Photovoltaics (PV) and concentrating solar energy are growth sectors. And it is forms of energy production that play a key role in the energy transition. However, this also means that there is a high need for funding. Private investments can thus become a win-win situation. But how does that work? And how future-proof is photovoltaics really as an investment?
Photovoltaics and energy transition
The coming decades of solar energy will very likely look very different than the past decades. Photovoltaic (PV) and concentrating solar energy will continue to grow rapidly. However, in the years to come, the development of solar energy technologies may depend not least on how they interact with other energy technologies such as wind and storage. Changes across the energy system, such as increasing electrification of buildings and vehicles, the advent of clean fuels, and new commitments to greater equity and a more sustainable circular economy, will define the future of solar energy. It is clear that there is an enormous Expansion of the already installed PV capacity in addition to other measures needed to cover our entire energy needs from renewable energies.
In fact, PV is already relevant in its contribution to electricity supply. In 2021, 8.9% of gross electricity consumption in Germany could be covered by PV - with electricity generation of 50 TWh. This means that the proportion of electricity consumption covered by PV is second only to onshore wind energy and about the same as covering electricity consumption through energy production from biomass. On sunny days, electricity from photovoltaic systems even covers two thirds of the electricity requirement.
In 2021, a total of 42% of our electricity requirements could be covered by renewable energies. In order to reach 100% there is a lot to do. And there is still a long way to go before the target share of renewable energies in gross electricity consumption of at least 80% by 2030. It is also important to make investments before you can benefit from renewable energies. You can now also do this as a private person, not only in the sense that you put a PV system on your own roof, but by investing in photovoltaics as a financial investment.
PV as an investment
This possibility of investing in PV is possible via a solar fund, but also via a solar direct investment. Solar Direktinvest GmbH, for example, offers the latter. This has specialized in the construction and sale of PV direct investments in Germany. New projects are constantly being offered. Investors can buy new and used PV systems on leased land and roof areas and sell them again via Solar Direktinvest. The level of remuneration is determined by the Renewable Energy Sources Act. It can be calculated in advance how much the completed photovoltaic system will generate. The amounts can therefore be calculated fairly precisely. And that in turn makes investing in a PV system a low-risk investment with high planning security. The risk lies primarily in the completion of construction of the plant. This also means that investors take on a risk of almost zero when purchasing an existing system. Because further eventualities are covered by an all-risks insurance.
A residual risk remains due to shading of the system. Because if the system is shaded, less or no electricity can be generated. This also reduces the income from the system. Anyone who buys a PV system as an investment should therefore pay attention to the surroundings of the location. Trees in the vicinity of the plant must be cut back regularly. In addition, new planting in the vicinity of the facility by the owner of the area should be ruled out as far as possible.
By the way: In the early days, PV electricity was extremely expensive. But in the meantime, the electricity generated by photovoltaics is doing very well in price comparisons. The large PV power plants in particular can produce cheap electricity.
lease roof space
If a free roof area is available on your own house, you can of course build a photovoltaic system on your own. But despite government funding, a loan or the necessary equity is required for this. Solar Direktinvest offers to take over the effort by leasing the roof area. Roofs in need of renovation are renovated free of charge by Solar Direktinvest. And after 20 years of leasing the roof, the owners of the space share in the income from the solar system.
As our example shows, there are two ways to benefit from PV systems outside of personal use: as an investor in a turnkey system or as a lessor of a roof area or property.
EEG Easter package interesting for PV investors
The central control element for the expansion of renewable energies is the Renewable Energy Sources Act (EEG). After the EEG The share of renewable energies in the power supply should be at least 80% by 2030. It was created with the aim of protecting the climate and the environment and at the same time is intended to reduce the economic costs of energy supply. Specific goals are the conservation of fossil energy resources and the further development of technologies for generating electricity from renewable energies.
The federal government’s so-called “Easter Package” 2022 as part of the EEG is intended to accelerate the expansion of renewable energies. The reason for this is that Germany should become independent of fossil energy imports as quickly as possible. Among other measures, the Easter package includes accelerating planning and approval procedures for renewable energies and increasing the expansion paths for wind and solar energy. This is good news for investors in PV. This is because solar projects become less bureaucratic in their implementation.
PV investment - summary
A physical investment in electricity-producing PV or solar systems is made via solar direct investments. In this way, investors can build their own small power plant by leasing appropriate areas. Remote maintenance makes it possible to keep an eye on power generation and monthly yields. Investors can benefit from the feed-in tariff and tax incentives. The landlords benefit from the income from the lease. In the long term, the system can contribute to expanding and promoting the construction of PV systems in the interests of the energy transition.
11/17/2022