Solar project investments provide predicable and steady returns, but require accurate modeling and industry knowledge to make sure all aspects of the investment are taken into consideration and fully understood prior to beginning the project. The development team at New Energy Equity has the professional experience and intimate industry knowledge to put together comprehensive business cases for each project and provide an investment prospectus based on a variety of factors that enter into the energy investment lifecycle. New Energy Equity provides our partners an investment package and forecast of the project’s return that is comprehensive, accurate, and easy to understand.
Renewable energy investors achieve their return on investment through a combination of project profitability and tax incentives. Our partners collect revenue from the Host energy user based on their commitment to purchase electricity from the solar installation for 20-25 years. This is a predictable revenue stream backed by an organization with excellent credit. The investor also receives the Investment Tax Credit (ITC) worth 30% of the value of their investment in the project and MACRS accelerated depreciation over the first 5 years of service. State-based incentives in the form of Performance Tax Credits (PTC) or Solar Renewable Energy Credits (SRECs) make up the final revenue streams.
When all financial benefits are added together for our investor and Project Company, our financial partners can expect a competitive return on their investment over the 20-25 year term of the investment.
Investor Benefits Investors gain valuable benefits from solar development projects:
- Competitive return
- Low and managed risk
- Limited operational involvement
- Recurring and predictable cash flows