Need Funding? Stage Is Set For Renewable and Solar Energy Projects
Dear Friends & Neighbors,
(Please click on red links & note magenta)
The stage is set. The time is ripe. With the cost of both solar and wind having dropped tremendously in the past three years, solar technology having enabled greater efficiency, the incoming Tesla’s Powerwall, Powerpack solving the storage problem, and Tesla’s integrated and cost effective solar roof… the inevitable Solar-Renewable Tsunami is knocking on our door. Astute green investors and lenders could all hear the knock and are ready to finance solar energy projects and fund power developments of renewable-sustainable energy resources. In the U.S., a mix of federal production tax credits and individual state renewable portfolio standards (RPS) are definitely pushing the market. To better understand various policies and incentives for renewables and efficiency by states, please click HERE. For example, state of CA has 187 such policies and incentives whereas state of FL has 77. Of course the incentives of some of the E.U. nations are also fueling the market. But most importantly, it is the simple fact that the cost of solar have dropped so much that it is now a more secure investment than putting one’s money in the bank (bank has a rate of return of about 0.8%-1.1% without inflation protection whereas investing in solar provides a rate of return ranging from about 3% (in AK without any tax credit or incentive, it is 4.4% with tax credit and incentives) to 24.4% (in HI with tax credit and incentives, location-climate-incentive dependent, and this is with inflation protection).
For a simple Solar Investment Payback Formula:
- Total System Cost/Value of Electricity Generated/Your Annual Electricity Usage = Payback Time
- 1/Payback Time = Rate of Return on Investment
- a 6 kW grid-tied system that costs about $10,000 (subject to market fluctuation, excluding fees and incentives)
- The average American household uses 10,932 kWh of electricity per year (source: EIA)
- They pay an average of $0.12 per kWh for it
Therefore, using American national averages: $10,000 system price/$0.12 per kWh/10932 kWh per year = 7.62 years = Payback Time
Therefore, 1/Payback Time = 1/7.62 =0.13 1 or 13.1% = Rate of Return on Solar Investment, keep in mind that this is with inflation protection (utility bills are always going up).
At this point, I’d like to share with you all a site that had already done the work for you, state by state, Solar Power Rocks., in figuring out the Investment Return (IRR), with consideration of respective state’s tax credits and incentives.
As a result, there are much opportunities for high yielding rates of return on investment in solar as well as other green renewable sources. In the coming decades, there will be so much transformational developments waiting to be planned out and completed. If you have a project ($multi-million project) in mind, with a plan but insufficient funding, please contact me via: [email protected] so Windermere Sun may be able to introduce you and your plan/project to potential investors/lenders.
Investment Criteria for Joint Venture Financing: financing for all types of commercial real estate and alternative energy projects. In general, they must meet the following criteria: • The project 5% down or more; • The project must be shovel-ready–defined as ready to break ground in 90 days or less; • The project must be sponsored by an experienced developer with a significant financial stake. • Asset-based loans, including In-Ground Assets; • Corporate expansion loans; • International Funding; and • Hard money loans. Joint Venture Financing Project Types: (NEW DEVELOPMENT ONLY) • Hotel Resorts and Casinos • Assisted Living/Senior Housing • Apartment Buildings/Multifamily Housing • Alternative/Renewable Energy (i.e., solar, wind, hydro, geothermal, etc.) • Green Energy (i.e., biofuel/biodiesel, biomass, waste-to-energy, etc.) • Hospitals and Health Care Facilities • Infrastructure (roads, highways, rail, etc.) • College and University Buildings • Public-Use and Recreational Facilities • Industrial Projects • Other Related Types Locations: USA and International, Joint Venture Financing Terms: • 95% equity financing • Typically three to five year term • Non-recourse financing • No interest payments during term of investment • Minority equity stake in lieu of interest • Take out with permanent financing or sale Time to Closing: 90 to 120 days.
May we all have many many bright and sunny days.
~Let’s Help One Another~
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