In this post, we’ll look at why foreign energy dependence is risky and how solar energy lowers those risks. We’ll also discuss how investing in solar farms can create financial returns and positively impact the world.

Understanding Foreign Energy Dependence

Many economies rely on imported fuel for a large share of their energy demands. In 2022, for instance, the U.S. was a net crude importer, importing approximately 6.28 million barrels a day. Other nations like Japan, South Korea, and many European states also bring in most of their crude oil from abroad. This reliance creates challenges with producers changing outputs or when shipping routes are blocked.

Risks of Dependency

Foreign fuel dependency creates a vulnerable point in supply chains. Military conflicts in producing regions can curb exports. Sanctions can also limit oil and gas flows. Sudden disruptions in supply drive up costs for businesses that depend on petroleum products and for households trying to manage budgets. Trade disputes only compound this effect when new tariffs or shipping restrictions influence the flow of oil and gas across borders.

A prime example of this is the recent Russia-Ukraine conflict. In protest of Russia’s invasion of Ukraine, the European Union policy-makers stopped importing Russia’s natural gas. In return, Russia turned off the Nord Stream pipeline that supplied gas to Europe, leading to natural gas shortages. Russia’s natural gas withdrawal brought chaos to energy markets. As a result, Germany’s economy, which relied on natural gas for manufacturing, went from one of the top-performing to one of the worst-performing major economies among developed nations.

Utility-Scale Solar Power as a Path to Self-Reliance

Solar power is on the rise, which is good news for energy independence. In the second quarter of 2024, the U.S. solar market installed 9.4 gigawatts of capacity, representing a record for the industry. Solar also accounted for 67% of all new electricity-generating capacity added to the U.S. grid in the first half of 2024.

Over the last decade, the cost of installing solar has also dropped by nearly 40%. This has led the industry to expand into new markets and deploy thousands of new systems nationwide. Currently, the price for utility-scale solar power ranges from $16 per megawatt hour (MW/h) to $35 per MWh, making it competitive with all other forms of energy generation.

The ability to produce energy close to home helps keep revenues close to home. In many places, solar projects have created new jobs and reduced exposure to price spikes. When power is generated locally, electricity can remain steady even when external supply chains fluctuate. Over time, this stability drives economic growth.

Shasta Power’s Utility-Scale Solar Farms

Shasta Power specializes in acquiring and developing utility-scale solar farms, primarily funded through private investments. Our approach begins with identifying suitable land for solar projects, which involves rigorous due diligence to assess site suitability based on factors like solar irradiance, grid connectivity, and environmental impact. We then acquire or lease this land and manage the permitting, engineering, and construction processes to ensure that the solar farms are developed to the highest standards. 

Shasta Power distinguishes itself through a combination of experience, strategic foresight, and a deep commitment to sustainability. With a track record of successfully executing utility-scale solar projects, Shasta Power ensures each development is optimized for environmental impact and financial return (due to the sensitive nature of the transactions, substantiation of our track record claims is available upon request after executing a non-disclosure agreement). We leverage private investment to fund these projects, creating opportunities for investors to participate in the clean energy transition while achieving competitive returns.

Real-World Impact and Returns

Beyond energy independence, solar power helps reduce our carbon footprint. 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. Large-scale installations can also promote sustainable land use. Pollinator-friendly solar farms integrate native plants and wildflowers around solar panels, creating habitats for bees and other pollinators. Solar farms can also promote dual land use through agrivoltaics, optimizing the land for energy production and agriculture.

Investing in Utility-Scale Solar

Decreasing costs paired with increasing demand means utility-scale solar farms are more profitable than ever. In fact, the average rate of return on a utility-scale solar farm is between 5% and 8%, depending on project specifics and market conditions. This can equal $5 to $8 million in revenue on a $100 million project.

Shasta’ Power’s solar funds are designed to target more than 20% IRR over its lifetime. Investing involves a straightforward process. Simply contact us to create an account, verify your investor qualifications, sign the subscription agreement, and wire the funds. Our new SPF II fund is expected to open in early 2025.

Foreign energy dependence can limit a country’s resilience. By investing in solar farms, you help strengthen local infrastructure and build a more stable energy future. You also get to take advantage of attractive financial returns. The steady shift toward renewable energy is already underway. You can be a part of that transition with a smart, purposeful investment.

If you are ready to take the next step, contact us for more information. Our team can guide you through the investment process and help you understand how utility-scale solar can be part of your financial journey and environmental commitment.