We make investing in solar energy simple, safe, and secure.
Why is this investment only available to accredited investors?
The current regulatory structure that we are utilizing for this investment only allows CleanCapital to raise funds from accredited investors (defined below). In the future we plan to investments to non-accredited investors and will keep you updated on those opportunities.
What is an accredited Investor?
The US Securities and Exchange Commision (SEC) established the rules around accredited investors. In the United States, to be considered an accredited investor, one generally must have a net worth of at least one million US dollars, excluding the value of one's primary residence, or have income of at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.
The term accredited investor is defined in Rule 501 of Regulation D. When you proceed with investing there will be clear instructions to provide confirmation of accredited investor status.
Can I review the Private Placement Memorandum (PPM)?
What is the typical investment minimum?
The investment minimum is currently $50,000 but CleanCapital looks forward to lowering the minimum in the future. The targeted return on equity investments is 11-13% though all investments have risks and there is no guarantee that this targeted return will be achieved. More detail is available in the PPM.
How does investing affect my taxes?
Each investor should consult their personal tax advisor before investing. Operating solar investments typically qualify for 5 year Modified Accelerated Cost Recovery System (MACRS), the current tax depreciation schedule that applies to solar assets in the U.S. Each investor will receive a K-1 from an affiliate of CleanCapital which will reflect the investor's pro rata shares of losses (which include depreciation).
How it Works
How risky is solar investing?
All investments have some risk, but clean energy investments, and solar in particular, have proven to be very reliable investments. (To learn more, read A Case for Real Assets & Renewable Power in Today's Investing Environment.) Solar projects are not mechanically complex and require little maintenance. Some of the risks include contractual, weather, equipment and credit. CleanCapital takes efforts to minimize these risks.
How are receivables, payables and distributions managed?
CleanCapital manages all investments; we collect all revenue and pay all project expenses. Investors will be able to track performance 24/7 on their personal investor page.
How long does an investor have to stay in the investment?
Solar investments are long term, yielding investments. Investors are purchasing are long term power purchase agreements between the projects and a power customer. In many cases these are well over 10 years so that cash flow is important to the investments. We encourage investors to have a long term investment horizon. However, CleanCapital will consider compelling liquidity opportunities to sell investments. CleanCapital will also assist investors that seek to sell their individual interests.
What are the sources of revenue for a solar project?
Solar projects can sell two attributes: power and, depending on the state, renewable energy credits (SRECs). The project owner will enter into long-term contracts to sell the power at a defined price. The project owner will also typically (but not always) enter a long-term SREC contract. This creates two reliable and ongoing revenue streams.
What ongoing expenses do solar projects have?
Ongoing project expenses include insurance, operations and maintenance, property tax, rent and CleanCapital's management fee. All of these expenses are expected to be paid out of project cash flow; no new capital is expected to be required from investors.
Who manages the solar project?
CleanCapital originates, screens and manages every investment offered through the CleanCapital platform. The investment entity is managed by CleanCapital on behalf of the investors, and CleanCapital will make decisions on behalf of the LLC.
Can you sell your shares?
CleanCapital is working on a liquidity product that will allow investors to sell shares, and expects this to be unveiled in 2017. Until then, CleanCapital will assist investors that seek to sell their individual interests.
If you have more questions, contact email@example.com.