventing the professional from doing their work or carrying out maintenance when necessary.

Are there any disadvantages to this system?

Yes, you should know that the contract lasts a long time, often 20 to 30 years, which can be restrictive if you change your mind or sell your property. Furthermore, you share the profits with the investor, so your gains will not be the totality of the savings or income.