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A Wise Investment

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Solar – The Smart Investment
For Your Future


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Investing in a Micro-Utility vs. Clean-Tech Startup

There are also several PPA characteristics that differentiate this investment type from other typical clean tech investments. For instance:

  1. PPAs are in an income generating asset, not in an operating company.

    Traditional stock investments hope for a blockbuster exits to provide investor a return. Micro-utilities generate their own cash flow, so investors know what their return is going to be from Day 1.

  2. PPA investments offer near term liquidity
  3. PPA investors have exit options through sale of project assets, recapitalization, or securitization of the micro-utility income streams.

A Wise Investment

  • Attractive internal rate of return
  • Reliable cash flows
  • Rapid repayment of capital from strong tax incentives
  • Stable asset valuations from ownership of durable assets
  • Inflation protection from escalating project revenues
  • Potential future revenue climate change programs
  • Competitive return rates for low to moderate investment risk

How PPAs Compare to Other Investment Opportunities

A Solar PPA investment functions like a fixed income investment but offers higher returns typically found in riskier equity investments. The opportunity is characterized as having:

Attractive Investment Returns:

A solar PPA offers very attractive, steady investment returns, especially compared to other conventional investments. Solar PPA returns are higher than yields offered by traditional fixed income investments:

PPA 20yr Muni Bond 20yr HY “Junk” Bond
8.00 – 12.00% 3.75 – 5.25% 6.01 – 8.20%

Low Risk Investment:

Solar PPAs investment offer significantly less risk compared to other investment options, making them perfect for the risk-adverse. Learn more about how Greenzu protects your investment.

Socially Responsible Investment:

Investing in a solar PPA demonstrates a commitment to social responsibility. Both consumers and the government are becoming acutely aware of the need to address climate change concerns. When you fund a solar micro-utility, you are directly fighting climate change by putting solar on another rooftop and helping one more building switch to clean energy.

National Security Benefits:

In addition to concerns about global warming, many Americans are looking to energy independence as a way of achieving greater national security. Many utilities run on foreign petrol-products. By helping American businesses switch to renewable energy, many will see your solar micro-utility as an investment in greater geopolitical stability.

Own Your Own Business:

A micro-utility investment partners you with a business owner. You own the solar on that business’ roof and the electricity that comes off the panels.


Current Window of Opportunity

Currently, a windfall opportunity is open to micro-utility investors because of the recent drop in solar installation costs coinciding with rising electricity prices. Solar micro-utility investors can capture the growing price differential.

Demand:

Electricity prices rise every year, but with strong trends in natural gas and oil cost increases, demand for renewable energy is rising significantly. Solar in particular has seen unprecedented interest in recent quarters.

Dropping Costs:

Solar has come of age. Photovoltaic panels now achieve bankable performance backed by strong warranties, and with streamlined installation techniques, solar systems are generally up and running with little hassle. The result is a much lower installed cost that gets close to grid parity.

Rooftop ROI:

The solar rooftop segment of the market is highly desirable for several important reasons. First, flat rooftops are the easiest and most affordable of all installations. They also come with streamlined transactions and a faster, pre-defined regulatory approval processes. When low costs, generous rebates, and high energy prices are combined, rooftop solar micro-utilities provide investor owners the highest ROI.

Government Incentive and Legislation:

Governments (federal and state) currently provide financial incentives for the installation of renewable energy systems. As a future upside, many states and municipalities are entertaining or have implemented legislation to limit carbon emissions that include paying renewable energy system owners a credit under a REC or cap & trade program.

The bottom line is that an investment in a solar micro-utility is an incredible opportunity with tremendous potential for future growth.