Make a meaningful Impact

Investing in solar energy is not merely a financial choice; it’s a commitment to shaping a sustainable future. These investments offer lucrative returns while making a profound environmental impact.

Recent forecasts highlight a substantial increase in global solar installations, driven by technological advancements, enhanced regulations, and attractive government incentives. The potential for solar energy in Europe and beyond is vast, presenting a compelling opportunity for family offices seeking robust financial returns coupled with significant environmental benefits.

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Why invest in solar parks from a family-office perspective?

By investing in solar parks, family offices can achieve a combination of financial returns, risk management, and alignment with broader social and environmental goals.

Stable and Predictable Returns

Solar parks typically generate stable and predictable cash flows due to long-term power purchase agreements (PPAs) and government incentives. This predictability is attractive for family offices seeking steady income streams. At the same time, variable spot market sales give room for higher profits.

Energy Independence and Security

Investing in solar energy can contribute to energy independence and security, reducing reliance on fossil fuels and mitigating exposure to volatile energy markets. If your company or investment is a heavy user of electric power, solar parks can be a very interesting investment.

Environmental and Social Impact

Investing in renewable energy aligns with the growing emphasis on environmental, social, and governance (ESG) criteria. For family offices, they offer an increasing focus on impact investing to contribute positively to society and the environment.

Government Incentives

Many governments offer incentives for renewable energy projects, such as tax credits, grants, and subsidies. These incentives can enhance the financial returns of solar investments. They vary from country to country and need to be looked at in detail.

Technological Advancements

Continuous advancements in solar technology are reducing costs and increasing efficiency. This trend makes solar parks increasingly profitable and sustainable in the long term.

Diversification

Solar investments offer diversification benefits. They are relatively uncorrelated with traditional asset classes like real estate, equities and bonds, reducing overall portfolio risk.

Scalability and Long-term Growth

The renewable energy sector, including solar parks, is poised for significant growth as the world transitions to cleaner energy sources. This long-term growth potential is attractive for family offices looking to invest in sectors with future upside. Furthermore, new parks are rare and permissions given scarce, increasing future prices.

Inflation Hedge

Solar parks can act as a hedge against inflation. The revenues generated from selling electricity often increase with inflation, protecting the real value of the investment.

Legacy and Intergenerational Wealth Transfer

Family offices often have a long-term investment horizon and focus on legacy and wealth preservation for future generations. Solar investments can provide enduring value and align with the family’s values and vision.

Time and effort

Investing in turn key solar parks prove far less work and stress than other time consuming assets like real estate

What we offer

1. Families and family offices in our community find parks in Europe they can buy. The primary countries of origin are Germany, Spain, Poland, and France.

2. Families and family offices interested in the whole investment circle can join developers or club deals we orchestrate, and invest. We have an ongoing high-quality deal flow.

3. Furthermore, sellers or developers of turnkey solar parks and projects can get in touch with us and win our community of family offices as final buyers or project partners.

4. Families and family offices can seek exchange, know-how, and access to information in our community to get a second opinion or advice on investments, partners, or procedures.

5. Additionally, we help and open our networks of financing banks, operational companies, hardware producers and much more.

How you can invest

Family offices can invest in solar parks through two primary avenues:

Project Development:

• Involvement: Investing in the development phase involves participating from the ground up, including site selection, permitting, construction, and grid connection. Investments can be set up alone, with a developer, or in a club deal from our community.

• Risk and Return: This approach carries higher risks due to potential regulatory, construction, and operational challenges. However, it offers higher returns if successful, as investors benefit from the entire project’s value creation.

• Process: This includes feasibility studies, securing financing, and navigating regulatory approvals before construction and operation.

• Time: The whole process takes on average 2 to 5 years.

Turnkey Parks:

• Involvement: Investing in pre-built, operational solar parks with established infrastructure and often a Power Purchase Agreement (PPA*) already in place or with access to spot market sales**.

• Risk and Return: This method reduces risks associated with development and construction. Returns are more predictable due to guaranteed revenue from PPAs or variable spot market sales.

*PPA: A long-term agreement to sell the generated electricity at a fixed price, providing stable and predictable income.

**Spot Market Sale: Selling electricity at market prices, fluctuating based on demand and supply dynamics, potentially offering higher but less predictable returns.

Balancing pricing, yields and sun hours

The revenue potential of a solar park is influenced by:

Total Sun Hours: The number of sunlight hours directly affects energy production. Locations with higher sun hours generate more electricity, increasing potential income. The total sun hours vary from country and regions.
Pricing Mechanism:
1. PPA Prices: Fixed rates agreed upon in the PPA, providing certainty and stability in revenue.
2. Spot Market Prices: Variable rates based on real-time market conditions, which can be higher during peak demand periods but are less predictable.

The returns on investments in solar parks can vary depending on location, project size, financing structure, and specific market conditions. However, typical returns are generally in the following ranges:

Equity Internal Rate of Return (Equity IRR): This can range from 5% to 10%. In some cases, especially with well-planned and optimized projects, returns can exceed this range.
Project Internal Rate of Return (Project IRR): Returns here often range from 6% to 12%, depending on the risk and market conditions.

Other considerations

These figures are general benchmarks, and individual projects can vary. Factors such as local incentive programs, power purchase agreements (PPAs), tax advantages, and operational efficiency play a significant role in determining the actual returns. The combination of high sun hours and favourable pricing mechanisms enhances the overall financial viability and attractiveness of the investment.

Financing options and potential loan-to-value ratios. It is important to identify which banks can provide financing, whether through international institutions in the country where your park is located or through your local banks, such as those in Germany.
Ongoing operations and management costs (O&M). We offer comprehensive support through our community, assisting you with O&M and other relevant aspects to ensure the success of your investment.

Investing in Solar Energy