What makes solar investing attractive?

The renewables market is expanding with technological advances and growth opportunities, making it an attractive option for investors and energy customers around the world. Solar investing is slowly becoming a sought after option for portfolio investors because of the following reasons -

●     Rapid technological advancements have improved the efficiency and performance of solar plants

●      Refined deployment has significantly reduced the cost of deploying solar for energy customers in the emerging markets. The cost is expected to reduce further in the near future

●      Governments are introducing energy policies that are favorable for the renewable energy market to broaden their energy mix and explore renewable energy generating sources that are planet friendly

●   Renewable energy, including solar is important in tackling the rising electricity tariff rates because of the excessive dependence on fossil fuels. Opting solar power will make great economic sense to customers operating in the energy intensive markets.

 

Most state governments in India offer tax subsidies or grants to encourage widespread solar power adoption for energy customers. This makes the cost of commissioning the plants palatable for energy customers. With tax credits given for solar power generation, annual tax bills for businesses opting for solar will reduce. Certain states have passed net metering laws, which is a billing method that credits solar customers against their electricity consumption, lowering their monthly bills.

As an investor looking to diversify his investments in clean technologies such as solar, this is an ideal opportunity to enter the fray. As solar deployment costs continue to decline and utility grid tariffs continue to increase, energy intensive consumers are looking for means to bring down their electricity bills, making solar investing a palatable option for investors.

One way is to sign a solar Power Purchase Agreement with solar developers like Distributed Energy. We will screen projects and deploy investor capital to commission rooftop/ground-mount solar projects and offer the energy customer a discounted tariff rate vs what they were paying to the grid. Dividends are passed onto the respective investors based on payments made by energy customers on generation. Solar investing through experienced energy aggregators offer dependable cash flows and are an annuity-style investment.