Bond finance has been used in the marketplace to finance solar projects.
Commercial solar panel solar bonds securities offerings.
Securitizing solar system payments is a lot like securitizing mortgages something the banking industry has done with great success said the motley fool s travis hoium.
Solarcity the popular solar leasing company is offering solar bonds for sale with returns of up to 5 75 and a low minimum investment.
Solar bonds are designed to offer interest rates higher than typical savings accounts cds money market funds and other comparable investments.
Property owners who aren t able to or interested in buying solar panels in cash can finance their solar energy system with a solar loan or a solar lease or power purchase agreement.
Here s the general process for using pace financing to.
By investing in solar bonds you re helping solarcity harness clean abundant solar power.
By purchasing bonds and the rights to the cash flows on the underlying debt investors are in essence lending money to the issuer.
Or at least that s what solarcity says.
As such community solar project developers when faced with the potential implications of being found to be engaged in the offering and sale of a security may conclude that the most commercial path forward is to ensure that a community solar subscription is not deemed to involve the offer or sale of a security for securities law purposes in the first instance.
How does pace financing work.
Open to everyone you don t have to be a big investor to get paid by the sun.
Our financing specialists have established relationships with respected developers and panel manufacturers and can tailor a financing plan for photovoltaic pv solar systems for your business.
Solar bonds are corporate notes issued by solarcity with earnings that are powered by the sun.
Solar bonds make it easy for anyone including renters and lower income folks to take advantage of the investment potential of solar power.
And we charge no investment fees when you invest direct so you keep what you earn.
Pace financing is a special type of financing that is available in areas where the local government has allocated funds.
Securities or bonds allow for the company offering the investment more of an opportunity to set the rate of return.