If you want to invest your money profitably these days, it’s hard to find a safe investment with a high return. One thing is for sure, the sun will still shine tomorrow. Buying a solar park or investing your money in an existing solar plant makes sense, as you benefit from ongoing income and the profitability can be planned.
The easiest way to buy an existing photovoltaic plant is through a specialized online marketplace such as Solar.red and its partner. This is an international platform where private and commercial investors can buy or sell solar parks as well as smaller and larger photovoltaic plants even from 50 kWp.
Many private investors do not know that it is not always necessary to build yourself to become the owner of a photovoltaic plant. There are numerous existing plants that are ready for sale, even before the expiration of the government-guaranteed feed-in tariff for the electricity generated.
Together with our partner offer the possibility of viewing offers from other users, as well as the purchase of new or even existing plants. It is possible to make solar investments in various capital amounts, whereby smaller plants can be purchased for as little as a few thousand euros. This ensures that even investors with a relatively small investment capital can buy solar plants.
Sell solar park or solar plant
The reasons for selling a solar plant or a solar plant are often closely linked to a need for liquidity and profit. The sale of a photovoltaic plant can be a lucrative option in this context. The liquidity released by the sale is often used to invest in new photovoltaic plants, taking advantage of existing special tax benefits.
One is eligible for the sale if a first-ranking right to use the roof or the open space for the operation of a PV system is registered in the land register. If this is the case, the entire plant documentation, documents and contracts as well as appropriate pictures of the plant are required for the sale.
It is then necessary to determine the current market value. This is calculated by discounting the future expected income and costs from the time of the sale until the end of the remuneration with a comparative interest rate.
Solar.red and its partner offer an extensive network of private and commercial investors, family businesses, companies, funds or asset management companies, which makes it easy for interested parties and buyers to acquire the plant that fits their individual ideas.
Solar plant yield
Renewable energy investments offer investors numerous high-return options. In general, the purchase of a solar farm requires a high initial investment with relatively low annual operating costs. The return calculation for solar farms is complex as it is determined by several factors.
The payback period and return on investment can be determined in detail by considering the following factors:
1. Cost of the solar park
A solar system consists of modules, inverters, cables and mounting structures. The lower the cost, the shorter the payback period. It is therefore advisable to take advantage of government grants and tax incentives to reduce acquisition and installation costs.
2. Generated solar energy
The estimation of solar energy production is done by using the so-called kilowatt peak. This is calculated from the result of the maximum solar radiation for a given number of hours times the solar farm’s output in watts.
For regions with a higher number of sunshine hours, the return of investment (ROI) will be shorter because the solar energy production is also higher.
3. Financing model
The financing method the owner has chosen to fund the system cost also determines the return on investment.
If someone chooses bank financing, the payback period may vary, considering the interest rate charged by banks.
Advantages from investing in solar plants
A photovoltaic system is a long-term, well-invested investment with a balanced risk-return profile – benefiting not only your wallet, but also the climate. Installing or operating a solar farm is one of the most cost-effective ways to generate a return on low-value or agricultural land.
Solar farms cause very little environmental impact and do not require a change of use because they receive temporary planning permission. They can coexist with land use for sheep or poultry grazing and meet set-aside and biodiversity enhancement goals. If needed, a solar farm can be completely removed without leaving a trace.
Those who invest in a solar park rely on a technology that has been tried and tested for many years and benefit from state-guaranteed remuneration, various tax advantages and one of the most efficient and lucrative investments currently conceivable on the capital market. Solar energy can be made available almost everywhere where there is sunlight.
The cost of solar panels is currently on a rapid decline and is expected to continue to fall in the coming years – consequently, solar parks and photovoltaic systems have a promising future, both in terms of profitability and environmental sustainability.
Those who lack the equity capital to acquire a solar park have a good chance of obtaining a bank loan or a low-interest loan. By presenting a business plan outlining expected sales and liquidity movements, it should be possible to finance the cost of the acquisition.