5 Reasons To Add Solar Farms To Your Real Estate Portfolio


If you’re a real estate investor, you’ve got to make wise choices. And you need to think beyond the conventional residential and commercial niches. Are you looking for an excellent investment opportunity that promises fat returns and helps save the planet? Then solar farms are your best bet!

Here’s the deal, boss- solar energy is booming and it’s here to stay. Statistics show that there are 7197 solar farm developers in the US in 2023. And a growing number of consumers want to move to clean energy sources. So now is your time to make the most of the opportunity so that you can get an early advantage.

So you’ll probably want some good reasons to get in on the action, right? We’ve got a few valid ones for you to cash in on the sun, baby!

Sustainability is trending

Let’s accept it, sustainability is the new cool. Not keeping pace with the green real estate trend means you may miss out on massive profits in the future. Homeowners and business owners want to be eco-friendly these days. So investing in green properties makes sense.

In fact, a solar farm is even better than eco-friendly homes and commercial buildings when it comes to sustainability. You actually get a chance to contribute to a better future.

Power purchase agreements

Besides sustainability, you get the benefit of reliable income from a solar farm investment. Most of them operate under power purchase agreements. It means a utility company agrees to purchase the electricity it generates at a fixed rate for a specific number of years.

So you have a passive income stream with a guaranteed buyer for your energy. Could you ask for more?

Low maintenance and low risk

Another reason why solar farms make a good investment choice is that they are low-maintenance. Unlike other investments like rental properties and commercial buildings, they hardly need constant repairs or upgrades. You can leave them sitting there to soak up the sun and generate energy.

If your developer takes care of the Solar Farm Land Requirements, you hardly need to worry about the legal aspects of ownership. Land requirements include size, regulatory compliance, and zoning norms.            

Tax incentives and credits

Well, this one’s another great thing about owning a solar farm. You can get a ton of tax incentives and credits for owning a green asset. It offsets the initial investment costs and increases your return on investment.

There may be additional incentives available, depending on your state and local regulations. It’s a win-win!

Diversification of investment portfolio

Diversification makes you a savvy real estate investor as it limits the risk and boosts the value of your portfolio. Adding a renewable energy asset to your portfolio is the best way to diversify it.

The best part is that solar farms give a valuable hedge against market volatility because of a low correlation with other asset classes.

So you’ve got some rock-solid reasons to consider investing in a solar farm, right? Go ahead and seal the deal because it’s the best thing you can do for your real estate strategy.