« Who’s going to buy CREBs? | Main | Renewable Gen in California »

What’s Your Investment Threshold?

In most of the markets my company is active in, solar is close enough to grid parity that it can no longer be considered “too expensive” or “not efficient”.  Colleague Aidan Foley has a great post that 50% of US markets are now solar-ready.

image

Now it’s about discovering what the off-taker’s investment threshold is, and how you compete for investment dollars.

Most of my corporate customers use discount rates of seven to nine percent—solar now meets that easily with the value put on RPS compliance using tradable RECs.  Investment solar gives you mid-teens returns if you are a corporate owner [not subject to passive loss restrictions].  Not a bad return on investment given the low risk of solar energy production. 

CAN PV WORK FOR ME?

PHOTO

My Photo

Linked In

View Ted Horton's profile on LinkedIn

Technorati

Add to Technorati Favorites

SKYPE

About

This page contains a single entry from the blog posted on February 17, 2010 1:16 PM.

The previous post in this blog was Who’s going to buy CREBs?.

The next post in this blog is Renewable Gen in California.

Many more can be found on the main index page or by looking through the archives.

Powered by
Movable Type 3.34