Investors

In order to build solar energy systems, our team works closely with private and institutional investors, tax equity investors, and banks who demand a decent investment return but are also interested in creating positive impact through their investments. Solar projects create consistent cash flow for investors via a diverse portfolio of low-risk, asset-backed investments with a positive environmental impact.

Solaris Energy has been in this business since its infancy and our team has a proven track record of success. In collaboration with our non-profit partner, The Atmosphere Conservancy, we have been building solar projects for the last 10 years. Our deeply experienced team has been working in this industry and actively shaping it by serving as  board members for industry organizations for over 25 years.

 

How We Work

Solaris focuses on a section of the market which we see as currently underserved – the small to mid scale commercial market – with an added focus on schools, non-profits, and municipalities. While no project is too large for us to tackle, we also finance systems that most other developers find too small or too complicated to take on. These projects tend to see the same average investment returns as larger projects but do not have the same market competition. Our goal is to open this large and growing share of the solar market to the same financial vehicles available to larger commercial and utility projects. We also pride ourselves on developing solar projects with a personal, hands-on approach that minimizes hassle for all parties.

Our custom in-house financing includes a mix of debt and equity investment which is unique for each solar project. Investors typically fall into three groups: tax investors, equity investors and debt providers. Tax investors take advantage of federal tax credits and depreciation that lower their tax burden and they can be invested in a project for as little as six years.  Equity investors are typically in for the long-term and derive their returns from the consistent cash flow generated from the sale of electricity and renewable energy credits created by the system. Debt providers benefit from a fixed interest rate on the funds they provide. Typically, each solar project built requires the client (the energy buyer) to sign a Power Purchase Agreement which specifies the rate per kilowatt hour produced by the system that the client will pay every month for a term of 20-30 years. This creates a guaranteed and consistent cash flow from the project to pay back loans and investors.

A majority of our current investors are long-term equity investors who are also able to take advantage of federal tax credits that increase the value of their investment. Since each solar project is a separate legal entity, investors can capitalize just one project or an entire portfolio if desired. Depending on the type of investment, investors can invest for a medium to long term. Tax equity investors hold their investment for at least six years after which they can sell their interest and exit while equity investors tend to invest for 20 years or more in order to take advantage of the consistent cash flow returns.

 

Why Invest with Solaris Energy?

Solar projects provide an opportunity for investors to gain consistent, stable and predictable returns that are not affected by stock market fluctuation, economic indicators or variable real estate values. Many investors are taking advantage of these benefits that solar investments provides:

  • Stable Investment Returns

    Consistent and predictable energy payments, tax credits and a guaranteed fuel supply (the sun) make solar energy a sound investment for lenders and investors alike. Unlevered investment returns between 8 -12% are the industry norm, though results may vary depending on the project and the market it is in.

  • Diverse Portfolio

    Solar Energy provides a unique investment opportunity which can add stability, tax incentives, and market diversity to a portfolio. Projects provide passive cash flows to equity owners, stable payments to lenders, and significant tax advantages to the right investor. The solar market will only continue to grow, experts estimate a CAGR of over 6% for the next 6 years.

  • Low Risk

    The perceived risks once associated with solar have all but vanished through technological innovation and increased adoption, leading to market efficiency and industry maturity. Because a solar project is an asset-backed investment that includes a long-term energy payment contract, investment returns are far less risky than many other similar investments.

  • Environmental Stewardship

    Choosing solar positions investors, lenders, and other finance partners as environmental stewards and helps to achieve sustainability goals. Our partnership with The Atmosphere Conservancy means that we give special attention to projects that have a positive social impact by supporting non-profits in local communities. By investing in solar, investment dollars improve the triple bottom line of profits, people, and the planet.

* Legal Disclaimer: Equity investments available to Accredited Investors only. Investment returns are not guaranteed. Consult your financial advisor for information specific to your situation.

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