As an entrepreneur in the telecommunications infrastructure industry during the 2008 financial crisis, I learned that infrastructure is a safe business to be in during an economic downturn. That’s because infrastructure projects are long-term investments that have innate value and can survive the vagaries of financial markets.
I’ve since applied that lesson to my work in the clean energy industry by establishing a solar mortgage real estate investment trust (REIT) in which solar projects are financed as infrastructure. Aligning loans with solar’s long-term characteristics reduces the cost of financing and allows public and private entities the ability to invest in solar projects.
Given the ever-growing need to deploy solar energy to meet climate goals, access to capital is paramount. Investing in clean energy resources, even during a global crisis, is an important step in helping to mitigate another looming threat: climate change. Investors can remove financial barriers to solar’s growth and enable the industry to pave the way for a “green recovery” while simultaneously achieving steady, long-term returns.