Why Solar Energy

Sun is the energy
source of the future

According to several experts, solar energy is one of the winners in the race to supply CO2 neutral green energy. Solar energy is already the cheapest and cleanest form of energy in more than half of the world’s countries.

More and more studies are also showing that sustainable investment is doing better on returns and risk, than more traditional investments.

A green and sustainable market in growth

The global community has adopted common long-term goals for a sustainable energy supply, and the transition to fossil-free CO2-neutral and sustainable energy is picking up speed in these years.

We believe that solar energy will play an increasingly important role in this transition, and if you read reports from e.g. McKinsey & Company, solar energy is forecast over the next 30 years to play a crucial role in this transformation.

Nordic Solar, together with the shareholders, has a vision to contribute to this dramatic development and through the expansion of solar energy we wish to contribute to a healthier climate, environmental improvements and hopefully a better future for all.

Sustainable investments perform better

New research states that sustainable investments perform better on returns and risk than unsustainable investments.

According to a study, made by BankInvest, sustainable portfolios during the period 2007 to 2020 delivered an average return of 5.7%, while Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) had an average return of 4%. That is, the green portfolio has yielded an annual excess return of 1.7%.

In addition, the sustainable portfolio fluctuates one percentage point less than the global stock index, so while MSCI ACWI has an annual volatility of 17.8%., the sustainable portfolio fluctuates by only 16.8%.

What is an investment in solar energy?

When you invest in solar energy, you as a shareholder contribute in the long run to a better climate, as well as ensuring yourself a long-term and stable investment. Solar energy is the climate investment of the future and experts point out that global solar energy production is expected to increase by a factor of 60 by 2050.

Pressure from the public and the EU

The President of the European Commission, Ursula von der Leyen, states in her state of the union speech of 2020 that she and the Commission are aiming to increase the climate goal for 2030 from 40% today to at least 55% CO2 reduction.

In addition, she wants 37% of the funds from the EU’s new recovery fund to go to climate investments, corresponding to investments of EUR 265 billion.

At the same time as the global community has adopted a common long-term goal for sustainable energy, several sources report that the transition to renewable energy, combined with better energy efficiency, can generate up to 90% of the reduction of CO2 emissions. This is necessary to reach the global climate targets by 2050.

Frequently asked questions

How is growth and return the potential for one company?

Over the last 12-18 months, we have built up a large development portfolio of new projects in Denmark, Italy, Poland, Greece and Portugal with more on the way. These are projects that will be built over the next 1-5 years and will, if they all succeed, triple the company’s capacity up to 1 GWp. Construction in Poland and Portugal is in full swing.

During the period, we expect to be able to deliver between 7% and 11% in returns to the shareholders.*

*The scenario presented is an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product. Recommended holding periode is 20 years.

What have the historical returns been?

Since 2015 a share investment in Nordic Solar has given a stable average return of 9,3 %, annually.

Past performance does not predict future returns.

What is the minimum investment?

The minimum investment in Nordic Solar is EUR 100,000.

How is the share price calculated?

The price is calculated according to the same principle as the valuation of the individual solar park, so that the price at all times best reflects the fair value of the total portfolio of solar parks.

What is the leverage in the company?

The ratio of debt financing currently amounts to approx. 50% in Nordic Solar A/S. The loan financing is primarily taken out as fixed-rate, non-cancellable loans. In order to optimize returns for our shareholders, the goal is to have a slightly higher degree of loan financing.

What are the biggest risks when investing in solar energy?

Developments in electricity prices, inadequate due diligence or unrealistic budgets are among the most significant risk. Historically, many solar parks have been subsidized in the form of high settlement prices for electricity production. Any retroactive changes to these subsidies have been the biggest single risk. However, the market is moving very fast towards subsidy-free solar parks, where electricity now, in most countries, is sold on market terms, either from day to day or on longer more predictable contracts. In the future, the development in electricity prices will therefore pose an increasing risk.    

An investment in a solar park is largely based on assumptions and budget prerequisites, and deviations from these can affect future returns. The quality of these budgetary assumptions is thus significant for risk and return. The risk can be minimized through quality in both budgeting and calculation methods, combined with thorough technical, legal and financial pre-analyzes (due diligence).

When can i expect my money to be invested?

Usually between 2-5 months, sometimes even faster. Theoretically, it can take up to 12 months, but that is based on a very conservative assessment.  

Can you as a shareholder sell your shares, and what does it cost?

To the extent that the company in question has the liquidity to do so, a shareholder may, without notice* sell their shares back to the company, at the current monthly price less an administration fee of 1%.

Formally, both companies have a general meeting resolution that authorizes the board of directors to buy back shares. In short, the authorization is the option to buy back 10% of the equity to the extent that the company can find the necessary liquidity for it.

It has been agreed with the Board of Directors that Nordic Solar Energy has earmarked EUR 670,000 of a credit in the bank for a possible repurchase, a similar credit is expected to be established in Nordic Solar Global

*For tax purposes, shareholders who wish to sell their shares back to the company must obtain prior approval from SKAT.

What is the difference between investing with you, compared to your competitors?

Our customers praise us for a straightforward and transparent business model with a fair, market cost structure, where all significant decisions are made in accordance with shareholders’ wishes and the guidelines set by the Board of Directors. If you compare Nordic Solar with similar companies in the industry, it is especially on the cost side and the realistic estimates and assumptions that form the basis for each individual investment decision that shareholders highlight as decisive for their choice of partner.

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