Many solar facilities are very low-risk investments — some are even rated ‘investment grade, meaning that there is high confidence that the facility will perform as expected. Legends Solar investors should be aware of several risks that could impact the financial performance of their solar holdings. The following is a non-exhaustive list of the risks you may encounter.
The income your investment creates is partially dependent on the weather. If a month is unseasonably sunny and bright, your monthly dividend might exceed expectations. Conversely, overcast weather can lead to reduced financial performance.
Legends Solar farms are usually co-located on the site of the customer who is contracted to purchase the electricity the panels produce. Legends Solar works to ensure that the ‘power purchaser’ is creditworthy and unlikely to default on payments — for example, universities, hospitals, and regional utilities would make strong customer candidates.
In the event that a purchaser is unable to make payments on time, Legends Solar may negotiate a new contract with a ‘virtual PPA’ or take other measures to protect the investment.
While solar facilities are generally low-maintenance and often require no day-to-day upkeep, unexpected mechanical issues can occur. Depending on the warranty and insurance arrangements of each specific investment, maintenance costs may impact financial returns.
Though unlikely, it is possible that your solar investment may be damaged by storms, fires, or other natural disasters. Please refer to the prospectus of each individual investment to understand the insurance implications of this type of event.
Each solar farm Legends offers have different risk profiles. While we aim to offer an intuitive a streamlined investing experience, members should be aware of the particular arrangement of each facility. Review the prospectus of each investment available on Legends Solar to learn about the risks of each offering.