What if an investment in an asset can also contribute to a greener, cleaner world with regular income production?
This is what you can experience with solar farm investment. Solar energy, being at the forefront of renewable resources, helps to deal with the skyrocketing rise in demand and growing concerns due to climate change.
Further observations have been made that, within the next three decades, the solar PV field can also develop itself with the addition of more solar farms. As a result, it will enable countries to generate roughly 25% of the world’s total electricity needs by 2050.
Therefore, solar farms offer an opportunity to set in stone the financial gains of a rapidly changing energy landscape while giving back to creating a sustainable future.
Want to know more?
Here are the 5 benefits of investing in a solar farm.
1. Produces Attractive Investment Returns
If you are starting a solar farm, then from a financial investment point of view, it could be very rewarding, as it promises stable and attractive returns.
Furthermore, these farms reap enormous revenues by selling their electricity to utility companies under lucrative long-term contracts, commonly called power purchase agreements.
Such agreements allow for one fixed payment over the contract period, which usually ranges from 10 to 20 years and ensures an income stream you can rely upon. From the solar investments, you can even enjoy capital allowances that enable you to write part of the installation cost against your taxable profit.
Also, energy prices rise with each passing day. Thus, such farms hedge against these costs and become among the most reliable, low-risk additions to any investment portfolio.
2. Reaches Sustainability Goals
Most companies, municipalities, and countries have set ambitious targets in terms of sustainability. So, if you invest in solar energy, you reach those goals and help others achieve theirs.
For example, by developing a solar farm, you contribute directly to the reduction of greenhouse gas emissions, air pollution, and reliance on fossil fuels. A large-scale solar farm can even offset several thousand tons of carbon dioxide yearly, equivalent to planting trees in thousands.
Moreover, unlike coal, natural gas, or oil, solar energy does not pollute or contribute to water scarcity since its functions need no water.
3. Enhances Grid Stability and Energy Independence
One of the big positives of solar farms is that they offer a way to contribute to local energy independence and grid stability.
Solar farms generate energy from the sun, which is an infinite resource, meaning areas and communities using solar energy are less dependent on foreign energy sources or fluctuating prices of fossil fuels.
So, solar energy is a dependable source in places where sunlight is perennial, complementing other energy sources to provide energy security.
It can also give stability to the grid. As the demand for electricity changes according to the time of year, solar farms even offer an alternative that will relieve the pressure from the grid during peak hours.
Hence, with the alternatives of energy storage with large battery systems, solar farms can store excess energy generated during the day and release it at any moment, enhancing the stability of the grid.
4. Creates Job Opportunities with Economic Growth
Solar farm investments spur job creation and stimulate the local economy. This is because the solar industry is a pretty labor-intensive sector; skilled workers are always required in the design, construction, and maintenance of solar farms.
Thus, it provides huge employment opportunities in engineering, construction, maintenance, and project management. Besides that, solar farms benefit the local communities economically.
Most projects are sited on leased land, providing predictable income for the landowners. For example, farmers, being the landowners, can continue using parts of their property and simultaneously generate passive income from the solar leases.
Furthermore, solar projects make an impact on the local economy by supporting local businesses in building better infrastructure and increasing local revenues.
5. Provides Future-Proof Investment
Solar farms are resilient and future-proof investments within a dynamically evolving energy landscape. The world is turning towards renewable resources, so the share of solar power should be high in meeting global energy demand over the following decades.
This situation occurs due to environmental and economic interests. Hence, as the cost of solar energy goes down steadily, it gains more competitiveness against the usual traditional fuels.
Unlike fossil fuels, solar energy is impervious to marketplace volatility and interruptions in supply chains, making it a sound investment. Moreover, once the initial investment is made and installation is up and running, solar farms have rather low operational costs.
This would bring you long-term stability that is very tempting to the investor, wherein returns would be both predictable and assured even under shifting economic conditions.
Your investment in solar energy also prepares you for an increasingly regulated future. Most governments increase the stringency of environmental legislation, impose carbon taxes, and mandate the use of renewable energy.
Therefore, by setting up a foothold in solar now, you are ahead of the regulatory trends and will benefit from further incentives as governments continue to support and grant subsidies for renewable energy initiatives.
Conclusion
The investment in solar farms is much more than an opportunity to invest for monetary purposes; it’s an opportunity to shape a sustainable future.
This is further complemented by opening up to solar energy, which results in stable and attractive returns, contributing hugely to a cleaner planet, energy independence, and the development of local economies.
All in all, living in a world that’s gradually skewing toward greener sources of energy means that investing in solar energy places you at the forefront of change.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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