Solar energy is exploding in the United States. In 2014, over $18 billion was invested in the U.S. solar power industry. Until now virtually all of that capital came from large institutional investors. Solar energy assets have become a widely accepted, non-correlated asset class among institutional investors due to their well-defined investment characteristics. With predictable cash flows, excellent tax incentives, the recent reduction in installation costs, positive environmental impact and “free” fuel, you might ask yourself why more investors aren’t participating. The quick answer to that question is lack of access to quality investment opportunities in the sector. At Clean Energy Advisors (CEA) we create innovative investment structures that solve this problem.
We created the CEA Utility Income Fund to provide impact investors with access to a professionally managed portfolio of utility scale solar energy assets and the tax advantaged income stream generated by the underlying projects. The Fund consists of projects located in states with regulated utility markets and favorable renewable energy programs. All electricity produced by the projects will be sold to high credit quality utility companies under long-term, fixed-rate Power Purchase Agreements.
In early 2014, Clean Energy Advisors brought to market the first of its kind Renewable Energy Partnership. The partnership became the first such structure to pass-through both the income and tax attributes associated with utility scale solar energy assets. Given the overwhelming response among family offices and individual accredited investors, CEA successfully closed the fund in December 2014.