People Love Solar Energy. So do Investors!

Oct 16, 2014

Looking for a bright spot these days? I know I am. I spend a lot of time these days searching and digesting news and information about royalties, and with so much terror and sadness in the news, I know well the notion of looking for a bright spot.

Even though I regularly see the bad and the ugly, I am also lucky to see the good -- the bright spots. More on these coming up! But first, one more point about royalties.

Royalty Insider exists to focus attention on royalties and to illuminate stories and news about selling and buying royalties – royalty investing. There are many different types of assets that generate royalties. Basically, any asset that generates on-going revenue for the owner can be considered an asset that produces a royalty stream. Examples are movies, books, songs, song lyrics, patents, and energy such as oil and gas production, wind and solar, etc.

Solar is the Good

Among all of the energy royalties one type stands out among the crowd: Solar energy!

For so many reasons, solar is among the good. Here are a few reasons why:

  • Solar offers great opportunities for innovation, engineering, business and investing – solar’s future potential market is massive
  • Solar is a renewable energy and does not put carbon dioxide into the atmosphere
  • Solar fosters hope in the future – people love the idea of solar energy and are ready to “shake up the way we generate and use energy”
  • Solar power can’t be wielded as a weapon (or at least can’t be wielded as readily as oil)

And, technologically? Solar is promising! “For the past 40 years or so, the solar industry has been experiencing an exponential decrease in solar manufacturing costs.”

As far as opportunity is concerned, “If Ray Kurzweil […] is correct in his view that […] solar will meet all of our present day energy needs in 14 years and all of the world’s future energy needs in 20 years, due to higher energy use per capita, then the solar market would have an equivalent worth to all the energy markets combined.” If you don’t know Ray, read about him here.

Companies like SolarCity are poised to take advantage of the coming solar revolution. And, given this positive outlook for solar, investment opportunities in solar farm royalties and solar company stock, like that of SolarCity (NASDAQ: SCTY), have the attention of investors.

To read more about the business, and investment opportunities in solar read these two very interesting articles from Seeking Alpha and BBC News respectively.

First up is "Solarcity: Undervalued In the Face of Possible Obstacles". In this article, you will find good background information on the solar industry and detail on SolarCity as a potential stock to own. Read the full article here.

Next is, "Oxfordshire solar power scheme shares go on sale." This article by BBC News covers the story of a solar power scheme in Britain that expects to yield an 8.2% return to those who qualify for Enterprise Investment Scheme tax relief. Read the full article here.

Solar Royalties are HOT!

Couldn’t resist that! Seriously though, here is how it works. In the world of royalties, a solar farm can sell forthcoming royalties from production to an investor who would then take over the royalty payments. In return, the solar farm receives capital to reinvest in increasing the farm’s production capacity and thus revenues. The investor then owns an asset-backed alternative investment that is uncorrelated to the equities market and has the potential to produce a steady income stream and provide a good ROI.

Top Business Heads are fans of Solar Energy Investments

Already solar opportunities are attracting the likes of global leaders like Richard Branson and Elon Musk. Even the “Heirs to the Rockefeller family, which made its vast fortune from oil, are to sell investments in fossil fuels and reinvest in clean energy.”, based on news reported by the BBC in September. Read the full article here: “Rockefeller’s to switch investments to ‘clean energy.’”

If you would like to see royalties at auction visit Royalty Exchange.