As awareness of solar investments and the risk profile they offer increase, finance in the sector is gradually “coming of age” and attracting institutional investors, according to Solar Media’s Solar PV Finance: 2014 Update.
Jamie Richards, a partner at investment manager Foresight, which launched the Foresight Solar Fund Limited on the London Stock Exchange for £150 million in October 2013, said, “We are seeing increasing institutional appetites for solar investment as institutions are made aware of the low volatility and index linked yields that can be achieved.
“The fact that we were able to refinance our portfolio of UK solar assets 10 months ago with the listing of the £60 million index linked Solar Bonds on the London Stock Exchange, fully subscribed by two-leading financial institutions was indicative that the sector has come of age as offering the risk return profile that appeals to institutions.”
The stability of returns on solar investment is what makes the industry an attractive prospect to certain types of investors, such as pension companies, the article continues. It says the fact that solar and other renewable assets are being placed into structures demonstrates that they are establishing themselves as a separate and acceptable asset class.
The report includes a range of sections looking at finance in the solar industry, including tax equity, consumer finance and crowdfunding, yield cos, bonds and securitisation, and mergers and acquisitions.
One section of the update also highlights why investment in renewables, including solar, is needed. Using figures from the International Renewable Energy Agency (IRENA), the report notes that $550 billion (£327bn) of investment is needed every year through to 2030, to secure a transition to sustainable energy and keep global temperatures from rising above the agreed 2C threshold.
IRENA stated that most of this investment must go to the solar, wind and hydropower sectors. The organisation argues that solar deployment needs to increase by a factor of 12.
It calculated that the switch to renewables would also provide $740 billion (£440bn) of savings each year in environmental costs, compared to burning fossil fuels – effectively cancelling out the additional investment required.
Photo: Intel Free Press via Flickr
Take our 2014 reader survey and you could win an iPad, Kindle or donation to a charity of your choice.
Microscopic hydroelectrics and space-based solar: the renewable energy of the future
Solar power: renewable energy’s ‘more acceptable face’
India plans to build ‘world’s largest’ floating solar power plant
Scottish solar industry reaches ‘significant’ 100MW milestone
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
The Environmental Impact of Software Sprawl and SaaS
How To Use Solar Power Sustainably At Home
Building a Career in Green Construction: Tips and Insights
Solar-Powered Security Systems: Protecting Your Home and the Environment
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
Managing Your Clinical Research Workload to Be Eco-Friendlier
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?