December 15, 2023
Utility-Scale vs Community Solar Investments: Which to Invest In?
How do you compare utility-scale vs community solar investments? Which will benefit the environment and your financial future the most? Solar energy, whether on a utility scale or community scale, is a sustainable AND profitable investment option for you as an accredited investor. Both investments will help you reach your goals of being financially stable […]
How do you compare utility-scale vs community solar investments? Which will benefit the environment and your financial future the most?
Solar energy, whether on a utility scale or community scale, is a sustainable AND profitable investment option for you as an accredited investor. Both investments will help you reach your goals of being financially stable while contributing to a healthier environment. In this blog post, we explain the differences and similarities between utility-scale and community-scale solar and encourage you to consider putting your investment funds toward utility-scale solar.
Understanding Solar Farm Investments
Utility-Scale Solar Farms
The world of energy has shifted significantly in the past several years. Consumers and investors alike have realized that energy sources such as coal harm the environment and are leaning more toward renewable energy instead. Because of this shift, utility-scale solar farms have developed.
These farms are large-scale solar power stations. Traditional utilities buy energy from utility-scale solar farms and bring energy to large cities and regions.
Community Solar Farms
Solar farms, on a community-scale, are more comparable to community gardens. Multiple individuals pool their funds to invest in solar equipment and then share the benefits of the resulting solar energy.
To invest in solar energy on a community scale, you must buy into the community’s solar “garden” or invest in a company that develops community solar farms.
Utility-Scale vs Community Solar Investments
How much can I invest?
Community solar farm investments do not require as large an investment as utility-scale farms. They are more accessible to individuals who want to invest in solar. For community-scale solar, you may need to invest around $2,000, and for utility-scale solar, you would need to invest around $50,000.
How much control do I have over my investment?
Utility-scale solar investments are the ideal combination of direct impact on the planet with only partial involvement from you as the investor. You can be much more involved in utility-scale solar investments than if you opted to invest in something like solar stocks, but you would not have to deal with the day-to-day details.
If you invest through Shasta Power, we will provide regular updates and bi-annual webinars to keep you in the loop on the investment progress and impact.
Community solar projects sometimes require much more active participation. As an investor, you may need to weigh in on small project decisions, just like in an HOA or community garden.
What are the returns?
Community solar projects can bring in a moderate percentage return, but they usually also bring in a lower dollar amount since they are only localized and impact a small area. Many times, community solar project is not even intended to produce an ROI, and rather aims to generate local power directly for the investors (community members.)
Utility-scale projects, on the other hand, can bring in high returns over a short-term basis. The percentage of return is targeting maximizing value to early investors, and the dollar amounts are high because of the size of the project and long-term contracts with utility companies.
What to Look For in Utility-Scale vs Community Solar Investments
If you invest in utility-scale or community solar projects, make sure you look for simplicity and transparency above all. We have clear process and communication at Shasta Power because we believe investments should not be confusing or secretive.
Make sure that you can positively impact both your financial future and the future of the environment, no matter which investment you choose.
Register for the 3 Reasons to Invest In Utility-Grade Solar Webinar
If you’re ready to learn more about utility-scale solar and why it is such a powerful investment option, we invite you to register for our webinar, 3 Reasons to Invest in Solar. You’ll learn about the impact of solar on your community and the environment, as well as the significant financial benefits. Our experts at Shasta Power will answer your questions and provide big-picture insights. Click here to save your spot and learn about solar investments.