The Solar Asset Class
The solar project 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 the past 5 years, institutional investors seeking above-market returns, without sacrificing on the quality of the asset, have invested tens of billions in these assets.
Congress has set the Investment Tax Credit (“ITC”) for eligible solar projects at 30%. The ITC was renewed in December 2015, providing seven plus years of new runway. Investment returns (inclusive of tax benefits) are often better than other tax-advantaged investments such as LIHTC. And, distributed utility investments diversify portfolio risk while mitigating project and creditor risks for institutional tax equity investors.
Solar Equity Investments and Ownership
Sol Systems works to acquire projects on behalf of cash equity investors such as utilities and proprietary funds. To date, Sol Systems has delivered over $250 Million of solar projects with Power Purchase Agreements (PPAs) to strategic investment partners.
Diligent Asset Management
Sol Systems’ asset management services began in 2008 when the firm started providing SREC monetization services to hundreds of solar installer partners. As the company grew its tax equity and project finance services, our asset management role has matured to provide investors with required third-party support to manage and monitor their assets, and ensure that financial and operational performance meet expectations.