Rich Ground for Investors
The solar asset class provides rich ground for investors seeking compelling risk-adjusted returns. With respect to real estate and other infrastructure, solar project investments compare favorably from both a risk and returns perspective. As a result, in recent years, institutional investors seeking above-market returns, without sacrificing on the quality of the asset, have invested tens of billions in these assets.
Primary investors in the asset class are insurance companies, banks, and various strategic corporations such as unregulated utilities. These investors participate as both equity and debt partners to finance the cash flows and/or tax incentives.
Whether an investor would benefit more from asset ownership or from a tax equity investment depends on the organization's investment criteria and tax liability.