Solar energy

Your expert for questions

Heiko Stohlmeyer, Director, Erneuerbare Energien bei PwC Germany

Heiko Stohlmeyer
Director, Renewable Energies at PwC Germany
Tel: +49 171 3344297
Email

Harnessing the market potential of solar energy

Solar energy – or photovoltaics (PV) – has become a central pillar of renewable energies in Germany and plays a key role in the country’s energy transition. Germany has made considerable progress in the expansion of solar energy in recent years and is now one of the world’s leading countries in this field. Germany’s Renewable Energy Sources Act (EEG) has been a key instrument in providing financial support for solar energy systems, further strengthening the economics and acceptance of this sustainable energy source. Solar energy therefore has a key role to play in reducing CO2 emissions and switching to climate-friendly power generation in Germany. However, there are several technical, economic, legal and tax issues that need to be addressed before a photovoltaic project can be successfully implemented.

Our experts have decades of experience in this field. Leverage our expertise and specialised global and multi-disciplinary industry network to ensure the success of your project.

Continue reading to find out more about us. Or give us a call. We look forward to hearing from you.

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Providing holistic advice: To ensure that photovoltaics is right for you

PwC has been successfully advising its clients since the beginning of the photovoltaic boom in 2008 against the backdrop of a constantly changing legal framework. Our services range from strategy development to execution. We prepare market potential analyses, profitability calculations and financing models. When buying or selling projects, you can also rely on our many years of experience in due diligence and transaction services. Or you can draw on PwC’s extensive expertise in conceiving, financing and implementing new business ideas.

As part of our transaction advisory services, our photovoltaic energy experts provide professional support at key stages of fund, company and project transactions and investments. 

Sell-side consulting
As your sell-side consultants we work closely with you to optimise the sales process. We can help you determine the value, identify the strengths and weaknesses of your project or company and develop an effective sales strategy. We also provide guidance on finding a buyer/strategic partner for your project and prepare all the necessary transaction documents, including an information memorandum, term sheet or customised financial model. Our goal is to collaborate with you to ensure a successful transaction through the best possible sales process.

Buy-side consulting
As your buy-side consultants we will work closely with you to identify and evaluate the right investment opportunities. We help you to find investment and acquisition opportunities and support you throughout the entire purchase process. We help you to find investment and acquisition opportunities and support you throughout the entire purchase process. This includes due diligence of the project, valuation and purchase price determination, submission of an offer and the signing of contracts.

Commercial due diligence
Our Commercial Due Diligence (CDD) provides a thorough analysis of the economic assumptions used to value and purchase renewable energy projects, as well as business model and market analyses. We identify potential risks, opportunities and value drivers to ensure your investment decision is well founded.

Our valuation and benchmarking services provide you with accurate analysis to help you make informed investment decisions. We help you to identify opportunities and minimise risks.

Project, portfolio and company valuation
Our experts conduct targeted project, portfolio and company valuations to validate the value of your investments and businesses. We consider all relevant factors, from financial aspects and market conditions to strategic considerations. We provide valuations of wind and solar farms and project portfolios at every stage of project development, with the aim of determining a fair market sale or purchase price.

Benchmarking
Our benchmarking analyses allow you to compare the economic assumptions of your project and company with current market data. For example, we use our benchmark database, which contains a wide range of data on solar, onshore and offshore wind projects, to check that the economic assumptions made in the bid reflect current market circumstances.

Our strategic consulting services focus on market analyses, market entry strategies, plausibility checks of business plans and the preparation of expert opinions to help you make informed business decisions.

Market analysis
Our experts carry out customised market analysis on markets and innovative new business models, such as hybrid power plants, battery storage or hydrogen production. We use our extensive network, databases and specialist knowledge of industry trends, the competitive landscape and market potential. We provide market analyses and research on a range of renewable energy issues to inform strategic decision-making.

Market entry and analysis of business plans
We develop tailored market entry strategies based on your specific requirements. We also check and analyse the plausibility of business plans in the various renewable energy market segments. We advise companies on strategic decisions, such as entering a specific renewable energy market or expanding existing business activities. For this purpose, we analyse the market environment and consider the current corporate structure and strategy in our recommendations.

Expert opinion
Our expert opinions provide you with objective and in-depth analysis. We also act as consultants to courts, authorities and banks, providing expert opinions on funding opportunities or specific risks associated with renewable energy.

Our financial advisory services provide personalised, in-depth assistance with project financing and refinancing, as well as corporate finance.

Financing and refinancing of projects
Our experts will help you to develop the right financing and risk structure for your project. We help structure and arrange equity and debt capital, organise investor and bank competitions and advise on negotiating financing terms.

Corporate financing
We offer comprehensive support in the planning and realisation of your corporate financing. Our advisory services range from the evaluation of various financing options and the structuring of equity and debt through to the optimisation of your capital structure. As with project finance, we will prepare a term sheet or information memorandum and organise the banking process for you.

Financial modelling and model review
We offer a robust, flexible and market-proven solar energy project finance model that follows international modelling standards and can be tailored to your needs. This ranges from a single-asset transaction model to a portfolio model and an operating model for wind farms under operation. We also regularly review financial models (model audit and model review) and provide training in financial modelling. Our models can be used to help you decide whether to finance a company, a project or a portfolio of projects.

Our tax experts specialised in renewable energy projects and transactions provide tailor-made solutions for all tax challenges, whether in the context of a transaction, financing, or structuring. From tax due diligence and tax support on the financial model and the development of tax-efficient financing and project structures, to advice on contractual negotiations and tax structuring with a view to a future transaction or post-acquisition, we can help you maximise tax opportunities and minimise risks.

Tax Due Diligence
Should you allow us to work for you on the sell-side, we will contribute to a smooth process with a customised tax vendor due diligence report or tax factbook. On the buy-side, we provide tax due diligence to ensure that all tax risks associated with the transaction are fully understood and appropriately managed.

Tax support in relation to the financial model
As part of the financial modelling process, we ensure that the financial model correctly reflects the tax structure and current taxation.

Developing tax-efficient financing and project structures
We help in creating tax-efficient financing and project structures. By closely collaborating across disciplines, we ensure a deep understanding of your commercial project goals. Drawing on this understanding, our tax experts, specialising in the renewable energy sector, offer well-planned tax strategies to improve the profitability of your projects.

Advice during for contract negotiations
During contract negotiations, we can help you to take all aspects of taxation into account. We will support you in drafting contracts to ensure tax efficiency and to minimise potential tax risks.

Tax structuring for transactions and post-acquisition
We assist you in the tax structuring of your project or company regarding a transaction or post-acquisition. We ensure that the transaction object is structured in a tax-optimised manner to make it attractive to potential buyers. We also ensure successful post-transaction tax integration.

Our legal advice provides comprehensive support to successfully manage and resolve legal aspects and issues at all stages of your project and business. From conducting a Legal Due Diligence and ensuring compliance in drafting project and financing agreements to providing expert guidance from our experienced attorneys during transaction negotiations.

Legal Due Diligence
Our legal experts conduct thorough legal due diligence reviews to provide you with a clear overview of legal risks and opportunities in the report format you require. We identify potential legal challenges to ensure that the negotiations and decisions made during the transaction process are well-founded.

Legally compliant drafting of project and financing contracts
Our lawyers develop tailored contract structures that not only protect your commercial and legal interests, but also ensure compliance and provide a solid foundation for the success of the project.

Legal advice and support during transaction negotiations
Our legal advice is provided by experienced lawyers who will advise you during the transaction negotiations. We ensure that legal aspects and challenges in the drafting of corporate acquisition contracts are optimally addressed, and legal issues are resolved. We assist with contract drafting and negotiation and protect your interests to ensure the smooth execution of a successful transaction.

*Services are provided by PwC Legal AG.

We understand your challenges and those of the market

Solar energy in Germany is already making a significant contribution to diversifying the energy mix, reducing greenhouse gas emissions, lowering electricity costs, and strengthening the resilience and independence of the energy supply. The Renewable Energy Act (EEG) plays a central role by providing financial incentives for solar power generation and promoting the integration of solar installations into the national electricity grid. 

One of the key challenges for the solar energy sector is the increasing simultaneity of electricity generation, particularly in regions experiencing rapid expansion and overloaded electricity grids. This is leading to a decline in market value of solar power and creating additional requirements for grid expansion and system integration. 

The development of efficient storage technologies and smart grid infrastructure is therefore essential to enable the necessary expansion of solar energy and balance fluctuations in the power grid. In this context, the optimal configuration of solar installations and battery energy storage systems (BESS) is growing increasingly important. Combining electricity generation, storage, and flexible grid feed-in allows such hybrid installations to align the supply of solar power more closely with demand. This in turn mitigates peak loads and facilitates the integration of renewable energy into the electricity system. 

Furthermore, the regulatory framework is constantly evolving. Changes to the Renewable Energy Act (EEG), new requirements for innovative plant designs such as agri-PV, and adjustments to the subsidy and tendering systems all influence the planning, financing and implementation of solar projects. It is therefore essential for project developers and investors to consider regulatory developments in their planning at an early stage to ensure the long-term viability of their projects. 

Infographic: Tender Results for Solar Photovoltaics in Germany (solar plants in “first segment”)
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Heiko Stohlmeyer

Heiko Stohlmeyer

Director, Renewable energies, PwC Germany

Tel: +49 171 3344297

Henrik Wrede

Henrik Wrede

Partner, PwC Germany

Tel: +49 170 9229464

Dr. Oliver Kunert

Dr. Oliver Kunert

Partner, PwC Legal

Tel: +49 179 1451162

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