Climate change stands as one of the most urgent challenges of our time, and shifting to renewable energy is a vital part of the solution. Solar energy offers individuals a chance not only to grow their wealth but also to join the movement for a sustainable future. Shasta Power understands that creating real change demands more than financial investment—it calls for a community of committed individuals, regardless of their investment status.

The Current State of Impact Investing

Impact investing aims to generate measurable social or environmental impact alongside financial returns. This strategy often achieves equal or better results compared to traditional investments. In 2023, sustainable funds outperformed their traditional peers, posting a median return of 12.6% versus 8.6% for conventional funds. It is important to note, though, that overperformance in one year does not necessarily mean this is a trend.

Investors are increasingly focusing on initiatives that address climate change and promote sustainability. Over 50% of individual investors plan to increase their allocations to sustainable energy investments.

Barriers to Entry for Non-Accredited Impact Investors

Most traditional investment funds limit participation to accredited investors. These are typically high-net-worth individuals with a net worth exceeding $1 million (excluding primary residence) or those with an annual income of at least $200,000 for individuals or $300,000 for couples. This restriction leaves a large portion of the population unable to access these opportunities.

The main reasons for these limitations include risk mitigation and regulatory compliance. Investments in private equity, venture capital, and impact ventures often involve considerable risk. However, these regulations effectively create a barrier for non-accredited investors, excluding many from impact investment opportunities. Only 18% of U.S. households meet the requirements, meaning 82% are locked out of funds that promise high financial and social returns.

By reserving these opportunities for a select group, traditional funds exclude a majority of individuals who may be interested in both financial returns and making a positive impact through their investments.

Why Shasta Power Welcomes Non-Accredited Investors

Shasta Power distinguishes itself by welcoming non-accredited investors, demonstrating a commitment to democratizing impact investing. This inclusive approach allows more people to participate in the shift toward renewable energy, aiding the global fight against climate change.

Shasta Power invites individuals eager to make a difference by opening investment opportunities to non-accredited investors who may not meet the typical wealth or income requirements. This strategy expands our investor community, diversifies funding sources, and enhances our ability to raise capital for solar development. With more contributors, we can finance additional solar farms and speed up the transition to renewable energy.

This approach helps build a community of investors focused on returns and making a tangible environmental impact.

How Non-Accredited Investors Can Make a Difference

Utility-scale solar farms play a vital role in the transition to renewable energy. By investing in these projects, non-accredited investors help develop solar infrastructure, providing clean energy to thousands of homes and businesses. This reduces dependency on fossil fuels and cuts greenhouse gas emissions. According to the International Renewable Energy Agency (IRENA), solar energy could reduce global carbon emissions by up to 70% by 2050.

Financial Benefits of Solar Investments

Decreasing costs paired with increasing demand make utility-scale solar farms more profitable than ever. Power Purchase Agreements (PPAs) help generate stable income for utility-scale solar farms, allowing producers to sell electricity at a predetermined price for a set period, typically ranging from 10 to 25 years.

Favorable legislation also boosts the appeal of solar investments. The Inflation Reduction Act (IRA) extends the Solar Investment Tax Credit at 30% for projects that start construction by the end of 2032. The Production Tax Credit (PTC) under the IRA provides a base rate of $0.0275 per kilowatt hour (kWh) for electricity produced from qualified solar facilities.

The average internal rate of return (IRR) on a utility-scale solar farm ranges from 5-8%, depending on project specifics and market conditions. This can equate to $5-$8 million in annual revenue on a $100 million project. Shasta’s Summit Power Fund typically targets an IRR greater than 20%. We achieve this high IRR by maximizing development stage value, through partnerships with Independent Power Producers (IPP) for construction and operation. These IPPs seek shovel ready projects, and benefit from fully acquiring the assets once they are built. In the partnership process, they pay a premium for us developing and de-risking the project. We also make it easy for you to invest. Contact us to create an account, verify your eligibility, sign the subscription agreement, and then wire your investment.

Environmental and Social Benefits of Utility-Scale Solar

Replacing fossil-fuel energy generation with utility-scale solar installations can save approximately 385,000 to 436,000 pounds of CO₂ per acre per year. During the construction phase, a single large solar farm can also create hundreds of jobs over several months or even years. Local communities often see increased spending by workers involved in the construction and maintenance of utility-scale solar farms. These projects can provide local governments with higher tax revenue from property, sales, and income taxes.

Shasta Power’s decision to welcome non-accredited investors isn’t just about opening new avenues for financial gain. It’s about fostering a community of passionate individuals who want to be part of the renewable energy revolution. While other funds may restrict access, Shasta Power believes anyone who cares about the planet should have the opportunity to make their money work for good. Whether you’re new to impact investing or a seasoned investor, Shasta Power provides a unique chance to potentially grow your wealth and be part of something bigger.

At Shasta Power, we help investors make a positive environmental and social impact. Visit our investment information page to learn more about our solar investment opportunities.