The energy transition is underway, and solar photovoltaics is a major pillar of it. If you are considering installing solar panels, the initial investment may seem substantial. Fortunately, third-party photovoltaic investment offers a clever solution to bring your project to fruition without straining your cash flow. This article guides you through this mechanism, explaining how it works, its advantages, and the steps to follow to find the right partner.

Key Points to Remember about Third-Party Photovoltaic Investment

• Third-party photovoltaic investment allows your solar installation to be financed by an external partner, thereby easing your initial financial burden.
• This model often relies on contracts such as energy performance contracts or long-term leases (bail emphytéotique), with commitment periods generally of 20 years or more.
• Opting for third-party investment simplifies financing, provides turnkey management, and reduces risks, while potentially opening up eligibility for tax benefits.
• To be eligible, criteria such as sufficient operating area and proximity to an Enedis connection point are often required.
• Third-party photovoltaic investment differs from other financing options such as equity or bank loans due to its no-personal-contribution approach.

Understanding Third-Party Photovoltaic Investment

Third-party photovoltaic investment represents an innovative approach to realising your solar energy project without mobilising your own funds. It is a financial arrangement where an external party, the third-party investor, covers all costs related to the acquisition and installation of your solar power plant. In return, the investor operates the installation for their own profitability. This method stands out for its ability to make solar energy accessible, even for large-scale projects, by eliminating the initial financial barrier. It is an interesting alternative to traditional financing, whether through equity or bank loans, offering a turnkey solution for green electricity production. The objective is to allow owners to benefit from the advantages of solar energy without direct financial commitment. It is important to fully understand the terms of these contracts to ensure that the project meets your expectations. Good planning, including studying the orientation and inclination of the panels, is essential to maximise energy production, as highlighted by the importance of an in-depth solar study to optimise panel inclination.

Definition of Third-Party Photovoltaic Investment

Third-party photovoltaic investment is a financial mechanism where an external entity, the third-party investor, finances the total costs of a solar installation. The site owner provides their land or roof for the installation. The investor covers the purchase of equipment, its installation, and often its maintenance and associated administrative procedures. In return, the investor operates the solar power plant to generate income, either by selling the electricity produced or by benefiting from other forms of remuneration defined contractually. The owner, for their part, benefits from the installation without having to bear the initial costs, and can sometimes consume a portion of the electricity produced at an advantageous rate or simply benefit from the valorisation of their property. It is a form of partnership where financial risks are primarily borne by the investor.

The Role of the External Investor

The external investor plays a central role in third-party photovoltaic investment. They are the financial driver of the project, providing the necessary capital for the purchase and installation of the solar system. Beyond financing, their role often extends to complete project management. This includes equipment selection, supervision of installation work, management of administrative authorisations and connections, as well as the upkeep and maintenance of the installation throughout the contract duration. The investor is therefore a technical and financial partner who ensures the smooth operation and profitability of the solar power plant. Their responsibility is to optimise energy production and manage operational risks to guarantee a return on their investment. They are often an expert in the solar energy sector, bringing their know-how to ensure the performance of the installation.

Advantages for the Owner

For the owner, third-party photovoltaic investment offers several significant advantages. The main one is the possibility of having a solar installation without any initial investment. This significantly reduces operating expenses by lowering electricity bills through self-consumption, or by generating rental income for land occupation. Furthermore, the owner often benefits from a professionally managed installation, including upkeep and maintenance, which relieves them of any technical concerns. In some cases, the contract may also include the renovation or construction of a building, adding extra value. It is a solution that facilitates access to renewable energy and can help improve the environmental image of the company or individual. The advantages can be summarised as follows:

• No initial investment
• Reduced energy costs or income generation
• Technical management delegated to a professional
• Contribution to the energy transition
• Potential for building renovation or construction at no cost

How Third-Party Photovoltaic Investment Works

Third-party photovoltaic investment is a structured approach to realising a solar project without mobilising your own funds. It relies on the intervention of an external party who covers the initial investment. This mechanism unfolds in several key stages and is based on specific contracts to frame the relationship between the parties.

Key Project Stages

The implementation of a project via third-party investment follows a well-defined path. It begins with an in-depth negotiation phase between the site owner and the potential investor. During this period, all aspects of the future agreement are discussed and clarified: the responsibilities of each party, the conditions for sizing the installation, financial aspects, and any suspensive clauses. These elements are then formalised in a preparatory document, which may take the form of a promise of a long-term lease (bail emphytéotique) or an energy performance contract. Once these foundations are established, the project progresses to the design, installation, and commissioning phases of the solar equipment.

Different Types of Contracts

Two main types of contracts structure third-party photovoltaic investment:

• The energy performance contract: Under this framework, the investor acquires and installs the solar power plant. The owner benefits from the electricity produced for their own needs, in exchange for paying a fee to the investor. The amount of this fee is contractually fixed.
• The long-term lease (bail emphytéotique): This contract concerns the provision of land or a roof for a long duration. The investor installs and operates the solar power plant there. The owner receives compensation or a fee for making their property available. The energy produced is generally sold by the investor at a guaranteed rate, such as those offered by EDF OA.

Duration of Commitment

The commitment period in a third-party photovoltaic investment project is a central element negotiated from the outset and stipulated in the final contract. Typically, this duration extends for a minimum period of 20 years. This timeframe is chosen to allow the investor to amortise their initial capital and achieve satisfactory long-term profitability. The exact duration may vary depending on the specificities of the project and the agreements concluded between the parties, but it is always formalised in writing, often before a notary in the case of a long-term lease (bail emphytéotique).

It is important to fully understand that the duration of the commitment dictates the period during which the investor operates the installation and receives associated revenues, while assuming management and maintenance responsibilities.

Why Choose Third-Party Photovoltaic Investment?

Third-party photovoltaic investment presents itself as a particularly attractive solution for those who wish to adopt solar energy without bearing the initial financial burden. This approach allows for the realisation of a solar panel installation project, or even the construction or renovation of a building, without having to mobilise your own funds or take out a bank loan. It is a clever way to benefit from the advantages of green energy production while preserving your cash flow. One of the major assets of this model is that it gives you access to complete expertise and turnkey project management. Investors specialising in photovoltaics bring their know-how to design and implement a high-performing and profitable installation. Furthermore, they handle the majority of administrative procedures, often complex and time-consuming, thus freeing you from these constraints. By delegating these aspects, you save valuable time and approach your project with greater peace of mind. Opting for third-party investment also significantly reduces the risks associated with your project. Since financing is provided by a third party, you are less exposed to the uncertainties of low short-term profitability or cash flow problems. This allows you to focus on your core business, with full confidence. Finally, this scheme can open the door to tax benefits and state aid, thus facilitating the achievement of your environmental objectives and optimising the overall profitability of your installation. It is important to carefully study the different financing options available, such as self-financing or bank loans, to choose the one that best suits your situation. Third-party investment can be an excellent alternative, especially if you aim for a total sale of the electricity produced, a model that offers a stable income in the long term [60b6].

Facilitating Your Project’s Financing

The main appeal of third-party photovoltaic investment lies in its ability to eliminate the initial financial barrier. It allows for the realisation of a solar installation project without having to commit own capital or take out a loan. This approach is particularly beneficial for businesses or individuals who wish to reduce their energy expenses or contribute to the ecological transition, but whose equity is limited. The external investor covers all costs related to the purchase and installation of solar panels. In return, the owner can benefit from the electricity produced at an advantageous rate or, in some cases, from the free renovation or construction of a building on which the installation is carried out. It is a solution that makes solar energy accessible to a greater number of people, without compromising financial stability [7b1f].

Benefiting from Turnkey Expertise

Engaging a third-party investor means ensuring you work with seasoned professionals in the photovoltaic field. These experts support you at every stage, from design to commissioning of the installation. They bring their expertise to optimise the performance and profitability of your solar power plant. Furthermore, they manage all necessary administrative procedures before work begins, which represents a considerable saving of time and peace of mind for the owner. This comprehensive support ensures that the project complies with current regulations and is optimised to maximise energy gains [cb73].

Reducing Investment Risks

Third-party photovoltaic investment helps minimise the financial risks associated with a solar project. As the external investor bears the initial cost and manages the installation, the owner is protected against potential short-term profitability drops or cash flow problems. This absence of direct personal investment significantly reduces risk exposure. The third-party investment contract is generally concluded for a long duration, often 20 years or more, which ensures stability and predictability of income for the investor, while offering the owner an energy solution without financial worry.

Accessing Tax Benefits

The installation of solar panels under a third-party investment scheme may qualify for various tax benefits and subsidies. These schemes aim to encourage the adoption of renewable energies. Depending on your situation and the type of project, you could be eligible for state aid, such as self-consumption premiums or guaranteed purchase tariffs for electricity injected into the grid. These financial incentives help improve the overall profitability of the installation and accelerate the return on investment. It is advisable to inquire about the schemes in force to make the most of them.

Contracts and Agreements in Third-Party Investment

When considering a third-party photovoltaic investment project, the nature of the contracts and agreements you sign is paramount. These documents define the rights and obligations of each party, as well as the operating procedures of the solar installation. It is therefore essential to fully understand them before committing.

The Energy Performance Contract

Under an energy performance contract, an external investor covers the purchase and installation of a solar power plant on your property. You then benefit from the electricity produced for your own needs. In return, you pay a fee to the investor, the amount of which is fixed in the contract. This model allows you to reduce your electricity bills while avoiding an initial investment. It is important to note that the fee paid reduces the amount of savings made on your energy bill.

The Long-Term Lease (Bail Emphytéotique)

The long-term lease (bail emphytéotique) is another commonly used type of contract. Here, the investor leases your land or roof for a long duration (often 20 years or more) to install and operate a photovoltaic power plant there. The main advantage for the owner is often the possibility of having a building constructed or renovated at no cost. In this case, the owner does not directly benefit from the electricity production; it is the investor who profits from it. However, an option to purchase the installation at an advantageous price at the end of the contract can be negotiated.

Clauses to Negotiate

Several points deserve particular attention when negotiating contracts. These include:

• Duration of commitment: This is generally long to ensure the investor’s profitability, often a minimum of 20 years.
• The fee or rent: Its amount and indexation terms must be clearly defined.
• The purchase option: The conditions and price for purchasing the installation at the end of the contract are key elements to anticipate.
• Responsibilities in case of damage: Who covers repairs in the event of bad weather or malfunction?
• Management of administrative procedures: Who handles authorisations and connections?

It is advisable to be accompanied by professionals to ensure that the contract best reflects your interests and the specificities of your project. Finding a reliable partner is a key step for the success of your solar project, and platforms exist to help you find qualified installers.

The establishment of a third-party photovoltaic investment involves a negotiation period that can span several months. It is therefore important to be patient and thoroughly prepare this phase to secure the agreement.

Dependence on the investor can also be a constraint, as you will not have complete freedom in decisions concerning the power plant, such as its sizing or how the energy is used. It is therefore important to choose your partner carefully and understand the implications of this type of financing.

Management of the Solar Installation and its Energy

Once your photovoltaic installation is in place, managing the energy produced and the equipment itself becomes an important step. It’s about understanding who does what and how the energy is best utilised.

The third-party investor takes ownership of the solar installation for the duration of the contract. This means they are generally responsible for the financial aspects related to the equipment, including its upkeep and maintenance. They ensure that the panels function correctly and comply with current standards. The investor may delegate maintenance to specialised companies, but the ultimate responsibility lies with them. It is important to clearly define these responsibilities in the contract to avoid any ambiguity. For example, contracts may specify who manages repairs in the event of a breakdown or the cleaning of the panels. It is advisable to inquire about the different maintenance options to choose the one that best suits your project and your financial partner. Finding a good installer is a crucial first step for the success of your solar project choosing the right photovoltaic installer.

The solar energy produced by your installation can be used in several ways. The first, and most common, is self-consumption: you directly consume the electricity produced to power your appliances. This helps reduce your electricity bill and your dependence on the public grid. Any surplus energy not consumed can be injected into the national electricity grid. In this case, a purchase contract is established with an approved buyer, often EDF OA, who remunerates you for this electricity. It is possible to store some of this energy in batteries for later use, thus offering greater flexibility. The modularity of solar energy allows production to be adapted to your needs modular ecological energy. The objective is to maximise the use of green energy produced.

Regular maintenance of solar panels is essential to guarantee their optimal performance and longevity. Although the investor is responsible for maintenance, it is important to know what this entails. This generally includes cleaning the panels to remove dust, leaves, or other debris that could reduce their efficiency. It is also necessary to check the condition of the fixings, cables, and the inverter. Third-party investment contracts often include specific clauses regarding the frequency and terms of these operations. It is recommended to use qualified professionals for these interventions to ensure the safety and compliance of the installation. Verification of the installation’s compliance by an organisation such as Consuel is a mandatory step Enedis connection request. Solar panels have a long lifespan, but good maintenance helps maintain their efficiency over several decades. Here are the main points to check:

• Panel cleaning: once or twice a year, depending on the environment.
• Visual inspection: checking for damage to panels or cables.
• Inverter check: ensuring proper functioning and absence of error messages.
• Checking electrical connections: ensuring they are well insulated and secure.

Preventative maintenance is key to avoiding costly breakdowns and extending the lifespan of your solar installation. It ensures that you continue to produce electricity efficiently and safely.

Finding a Third-Party Investor for Your Solar Project

Finding the right partner for your solar project is a crucial step. It involves finding a player who will not only finance the installation but also share your long-term vision. Several approaches can be adopted to identify these investors.

Methods for Finding Investors

The first step often involves exploring online platforms specialising in renewable energies and project financing. Many companies offer third-party photovoltaic investment solutions, such as Idex for your project. It is advisable to draw up a list of potential players and compare their offers. Do not hesitate to consult customer reviews available online to guide you in your selection. Professional trade fairs dedicated to solar energy or agriculture can also be prime locations to meet investors directly and discuss your project.

Partner Selection Criteria

Beyond a simple financial proposal, several elements should guide your choice. The financial stability of the investor is paramount, as is their experience in managing solar projects similar to yours. It is important to ensure that the investor fully understands the specificities of your activity and your site. The clarity of contractual terms and flexibility in negotiation are also points not to be overlooked. Good communication and a trusting relationship are the foundations of a successful partnership.

Importance of Customer Reviews

Feedback from other owners who have already used third-party investors is a valuable source of information. They can reveal a partner’s reliability, the quality of their customer service, and how they handle unforeseen events. Look for testimonials on contract transparency, adherence to commitments, and responsiveness in case of problems. These reviews will help you avoid unpleasant surprises and choose a trustworthy partner for the duration of your project, which is often at least 20 years.

Eligibility for Third-Party Photovoltaic Investment

For a third-party photovoltaic investment project to be accepted by an investor, certain criteria must be met. These conditions aim to guarantee the long-term profitability and viability of the project. It is therefore important to thoroughly check these points before embarking on the process.

Operating Area Criteria

Investors generally look for projects of a certain scale. A large installation area allows for more solar panels to be installed, which translates into greater electricity production and, consequently, higher revenues for the investor. A minimum operating area, often around 1,000 m², is therefore frequently required. This can concern the roofs of industrial, agricultural, or commercial buildings, as well as unused land.

Proximity to an Enedis Transformer

Connecting the solar installation to the electricity grid is an essential step. To minimise the costs associated with this connection, third-party investors favour sites located at a reasonable distance from an Enedis transformer. Generally, proximity of less than 300 metres is considered a significant advantage. This reduces civil engineering and cabling expenses, making the project more financially attractive. You can inquire with Enedis to find out about available connection points near your site.

Characteristics of the Installation Surface

The condition and characteristics of the surface intended to host the solar panels play an important role. A roof in good condition, without the need for major renovation, is preferable. Similarly, optimal inclination and orientation of the panels, as well as flat ground for ground-mounted installations, facilitate installation and improve energy production efficiency. Overly complex or costly developments can deter an investor. It is therefore advisable to ensure that your site is in favourable conditions for an efficient and economical solar installation. For agricultural projects, evaluating the profitability of such an installation is a key point, as detailed in the profitability analysis for an agricultural building.

Here is a summary of the points to consider:

• Minimum area: Often 1,000 m².
• Connection: Proximity to an Enedis transformer (ideally less than 300 m).
• Surface condition: Roof in good condition, flat ground, favourable orientation and inclination.

Comparison with Other Financing Solutions

To realise your solar installation project, several financing options are available to you, each with its specificities. It is essential to examine them carefully to choose the one that best suits your situation.

Self-Financing (Equity Financing)

Opting for self-financing means you use your personal savings to cover the entire costs of your photovoltaic installation. The main advantage is the absence of interest charges, which accelerates the return on investment. Furthermore, you benefit from complete freedom in managing your project, without administrative procedures related to a loan. However, this approach can reduce your savings capacity for other needs or unforeseen events. It is therefore important to assess whether your current cash flow allows you to bear the investment without compromising your financial security.

Bank Loans and Dedicated Loans

Bank loans represent a common route for financing a solar installation. We mainly distinguish between personal loans, which offer great flexibility regarding the use of funds, and dedicated loans. The latter is specifically linked to the purchase of your solar equipment (panels, inverters, etc.) and paid directly to the supplier. Dedicated loans have the advantage of being more secure, as they can be cancelled if the project is not realised, and often offer more advantageous interest rates. It is advisable to compare offers from several banks to obtain the best conditions. Another option is loan consolidation, which can simplify the management of your finances if you already have several ongoing loans.

It is always wise to consult your bank advisor to explore the different loan options and determine the one that best aligns with your financial profile and the objectives of your solar project.

Crowdfunding

Crowdfunding allows funds to be collected from a large number of people. Each contributor receives in return a portion of the profits generated by the sale of the electricity produced. This method is particularly suitable for large-scale projects, such as agricultural installations, where revenues are sufficient to remunerate investors. For domestic installations, it is generally less relevant. An interesting alternative for farmers wishing to develop solar projects is to turn to specialised companies that can fully finance the installation in exchange for operating the power plant over a long period, while also covering maintenance. This is a solution that allows a farm to be transformed into a solar energy producer without initial outlay, benefiting from a turnkey solution for your agricultural operation.

Case Studies of Third-Party Investment

Third-party photovoltaic investment finds concrete applications in various sectors, offering significant advantages for professionals seeking to optimise their energy costs and enhance their infrastructure without mobilising their own capital. This approach allows for the realisation of large-scale projects, whether it involves equipping agricultural operations, industrial sites, or tertiary buildings.

Benefits for Farmers

For the agricultural sector, third-party photovoltaic investment represents a major opportunity. Farmers can thus equip their barns, greenhouses, or even their land with solar installations without having to bear the initial cost. The energy produced can be used to power farm equipment, thereby reducing electricity bills. Furthermore, some contracts may include the renovation or construction of agricultural structures, such as parking canopies, which offer a dual benefit: vehicle protection and energy production. The investor, for their part, recoups their investment by exploiting electricity production over a long period, often more than 20 years. It is important to clearly define the terms of the contract, particularly the proportion of energy that will be consumed by the farmer and that which will be resold.

Advantages for Businesses

Businesses, regardless of their size, can leverage third-party investment to reduce their carbon footprint and energy expenses. Installing solar panels on the roofs of factories, warehouses, or offices allows them to benefit from clean, cheaper energy. The investor handles installation and maintenance, freeing the company from these technical and financial constraints. This allows businesses to focus on their core activity while improving their brand image through a concrete environmental commitment. The possibility of benefiting from state aid, such as the self-consumption premium, can also make the scheme even more attractive. It is essential to choose a reliable partner to guarantee the project’s longevity and optimise returns on investment.

Value Enhancement by Property Managers

Property managers and real estate managers see third-party photovoltaic investment as a means to improve the energy performance of the buildings they manage and offer an additional service to occupants. Installing solar panels can increase the rental value of properties and attract environmentally conscious tenants. In the case of communal buildings, the principle is similar: the local authority grants an operator the right of occupation to install solar panels, without having to bear any direct costs. The municipality then benefits from the energy produced or a fee, without financial or operational commitment. This is an effective way for a municipality to engage in the energy transition.

Here is an overview of the potential benefits:

• Reduced energy costs: Significant reduction in electricity bills through self-consumption.
• Asset enhancement: Improved energy performance and attractiveness of real estate properties.
• Environmental commitment: Contribution to the energy transition and reduction of carbon footprint.
• No initial investment: Allows projects to be carried out without mobilising own funds or taking out a loan.

Third-party photovoltaic investment is a financing solution that allows solar projects to be realised without personal outlay. It is based on a partnership where an external investor covers the installation and maintenance of solar panels, in exchange for exploiting energy production over a contractually defined period.

Financial Aspects and Long-Term Profitability

Once your solar installation is in place thanks to third-party investment, it is natural to consider the financial returns and the long-term viability of your project. Several key elements deserve your attention to fully understand long-term profitability.

Installation Purchase Option

Most third-party investment contracts include a purchase option clause. This option gives you the possibility to become the owner of the installation at the end of the contractual period, often at an advantageous rate. This is an excellent way to recover the full benefits of your solar installation after having benefited from no-outlay financing. It is important to negotiate this purchase price from the outset to guarantee the future profitability of your project. The lifespan of photovoltaic panels can exceed 25 years, meaning that after the purchase, you could enjoy free electricity production for many years.

Post-Contract Maintenance Costs

When considering the purchase of the installation, you must anticipate the costs related to upkeep and maintenance. Although the external investor covers these aspects during the contract period, after the purchase, this responsibility will fall to you. This includes regular cleaning of the panels, checking connections, and potentially replacing components such as inverters, whose average lifespan is approximately 10 to 15 years. It is wise to budget annually for these operations to maintain your system’s performance. Good planning of these post-contract costs is essential for sustainable profitability.

Revenue Potential After the Contract Period

Beyond simply reducing your electricity bills, a solar installation can generate additional income, especially if you have opted to resell the electricity produced. Once you own the installation, you can continue to sell electricity to a supplier or use it for your own consumption, further reducing your energy expenses. The market for roof leasing for photovoltaics in 2025 shows promising expansion prospects, which can positively influence the resale price of your production. It is advisable to inquire about current purchase tariffs and any available aid to maximise your gains. A well-managed project can thus become a stable source of income in the very long term, contributing to the overall profitability of your initial investment, even if it was initially financed by a third party. A well-sized installation can pay for itself in 8 to 12 years, depending on operating conditions [b4ad].

It is important to note that the profitability of a solar project depends on several factors, including energy market conditions and the actual production of the panels [6690]. Careful planning and seeking expert advice are therefore vital to optimise the financial viability of your project [66df].

Let’s talk money and what you’ll gain in the long run. Installing solar panels is a good plan for your wallet and for the planet. Want to know how much you can save? Come and discover how solar can bring you big returns on our website!

Conclusion

In summary, third-party photovoltaic investment presents itself as an interesting avenue for professionals wishing to install solar panels without mobilising their own funds or resorting to a bank loan. It allows for the realisation of large-scale projects, or even to benefit from the construction or renovation of a building, all without upfront cash. However, it is important to bear in mind that this type of agreement represents a long-term commitment, often twenty years or more. During this period, the management and operation of the installation fall to the third-party investor. To optimise the return on investment, it may be wise to consider a clause for purchasing the solar farm at the end of the contract. As panels have a significant lifespan, this opens the door to many years of green electricity production at a lower cost.

Frequently Asked Questions about Third-Party Photovoltaic Investment

What is third-party photovoltaic investment?

It’s a way to have solar panels installed without having to pay for them yourself. Another person, called the ‘third-party investor’, pays for everything: the purchase of the panels, their installation, and sometimes even their maintenance. In return, this person uses the electricity produced to earn money.

How does it work in practice?

Generally, you sign a contract with the investor. They install the panels on your roof or land. You benefit from the electricity produced, often at an advantageous price, or you receive a sum of money. The investor, for their part, sells the electricity or uses the installation to make profits over the contract duration.

What are the advantages for me?

The main advantage is that you don’t have to spend any money upfront. You can also benefit from a solar installation without worrying about its management or maintenance, as the investor takes care of it.

How long does such a contract last?

The duration is decided when the contract is signed. Often, it’s for a long period, such as 20 years or more. This allows the investor to amortise their cost and make profits over time.

Who can benefit from third-party investment?

This system is often offered to businesses, farmers, or owners of large buildings. You generally need to have a sufficiently large area, such as a roof of more than 1000 m², and be close to an electricity connection point.

What types of contracts exist?

There are mainly two types: the energy performance contract, where you use the electricity produced, and the long-term lease (bail emphytéotique), where the investor leases your land or roof to install their solar power plant.

Can I buy the installation afterwards?

Sometimes, yes. The contract may include an option for you to purchase the installation at the end of the agreed period, often at an attractive price. This is a good thing for enjoying free electricity later on.

How do I find a third-party investor?

You can search online for solar companies that offer this type of financing. It’s important to compare offers and read reviews from other customers before choosing a partner.