Investing in solar energy projects
For retail investors, investing in solar energy projects often comes with challenges. If you invest in a specific investment fund for energy projects on the stock exchange, the fund spreads your money across many projects, giving you little say in where it’s invested. Independently investing in solar projects is often only possible when you develop the project yourself or when you have the right connections in the industry.
Invesdor enables you to invest directly in the project of your choice, offering fixed interest rates over a short period, all managed through a digital platform.
What is a solar energy project?
A solar project is a large-scale photovoltaic installation that generates electricity by converting sunlight into electricity. These installations are usually located on open land with strong sun exposure, minimal shading, and access to a reliable supply network, ensuring efficient energy generation and distribution. The generated electricity is then sold to an off-taker that uses the energy.
Sunlight is predictable, and solar energy projects take full advantage of this consistency. By analyzing location-specific solar irradiation data and seasonal weather patterns, experts carefully select sites that maximize exposure to sunlight. Advanced forecasting tools, like those from the Photovoltaic Geographical Information System (PVGIS), enable precise predictions of energy production. This thorough analysis ensures steady and reliable energy generation, reducing uncertainties and enhancing the stability of solar energy projects.
Photovoltaic systems have become a trusted method for generating electricity, with decades of advancements ensuring their efficiency and durability. Modern panels are built to operate reliably for 20-25 years, requiring minimal upkeep, which supports consistent energy production and dependable returns for investors.
Why invest in a solar energy project?
Predictable cashflow
Revenue stability ensured through lifetime contracts.
Fixed returns
Earn annual interest rates between 6–8%.
Growing market
Invest in clean energy with rising global demand.
Direct project selection
Choose exactly which project aligns with your investment goals.
Support the energy transition
Contribute to reducing CO₂ emissions.
Stable energy supply
Solar projects ensure reliable and decentralized energy production.
Phases of solar park development
Solar projects progress through stages that reduce risk over time. Early phases focus on planning the project and permitting, while later stages involve construction and the start of the actual energy production when the project starts operation.
- Development phase: This stage involves creating the project blueprint, identifying the site, obtaining permits, and arranging funding. While it offers high potential returns, it also comes with the greatest uncertainty as many factors remain unconfirmed. If for example to building permit is not obtained, the project can not be built.
- Construction phase: With plans finalized and permits in place, the focus shifts to building the solar project. Though risk decreases, there is still the potential for delays or unexpected costs during this phase.
- Operational phase: Once operational, the solar farm generates electricity and revenue. At this stage, risks are minimal, supported by long-term energy contracts and predictable income streams.
How does the financing structure of a solar project work?
As highlighted in the section above, solar energy projects progress through the Development, Construction, and Operation phases, each requiring distinct financing methods:
- Equity: Provides initial capital for high-risk activities like land acquisition and permitting.
- Loans: Secured financing supports large-scale expenses during construction.
- Subordinated Debt: Bridges equity and loans, offering a balanced risk-return profile and predictable returns.
Renewable energy projects mainly offer subordinated debt, allowing investors to earn attractive fixed interest rates while minimizing exposure to the higher risks of equity.
Why invest through Invesdor?
Investing directly in solar parks through our platform offers several advantages that set us apart:
Tailored opportunitiesAccess carefully selected solar energy projects with strong impact and financial returns.
Attractive returns with low entry barriersStart investing from just €250 and earn up to 8% annual interest.
Simplicity and transparencyEnjoy personalized assistance from dedicated regional contacts and priority support.We provide all the information you need on the project page.
Steady returnsBenefit from a fixed interest rate over a defined investment period, offering reliable and predictable return.
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Frequently asked questions about solar investments
Yes, solar farms can be an excellent investment, offering a combination of environmental benefits and financial returns. With steady energy production and government incentives in many regions, solar energy projects provide predictable cash flows and fixed interest rates.
You can invest in solar energy projects through direct investments, green energy funds, or platforms like Invesdor. Direct investments allow you to choose specific projects, while funds spread your investment across multiple projects. Invesdor bridges the gap, enabling you to invest directly in solar projects through a fully digital platform with fixed returns.
Solar funds pool money from multiple investors to finance a range of projects, providing diversification but limited control over specific investments. Direct investments, on the other hand, allow you to choose the exact project to support, offering more transparency and involvement.
At Invesdor, there are no investment fees for investments in solar energy projects.
Yes, at Invesdor, retail and institutional investors can participate in solar energy projects with a minimum investment amount of €250.