Solarcity the popular solar leasing company is offering solar bonds for sale with returns of up to 5 75 and a low minimum investment.
Commercial solar panel solar bonds securities offerings.
How does pace financing work.
Pace financing is a special type of financing that is available in areas where the local government has allocated funds.
Or at least that s what solarcity says.
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.
Take advantage of solar policies and incentives related to commercial photovoltaic solar systems and help reduce your utility costs.
Solar bonds are designed to offer interest rates higher than typical savings accounts cds money market funds and other comparable investments.
Bond finance has been used in the marketplace to finance solar projects.
Solar bonds are corporate notes issued by solarcity with earnings that are powered by the sun.
The investors are compensated by an interest rate applied to the amount of their purchase payable by the issuer.
Solar bonds make it easy for anyone including renters and lower income folks to take advantage of the investment potential of solar power.
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.
Open to everyone previously solar investing was reserved almost entirely for large institutions.
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.
Here s the general process for using pace financing to.
And we charge no investment fees when you invest direct so you keep what you earn.
By investing in solar bonds you re helping solarcity harness clean abundant solar power.
Securities or bonds allow for the company offering the investment more of an opportunity to set the rate of return.