Sol Agora, a Brookfield-controlled fintech focused on solar energy credit in Brazil, has launched Sol Tempus Capital, its own asset management firm. The new entity starts with approximately R$400 million under management and expects to double that figure to R$800 million by December. It has set a longer-term target of R$1.5 billion in assets under management by 2027.
Starting with R$400 Million Under Management
The asset manager has received authorization from Brazil's securities regulator, the CVM, to act as a portfolio administrator. Flávio Suchek will serve as CEO, while Eduardo Solamone becomes CIO after leading the investment area at Sol Agora. The initial investor base already includes foreign capital, and the firm aims to expand that participation further.
Vertical Integration in Solar Credit
Sol Agora has originated more than R$2.3 billion in solar financing for over 95,000 clients since its creation in 2022. The fintech has also structured five receivables investment funds, known locally as FIDCs, to fund those operations. According to the company, demand for solar credit currently exceeds its financing capacity, and an in-house manager should broaden the funding base.
Using Proprietary Data to Lower Costs
The company says bringing origination, structuring, and asset management under one roof creates an advantage in risk assessment. Solamone said Sol Agora can monitor each contract's performance, the operation of financed equipment, and client payment history. That integration may produce more competitive credit for customers and better risk-adjusted returns for investors.
A Resilient Distributed Generation Market
Brazil's distributed solar generation segment has continued to expand despite high interest rates and reduced subsidies. The number of solar systems in homes, buildings, and commercial establishments reached 3.47 million, with installed capacity of 35.9 gigawatts. Sol Agora estimates the solar credit market at around R$9 billion per year, roughly R$750 million per month.
Funding Momentum and Competitive Landscape
Since 2022 Sol Agora has raised R$3 billion from institutional investors through FIDCs to support its lending. In its most recent transaction, it secured R$600 million, with Brookfield taking the mezzanine tranche, enough to finance around 30,000 new installations. The company competes with lenders including BV, Santander, Solfácil, Sicredi, Banco do Brasil, Bradesco, and Caixa.
Payback and Consumer Value Proposition
Suchek noted that a financed distributed generation system typically pays for itself in 3.5 to 4.5 years in Brazil, compared with 8 to 12 years in Germany. Most solar credit customers finance the full value of the installation, and monthly loan payments are often covered by electricity bill savings. After the financing period, the customer's power bill can fall by 80% to 90%, while the system lasts around 20 years.
Financing Penetration and Macro Headwinds
In the first half of this year, about 33% of distributed generation kit sales were financed, down from a peak of 57% in 2021, according to consultancy Greener. Suchek said high household debt levels have made some lenders more cautious, and Sol Agora has also adjusted its risk appetite. When household debt burdens ease, the company expects financing penetration to rise to between 40% and 45%, which would accelerate sales.
Batteries, SMEs, and Regulatory Outlook
Sol Agora plans to increase its average ticket by including batteries in solar kits and to expand transactions with small and medium-sized companies. Suchek believes battery projects may eventually receive regulatory incentives to manage excess daytime generation. While Brazil's energy regulator has faced pressure to include distributed generation in curtailment measures, he said such cuts for rooftop solar remain operationally and politically difficult.
Sol Agora's entry into asset management marks a move to capture more value from the solar credit it originates while broadening its funding sources. The company expects Sol Tempus Capital to close the year with R$800 million under management and reach R$1.5 billion by 2027. For now, the focus remains almost entirely on credits originated by Sol Agora, with third-party portfolios and new private credit strategies possible only after this foundation is consolidated.
Source: Exame