Green Investments
In recent years there has been a major change in the way renewable energies have been approached by investors. Investments in green energy opportunities have become increasingly popular with growing awareness both in the need to combat climate change and with changing government legislation which has made green investments an attractive prospect for investors.
The non-sustainability of fossil fuels has always posed the problem of what to do once traditional energy sources are expended. This in turn has created the drive to find alternative sources in the form of renewable energy and in particular, solar or photovoltaic (PV) technology.
Until recently, the development, manufacture and installation of solar products has not been viable in the sense that the costs involved have always outweighed the benefits of the clean energy produced. However, the changes in legislation which have passed in recent months have dramatically changed prospects for investors by creating a situation where investment in the solar industry is now an attractive, viable alternative to other investment opportunities.
Investors are using legislation such as the Clean Energy Cash Back System (a type of feed-in tariff) to build a green energy portfolio which will be able to offer high yields on investments in the long term. Because of the obvious benefits to the environment in investing in PV technology, there are the added benefits of good PR through the ever more important Corporate Social Responsibility (CSR) to investors with a strong media support for companies and individuals who seek to broaden their investment portfolios in green energy.
The UK PV industry is now in a strong position and following the announcement of the Clean Energy Cash Back feed-in tariff system is set to boom. MP’s and members of the solar industry alike are keen to make the UK sector competitive with similar sectors in countries such as the United States, India and China. The broad nature of the PV industry from research, manufacture and installation of various products offers a range of investment opportunities throughout the industry.
Germany provides a stark, recent example of how a feed-in tariff system can spark investment opportunities in the solar industry. With the tariff offering guaranteed returns on investments protected by legislation, banks have been prepared to leverage up to 90% of the capital because of the absolute security of high yields on a long term basis. Similarly, the knock-on effect of solar installation take up is a boost to the manufacture of essential PV products such as silicon which can provide investors with an opportunity to get involved in the actual production of solar panels offering high yields as many new buildings install solar products as standard as a means of off setting carbon emissions.
Household Investment
Homeowners are beginning to see the obvious advantages in investing in solar panels for their property. The initial cost of installing PV systems can now be off set due to the introduction of tariff legislation which offers homeowners cash back for excess energy which is fed back into the national grid.
In some instances governments offer incentives in the form of grants and loans in order to spur solar panel uptake. Tax rebates and the fact that green investments are tax free means that in effect, the government pays towards the household electricity bill while the homeowner reaps the yields of the investment in the long term.
With the announcement of the Department of Energy and Climate Change (DECC), Clean Energy Cash Back initiative, homeowners will be seeking to cash in on the benefits both in terms to the environment and to the reduction in household bills.
Large Scale Investment
It is now possible to invest in larger solar schemes, specifically designed, with the help of the feed-in tariff to maximize yields over a period guaranteed by the government legislation. A number of companies now operating in the UK are able to offer comprehensive turn-key solutions whereby the job of sourcing the PV equipment i.e. solar panels, arranging locations and administering the cash yields from the investment are carried out by a dedicated agent in the field of solar power.
Since the announcement of the imminent introduction of the Clean Energy Cash back system, to come into effect next year, the potential for success in the field of solar investment has risen dramatically with investors from around the world sensing the potential of the UK solar industry. This has created a buzz of excitement around the solar investment sector with investors typically being required to put down just 10% of the cost of the entire solar installation, an initial capital outlay saving meaning that loans can be easily acquired from the bank at a time when loans are not necessarily easy to come by. One such investment opportunity is the solar investment bond, for more information on this visit:
http://solarfeedintariff.co.uk/solar-investments/solar-investment-bond/
