There are two ways to finance your investment: with your own funds or with financing from banks and other financial institutions (loans).
Financing an investment through a commercial loan is often advisable, as it does not tie up your business’ cash resources. Furthermore, instead of paying your monthly electricity bill, you can repay the loan using money saved from your electricity bills – in other words, without negatively affecting your business’ operating cash flow. VAT is deductible and the interest on your bank loan will be included in the operational expenses; therefore, it will have a positive impact on net profit. The depreciation of the solar PV equipment or machinery will also be included in your operational expenses.
The Kosovo Credit Guarantee Fund (KCGF) provides credit guarantees on eligible commercial loans. KCGF has opened a specialized window to support renewable energy and energy efficiency investments that can further support your business to access the financing you need to invest in solar PV.