European Solar ABS: Potential to Support Green Transition?

This report was produced by KBRA, a member of IPFA. 

Asset-backed securities (ABS) based on solar photovoltaic (PV) panel financing collateral has been a growing part of the securitisation market in the United States for the past seven years, accounting for USD 8.6 billion issued in 2022 alone. This contrasts with Europe, where the securitisation market has yet to become a source of capital funding for the expansion of rooftop solar PV lending. In KBRA’s view, the securitisation market could offer a vital source to recycle funds into new lending as the European Union (EU) targets an ambitious expansion of rooftop solar PV installations.

In this report, KBRA’s team explains some of the market dynamics, how the product is structured in the US, and how the European market may develop in the future.