June 28, 2023
How to Invest in Utility Scale Solar Energy
Are you looking to grow your investment portfolio and leave the earth a better place? If you want to put your funds toward a sustainable future and make your money grow, utility-scale solar power is one of the best opportunities for accredited investors in 2023. Fossil fuels are fading The utilities benefitting you daily are […]
Are you looking to grow your investment portfolio and leave the earth a better place? If you want to put your funds toward a sustainable future and make your money grow, utility-scale solar power is one of the best opportunities for accredited investors in 2023.
Fossil fuels are fading
The utilities benefitting you daily are usually powered by energy inputs from fossil fuels such as coal, gas, and oil, as well as nuclear and renewable energy.
Unfortunately, the reality is that fossil fuels are simply becoming obsolete. Even though coal has been the leading source of energy globally for an entire century, most of us know that its use has been devastating our health and environment.
Therefore, fossil fuels like coal are being retired, driven by increased environmental awareness and political momentum. Renewable energy, like solar, is rising to replace it.
Renewable resources are the future
The demand for energy is always growing. The good news is that as coal and other fossil fuels fade, renewable resources are quickly developing. Solar is one of the main renewable energy sources leading a world-wide transformation from dirty to sustainable energy.
The U.S. Energy Information Administration predicts that solar will see the most growth in the coming decades. Solar accounted for an incredible 45% of all new electricity-generating capacity in 2022; enough to power 24 million American homes. It truly is the energy of the future.
What does all of this mean? As the demand rises for renewable resources, your investment in solar today is the opportunity of a lifetime.
Utility-scale solar investment opportunities
If you’re looking to invest in solar, you might be wondering what your best investment opportunities are. Or, how can you invest in solar on a utility-scale?
You see, a utility-scale solar farm is a large power generation facility that provides our electricity grids with renewable energy. The construction of these large plants is expensive, and requires financing from institutional investors.
The solar farm requires a project sponsor to manage land acquisition and contracts, and then investors like you to provide capital in exchange for income once the project sells.
There are many ways to invest in this system of renewable energy. Let’s talk about a few of them.
1. Invest in a utility-scale solar development fund
A utility-scale solar fund is a direct, focused way to invest in solar energy. The fund provides money to develop a solar power generation facility that provides energy directly to the electric grid.
Because the power plants are expensive to develop, financing is one of the most crucial pieces of the project. It is an excellent opportunity for private investors to get involved in the early stages of development. In fact, investors can earn a return long before the solar plant even starts generating power.
Shasta Power exists to help connect accredited investors directly with utility-scale solar development investment opportunities through the Summit Power Fund. This utility-scale solar fund, developed and managed by Shasta Power, provides a target 30% return. In addition, it is actively eliminating coal and its negative effects, and powering the world with clean, renewable energy.
If you want to invest in a utility-scale solar development fund, investing with Shasta Power is a unique option.
2. Buy stock in publicly traded solar companies
Stocks are a great way to invest in solar, although they can feel distant and generic. Some fund the manufacturing of thin-film solar panels and power optimizers for solar panels. Others fund the operation of solar energy-generating facilities such as Daquoa New Energy and JinkoSolar.
If you are interested in buying stock in publicly traded solar companies, you can check out Motley Fool’s list of some of the best solar stocks to invest in 2023. Depending on your investing goals, you may want to invest in solar stocks because you’ll have more flexibility and liquidity.
3. Lease land to a solar development company
The third way you can invest in solar is to lease your land to a solar development company. Utility scale solar projects need large tracts of land–hundreds or thousands of acres–in order to generate enough electricity to interest utility companies.
To invest in this way, you can buy land or lease your land to a utility-scale solar developer to earn actual revenue and impact the world. It is extremely challenging to identify the exact land that solar developers need, so it is best to work directly alongside developers in choosing land, rather than making a guess at what they may want.
Warm regions like California, Arizona, Nevada, and other such areas that see a lot of sunshine are understandably the most common for solar plants. Other regions are also growing. Investing in land that will be used for a solar plant means owning land for decades under a ground lease to a power producer, and receiving a profit through lease payments.
The ROI will range from low to mid-teens but are very sure once the solar farm is fully constructed—nearly guaranteeing a consistent, long-term income. Land investing is attainable for the average investor who is already accredited, but prior expertise in land development is recommended.
Invest directly in solar through Shasta Power
Are you interested in investing directly in solar? Watch this free webinar from Max and John, the founders of Shasta Power, to learn about renewable energy and why it is such a powerful place to put your investment funds.