What Are Utility-Scale Solar Funds?

These projects, often called solar power plants or solar farms, rank among the largest producers of solar-based electricity. Significantly larger than residential or commercial setups, their capacity usually begins around one megawatt, with some installations running into hundreds of megawatts.

Instead of generating power for a single building, these installations connect to the main electrical grid and supply electricity to utility companies. Many employ advanced solar panel tracking systems to maintain optimal orientation throughout the day. Some also add onsite storage solutions to capture surplus energy for later use.

Financial Advantages of Solar Energy Investments

One compelling reason to consider these funds is stable returns. Long-term Power Purchase Agreements (PPAs) help solar farms lock in predetermined electricity rates over extended periods, often ranging from a decade to a quarter-century. This structured pricing model helps investors anticipate revenue more reliably.

Supportive legislation further increases the value of utility-scale solar. The Inflation Reduction Act (IRA) extended the Solar Investment Tax Credit (ITC) at 30% for projects that commence construction by the end of 2032. Moreover, investors can benefit indirectly from the IRA’s adjustments to the Production Tax Credit.

Returns on utility-scale solar projects often reach a 5-8% internal rate of return (IRR), influenced by market conditions and site-specific factors. This range might translate to $5–$8 million in revenue for every $100 million invested.

Is a Utility-Scale Solar Fund Right for You?

If your goal is a steady income over the long run, solar funds could be right for you. Many feature long-duration PPAs, which can provide predictable cash flows. Be aware, though, that returns may be more moderate than those offered by riskier investments. Balancing these returns against your personal timeline and desired outcome is essential.

Renewable energy tends to be viewed as more reliable than many other sectors, in part due to mature technologies and consistent government support. That said, there are risks. Policy shifts, unexpected technological leaps, or market changes might affect performance. Even construction delays can occur due to factors like supply chain disruptions. Weighing these uncertainties is vital before you start investing.

Investing in solar often contributes directly to cleaner energy systems. Compared to fossil fuels, large solar plants lower greenhouse gas emissions. If environmental considerations guide your decisions, an investment in utility-scale solar aligns with that.

Shasta Power’s Approach

Shasta Power focuses on acquiring and developing utility-grade solar facilities backed by private investment. It begins with identifying properties suitable for solar installations and examining factors like solar irradiance and grid access. After securing sites, Shasta Power handles permitting, engineering, and construction, always working to develop projects to high standards. Our track record is rooted in experience, strategic insight, and dedication to sustainable energy.

Shasta’s Summit Power Fund is 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.

Putting money into a utility-scale solar fund can provide an avenue to grow wealth while embracing a meaningful role in shaping a sustainable tomorrow. You can determine if this path fits your financial and personal values by evaluating the advantages and potential drawbacks.

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.