Posts tagged with: Spain solar has announced that they are again working with partners IndustryRE to offer a unique, high yield, photovoltaic investment product with revenue streams guaranteed by the Spanish feed-in tariff system.

The solar photovoltaic (PV) sector is a growth industry and has been the focus of government support with the dual purpose of meeting climate change targets and of course slowing the effects of climate change.
More recently, the benefits of renewable energy, and in particular solar PV have been expounded also as a means of helping to revitalise the economy through job creation and investments in new , a concept explicitly expressed by both Barack Obama and Gordon Brown.

This opportunity is for the purchase one of twelve solar installations based in the Spanish region of La Rioja, which although now is more famous for it’s wines, has the potential in terms of climate and legislation to be future world leader in solar PV installation.

The solar installations, currently owned by various Spanish SL companies are connected to the Spanish national grid and are therefore able to take advantage of the feed-in tariff law RD661/2007 which guarantees a fixed rate of 0.44 euros/kWh for energy fed back in to the grid.

The installations currently in place are also provided with licenses/permits, insurance, utility contracts along with maintenance and company administration. With the above market rates paid for solar energy – guaranteed for 25 years (CPI included) and the additional benefit of Spain’s high levels of solar irradiance, the La Rioja solar installations will offer a unique, secure return for investors protected by government laws.

Each PV installation will be legally owned by the respective Spanish SL company taking care of the modules, inverters, trackers etc. with contracts in place regarding the sale of electricity to the utility companies at the rates set out in the feed-in tariff. With a maximum installed capacity of 100 KW, investors will be able to enjoy returns on investments at around 8-10% over a period of 40 years.

Investment – Solar Photovoltaic
Budget – From 1 Million Euros
Finance Available – 60%
ROI – 8-10%
Investment Duration – 40 Years
Exit Strategies – Available

Click Here To Find Out More Information And To Make An Enquiry

Solar Feed In Tariff is working with a leading figure in the Solar Investment market to bring to you a stunning new investment product.

This is an opportunity for Investors to purchase a Solar Bond for 10,000 Euros that pays an annual income of 10% for five years and a full capital repayment.

Subscriptions to the bonds are available until end of November 2009.

The investment opportunity is to purchase a solar energy bond from a solar installation. The installation is operational with complete permits and licenses, utility contracts, maintenance, insurance and company administration.

Each bond costs 10,000 Euros and pays a fixed interest of 10% per annum for five years and a full capital repayment.

Spain has been one of the most successful countries in the public promotion of electricity from renewable energy sources (RES-E) , particularly wind electricity. This support has been based on a feed-in tariff (FIT) scheme. Although the basic structure of the system was implemented in 1998, it has been modified in 2004 and 2007.

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The New York Times has run an editorial highlighting mistakes made by the Spanish government in subsidising their solar industry in recent years. While Spain was held up as an example of how strong feed-in tariff (FIT) laws can greatly encourage investment and growth within up and coming renewable industries, amendments made by President Zapatero’s government have caused a crash in the photovoltaic market in Spain.

The essential problem of the Spanish tariff which was introduced back in 2007 was that it had no long term provisions or ideas of how to be market reactive in the case of various investment paterns. The generous tariff offered 0.44 euros per kW of energy fed back in to the national grid. The Spanish government anticipated a steady investment pattern over a period of years, however, the media interest along with the high yields made possible by the tariffs caused a short term boom in the solar industry.

In response to the inundation of solar installations across Spain, the government was forced to make changes to the tariff system. With many already signed into investment scheme the government pulled the rug out from under them by reducing the tariff incentives by 30%. With investors already tied into long term deals and with large quantities of PV equipment already being shipped from manufacturing bases in China, many had there fingers burnt by a solar industry which had been created artificially over a short period of time.

Santiago Seage, the CEO of Abengoa Solar SA commented on the situation saying, “What’s important for the regulation of solar is stability. Unfortunately, up to now, we have had too many changes and if the context changes, you can make mistakes in business decisions.”

The Spanish lesson, as set out in the New York Times indicates clearly the need for a tariff which both encourages strong growth of the industry but also offers long term stability by not creating an artificial market with tariff levels which are too high. Germany perhaps offers the best example of long term stability with a healthy PV market capable of being market reactive.

With regards to market stability, Julie Blunden from the US company SunPower Corp was quoted in the New York Times as saying,

“The most important lesson, which everyone has learned, is that if you’re going to establish a feed-in tariff, you need to figure out how to make it market-responsive.”