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Green energy - Family business
Is 10% annual gross return on solar panels still possible?
These days, everything involving green energy is going through a difficult period. Various articles and press reports confirm this tougher climate. Green power certificates for solar panels have been declining again of late. This results in a longer payback time of about 11 to 12 years.
Private individuals, investors and entrepreneurs frequently pull out because of the longer period needed for recovering the investment in solar panels. This view is often too shortsighted. Solar panels have a lifetime of about 25 years. Once the investment has been recovered, well over 12 years remain. That period following the payback time is a significant element in determining the return. Today, this net annual return of solar panels is +/- 7.5% (including new legislation April 2013).
Companies with high electricity consumption like many production companies enjoy a double advantage from installing solar panels for their own use. On the one hand, there are the enormous savings in buying electricity, resulting in extra cash being released for the activity or for new investments. Rising electricity prices therefore have little if any influence now. On the other hand, their investment produces a gross annual return of +/- 10%.
Deloitte Fiduciaire can assist you professionally in preparing an objective return on investment analysis and looking for the optimum financing solution. A well-supported bank memorandum is certainly no luxury nowadays. Deloitte Fiduciaire provides a clear financial plan devoting attention to the return as well as to banking, financial, taxation, legal and VAT aspects, which ensures that, as entrepreneur, you obtain a full picture of the investment.
Solar panels are still an attractive investment. Certainly for companies with high electricity bills. Look at how much it would deliver in savings on electricity and extra cash for your business. Deloitte Fiduciaire can assist you professionally with this, in order to illustrate the total impact of your investment objectively.