IFC Invests $20 Million to Expand Solar Financing and Climate Resilience in Brazil

The funding supports the Sol Agora Green II ESG FDIC (Fundo de Investimento em Direitos Creditórios), Sol Agora’s second fund, which reached BRL 900 million in commitments.

The International Finance Corporation (IFC) has invested $20 million (approximately BRL 115 million) in Sol Agora, a leading fintech provider of long-term financing for distributed solar power systems across Brazil. This investment is part of IFC’s broader commitment to tackling climate change and fostering sustainable energy solutions in emerging markets.

Sol Agora specializes in financing micro and mini-distributed solar power generation assets, primarily for Brazilian households. By enabling more Brazilians to install solar energy systems, the initiative aims to diversify Brazil’s energy matrix, enhance climate resilience, and contribute to the nation’s transition to a low-carbon economy. Distributed solar systems also reduce energy transmission and distribution losses, resulting in lower energy bills for households and businesses.

The funding supports the Sol Agora Green II ESG FDIC (Fundo de Investimento em Direitos Creditórios), Sol Agora’s second fund, which reached BRL 900 million in commitments. The first fund, launched in 2022, has raised over BRL 1.4 billion, financing solar installations for more than 43,000 clients nationwide. Sol Agora’s innovative digital platform facilitates loan origination for households and small to medium enterprises (SMEs) seeking solar energy solutions.

Expanding Access to Climate Finance

IFC’s investment aligns with its strategy to expand access to climate finance in emerging markets. By investing in Sol Agora’s solar asset-backed securities, IFC aims to strengthen Brazil’s capital markets and make solar installations more affordable for households and SMEs. This partnership also introduces a nascent asset class to Brazil’s financial ecosystem, fostering long-term growth in renewable energy financing.

“This initiative supports Brazil’s journey toward sustainable economic growth and climate resilience,” said Manuel Reyes-Retana, IFC Regional Director for South America. “It aligns with IFC’s five-year strategy for Brazil, emphasizing a greener, more inclusive, and productive economy.”

Scaling Climate Action in Brazil

Brazil accounts for 40% of Latin America and the Caribbean’s greenhouse gas emissions and has committed to ambitious climate targets, including reducing emissions by 48% by 2025 and achieving net-zero by 2050. Renewable energy, excluding hydropower, is expected to grow from 22% of Brazil’s energy mix in 2022 to 45% by 2030.

IFC’s investment is part of an estimated $1.3 trillion climate-related investment potential in Brazil between 2016 and 2030. Meeting these targets requires significant private-sector financing, with annual investments equivalent to 4.3% of Brazil’s GDP projected through 2030.

Reinforcing Leadership in Renewable Energy

Antonio Nuno Verça, CEO of Sol Agora, emphasized the significance of the partnership: “This collaboration with IFC marks a transformative milestone, enhancing our capital structure and fundraising capabilities. With IFC’s global expertise, we are positioned to scale our impact and better navigate future opportunities.”

Accelerating a Greener Future

Through this investment, IFC and Sol Agora aim to empower thousands of Brazilian households and businesses to embrace renewable energy, reduce carbon footprints, and support the nation’s broader environmental and economic goals. The partnership represents a step forward in building a resilient and sustainable energy future for Brazil.