IFC Invests $150 Million in BV Bank to Expand Solar Energy Access in Brazil

World Bank Group Member Supports Distributed Generation Solar Projects, Driving Sustainability and Climate Resilience.

The International Finance Corporation (IFC), a member of the World Bank Group, is investing $150 million (R$ 900 million) in BV Bank to enhance financing for small-scale distributed generation (DG) solar panel systems in Brazil. This initiative aims to increase access to solar energy for retail consumers, diversify the country's energy matrix, and strengthen its transition toward sustainability.

Solar energy is the fastest-growing energy source in Brazil, yet it accounts for less than 10% of the country's total energy consumption. Distributed generation is a vital component, contributing over 70% of solar capacity additions in 2023. However, a lack of accessible financing remains a significant barrier, with 78% of potential customers reporting difficulties securing funding in 2022.

To close this gap, the IFC is partnering with BV Bank to make solar energy more affordable for residential users. The five-year $150 million loan will exclusively fund small-scale residential solar systems, promoting clean energy adoption in households across Brazil.

IFC’s Comprehensive Support for BV Bank

Beyond financial backing, the IFC will provide BV Bank with expertise in the solar sector, helping the institution build capacity and grow its renewable energy financing portfolio. This support aligns with the IFC’s commitment to promoting sustainability in Brazil’s banking sector and its strategy to ensure investments align with the Paris Agreement.

Helena de la Torre, IFC’s Regional Manager for Financial Institutions in Brazil and the Southern Cone, highlighted the partnership's significance: “We are pleased to work with BV to scale up financing for solar solutions. This initiative supports Brazil’s efforts toward sustainable economic growth and climate resilience, helping the country on its journey to becoming a global leader on climate issues. This investment is also important to drive the expansion of financing for solar DG projects in Brazil, encouraging other financial institutions to replicate the business model.”

Scaling Green Finance for a Sustainable Future

The partnership supports the World Bank Group’s five-year strategy for Brazil, which focuses on fostering productivity-led growth, promoting inclusivity, and unlocking the nation’s potential as a global leader in sustainability. BV Bank’s commitment to green funding underscores the transformative potential of these investments.

Rogério Monori, Executive Director of Wholesale at BV Bank, emphasized the bank’s progress in advancing its environmental, social, and governance (ESG) agenda: “This partnership with IFC is recognition that we are evolving with the ESG agenda and contributing to a low-carbon economy by financing energy transition projects. With this loan, we have more than R$ 3.5 billion in green funding for 2024, totaling R$ 4.62 billion in active green funding.”

Driving Broader Impact and Climate Resilience

The IFC anticipates that its investment in BV Bank will catalyze further growth in solar DG financing across Brazil. By encouraging other financial institutions to replicate this model, the initiative aims to significantly expand access to renewable energy financing, benefiting a broader range of customers and making solar systems more affordable for Brazilian households.

This project is a step toward environmental sustainability and climate resilience, reinforcing Brazil’s position as a leader in global climate initiatives and green finance. It highlights the potential for public-private partnerships to address pressing climate challenges while fostering economic inclusivity and sustainable development.