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Signs that pension investors are switching to renewable energy

Smart Taxes has long argued that only investment in real things, basic needs like energy will provide secure pensions.  There is evidence this is happening, but not where it should – locally in Ireland, but in Germany and other EU States with attractive feed in tarrifs. 

Solar21 has succeeded in building a fund of more than €100m from Irish investors. The fund, which invests in solar photovoltaic (PV) farms across Europe, expects to morph to €500m in the next 18 months, as investors are increasingly looking to solar energy as a viable investment route in the midst of volatile equity markets.

Currently, the majority of Solar 21’s funds are invested in photovoltaic solar farms to provide renewable energy to the German and Italian national grids, which are backed by 20-year feed-in-tariff agreements, guaranteed by the EU and the respective governments.

Michael Bradley, CEO of Solar 21 Renewable Energy Ireland, explained that the returns from the sales to the national grid are re-distributed to the investor by way of a fixed 8.5pc annual coupon.

“The high-level coupon level and the current volatile equity markets are the key reasons why so many people are choosing to invest in solar energy,” he said.

He said it was not difficult to see why so many people are drawn to the “radically different” solar energy investment concept, as the “stable investment environment” for solar PV projects contrasts so much with the current equity market volatility.

He said Solar21 focuses specifically on those economies with the most attractive long-term guaranteed feed-in-tariff agreements.  (link to article) 

Posted in Resilient Investment.