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Thanks for the great questions. Dividends: possibly and ideally for US tax purposes. More importantly powerplants tend to generate persistent income(not necess
by shaburn 4y ago
Thanks for the great questions.
Dividends: possibly and ideally for US tax purposes. More importantly powerplants tend to generate persistent income(not necessarily profit)as long as they produce power, so this would be a yield product more than growth(ie most YC startups). It may however make more sense to set them up as pass through vehicles that send income to owners instead of dividends, but it's too early to say and legal needed.
Risks: The same as most other US solar farms(generic I know but could probably find it in a public filing for actual farms later) but what would be unique are A. potential conflicts of interest between the ownership structure such as control(ie scenario some owners want to upgrade equipment down the road vs some wanting to sell the real estate for a capital gains profit) and B. Potential conflicts between the seller, especially related to sophistication, or lack thereof, and the buyer; be the seller the platform or a user on the platform. C. One potential risk mitigation factor that could be unique is creating some type of more liquid vehicle like a SAFE for Solar. *Exceptional project risk at the moment is actual access to panels without delay.
Earnings projections: these are way too project specific. However, they will have an implicit inflation hedge on two fronts(above the yield projections) as real estate and electricity rates tend to move in correlation with inflation; where typical income products like bonds generally do not. Earnings can also be done by long term contract with credit worthy counter parties such as google(usually at discount) or float on the open market with insane volatility in states like Texas. In theory, they are more analogous to a building for rental purposes and you select between a corporate tenants or hotel stays; except electrons are a ubiquitous commodity.
Similar projects: TBD and unique to each product
Developer: TBD and unique unless a great developer(s) could be selected.