An Opportunity of a Lifetime

An Opportunity of a Lifetime

The production of solar panels has become increasingly efficient in recent years, with low-cost countries such as China taking a lead position in producing high-quality and efficient solar modules. Governments around the world are, therefore, anticipating a reduction ranging from 10-15% in the future settlement and market prices per MW.

Investors ought to enter the industry now, rather than later, in order to secure a PPA with a high fixed price per MW and a long time horizon. If the investors manage to do so, they will obtain an extremely appealing long-term investment, providing stable and secured cash flows that are uncorrelated with business cycle movements. In addition, they can secure financing at a very low market rate with a considerable time horizon given the incredibly high security of the investment. To summarize, solar energy investments provide a once-in-a-lifetime opportunity, because it is:

1 A Cash Flow Generating Asset

The investment entails high-quality cash flow generating assets with a proven and highly reliable technology, which requires virtually no maintenance.

2 State-guaranteed

The cash flow structure is state-guaranteed and fully predictable, with high returns from power purchase agreements.

3 Easily Obtainable

Financing is easily obtainable and is characterized by a low-cost structure due to the liquidity surplus from day one of production, which enables quick pay-off of debt.