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Legends Solar – Buy operating solar panels on commercial solar farms

legends.solar

11–20 of 167 posts

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#11

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

ROI is not knowable ahead of time. This might fit one person's risk profile and not someone else's.

It's also a good asset for people who are OK with lower returns if the investment slows climate change, or for people who want to make a bet that solar will be in higher demand in the future.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#12

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

Note that ROI is not the only criteria for investment. Some people invest on lower ROI investments if they think the positive externalities align with their values, and risk is just as important as ROI anyway.

While I don't think this investment is effective either way, there is probably a market for people that want a more visible way to track their impact.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#13
The math here is pretty straightforward, however, it doesn't look like all of the components necessary to do the math are available.

1. How long do I "own a solar panel"? Indefinitely?

2. What is the wattage of the solar panel and where is it located? i.e. what wattage will it produce consistently YoY? What power market?

3. What percentage fees does Legends take?

Frankly, #1 is the most important factor here by a long shot.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#14
A company named "Legend Solar" had some heartburn in Utah, about 3-4 years ago. Cashflow problems, incomplete installations, customers left hanging, the usual story. Utah wanted to pull their business license. So is this "Legends Solar" a reboot? The name is spelled a little differently.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#15

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

I strongly disagree. I would quite happy to invest a venture like if I was confident it would help us make a transition to renewable energy faster, even if the ROI was significantly worse on average than S&P. My concern is how do I know that buying solar panels with them will actually help to increase the percent of renewable energy being supplied by the grid. I don't want to just help some commercial investor who has built out a solar project recover the capital they've put into it unless they'll guarantee they are going to put that capital back into building more renewable generation.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#16

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

You can say that about any ESG investment, though.

Matt Levine writes about this sometimes. One possible justification to invest in ESG is that you believe that investments that are relatively good for the environment (or whatever) will beat the stock market. Another justification is that it makes the cost of raising funds cheaper for companies that are good for the environment and more expensive for companies that are worse for the environment.

According to the latter theory, if it's working, you should earn less than the S&P 500. If you're not earning less, you haven't lowered the cost of raising funds.

(On the other hand, if a company is advertising a niche investment to small investors, they probably have a cost of customer acquisition that's going to be cutting even more into investment returns? Isn't their cost of raising funds going to be pretty high?)

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#17

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

This sounds false. Couldn’t you make the same argument about the entire stock market?

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#18
I thought this was going to be about solar panels installed synergistically on food farms, running more efficiently because of the lower temperature, and increasing farm yield by reducing heat and water stress on the plants. (Most plants can turn only a fixed maximum of photons into sugar, daily, easily exceeded in an hour or three of full sun, with exposure after just endured.)

There is a clever form of this where the panels are mounted vertically in fencerows running north-south. The "bifacial" panels collect both morning and afternoon sun, with room between for a tractor.

Another form is to mount the panels horizontally directly above the plants, so they get sun only in morning and afternoon, and are protected from harshest noon light, and also freak hailstorms. The panels are cantilevered out from both sides of fenceposts running down a row, with the tractor driving in space between rows and running its attachments under.

In pasture you can do whatever is cheap, so long as the herd can get to grass under them. The herd might also do better with less exposure, and they keep the weeds down.

Usually there is a little less room for the plants, per acre, but possibly higher yield anyway, and the field produces saleable power year round. The panels are not as close together as in a dedicated solar farm, but dual-use land is free, so there is no need to scrimp.

It is easy to find loud complaints in England about farms that have converted 100% to solar because it makes the farmer more money than actually farming. This seems like a good compromise.

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#19

The math here is pretty straightforward, however, it doesn't look like all of the components necessary to do the math are available. 1. How long do I "own a solar panel"? Indefinitely? 2. What is the wattage of the solar panel and where is it located? i.e. what wattage will it produce consistently YoY? What power market? 3. What percentage fees does Legends take? Frankly, #1 is the most important factor here by a lon…

gonna pile on here so it's easy for OP to answer.

4. What contracts are in place to maintain the panel, and lease the space? What happens if the building decides to discontinue service. Will the solar panel be delivered to me (at what fee?) will the solar panel be re-placed on top of another building? (at what fee?)

5. are the devices insured against common forms of damage? (wind, hail, acts of humankind)

6. Can we implement at "DRIP" style reinvestment program where our ROI just funnels back into more?

Re: Legends Solar – Buy operating solar panels on commercial solar farms

#20

At the end of the day, it all comes down to ROI. If this had a good ROI, it probably already attracted enough investors without needing to create such a investment product. If not, then I might as well buy SP500.

The return, for some people, will be more than the just the money though (because they'll attribute some value to the green aspect). For them it doesn't necessarily have to beat the SP500. The sum of the money earned and their perceived green value will likely have to exceed it, I agree.
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