Renewable Energy Fintech Obtains CNBV’s Operation Permit
The crowdfunding platform RedGirasol became the first clean energy-focused fintech to be authorized by the National Banking and Securities Commission (CNBV) to operate as a Collective Financing Institution (IFC).
RedGirasol, a Mexican startup based in Monterrey, Nuevo Leon, provides crowdfunding to facilitate the development of distributed generation (DG) projects. Its platform connects solar panel installers with users interested in obtaining cheaply-sourced renewable energy and provides crowdfunding for these projects.
Using the RedGirasol platform, investors benefit from returns on their loans and applicants acquire sustainable energy systems. Meanwhile, installers increase their sales by offering credit to their customers. All this contributes to reducing harmful carbon emissions. Furthermore, the process democratizes people's access to clean energy. The newly acquired CNBV certification allows RedGirasol to provide greater certainty to clients in the sector, too.
The financial operations will be under review by the Bank of Mexico, the CNBV, and the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF). The reviews are geared prevent money laundering and provide greater certainty to investors.
As of April, 2022 RedGirasol has accumulated funding of MX$135.6 million (US$6.7 million), which enabled the development of more than 700 seed projects that together avoid the emission of more than 80,000 tons of carbon dioxide during their useful life. The company's average annual yield is an estimated 16 percent for investors, with an overdue portfolio rate of 2.58 percent since Dec. 2020.
In 2022, Red Girasol partnered with the Puebla-based energy efficiency and solar generation company ErgoSolar and the international company Gear Power to create Energía con Causa. This association seeks to finance the installation of distributed generation solar systems for schools, orphanages and nursing homes in Mexico, contributing to the reduction of electricity costs and the creation of a cleaner environment in vulnerable communities.