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EvoEnergy Highlights Benefits of Solar Investing for Retirement Income

Karen Henry

solar-invest-energy-manageNew research compiled by UK solar company EvoEnergy has shown how investing a lump sum in solar or renewable investments rather than an existing pension plan can deliver double-digit returns for private investors in their retirement.

EvoEnergy compared the estimated returns that could be achieved over 20 years through investing $9,202 in either solar panels, ‘debentures’ for renewables projects or a typical managed pension fund.

The results showed that domestic solar could deliver annual returns of more than 10 percent for the duration of the Feed-in Tariff (FiT), while a typical managed pension fund could be expected to grow by 6 percent per year over the same period after charges.

Those choosing to invest in certain larger renewables projects through a debentures-type scheme, meanwhile, could achieve yearly returns as high as 8 percent.

EvoEnergy said that while pensions come with the extra benefit of government tax relief, the difference in annual returns between PV and a pension from the same initial investment shows why solar investing should be seen as a serious addition for investors looking to diversify their existing retirement portfolios.

Aside from domestic solar, another such opportunity could be through alternative debenture investments with companies like Abundance Generation, which allows private investors with a lump sum to invest directly into larger renewable projects that support local communities.

EvoEnergy compiled the figures after the Minister for Climate Change claimed that solar could deliver better returns than a pension.

Image via Shutterstock



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