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Investment in solar parks is an investment and like all other investments is subject to certain risks.
Realization of earning forecasts: The forecasts are based on reports where the data was obtained in the past. Yields can vary each year and its possible that the long-term average yield could be lower or higher. Also, unforeseeable changes in the climate or the environment can lower or increase yields.
Completion risks: It may be possible that there are delays in the completion of construction. There may be delays in planning applications or permits. There is also the possibility that the deliveries of components from the manufactures are delayed. Delays of from one year to the next (i.e. completion in 2011 instead of in 2010) would result in lower feed-in tariffs which could be up to 2% lower. This however would be offset by lower module prices (approx. 3% lower).
Insurance: There is the risk that the insurance policy is terminated due to frequent claims. In addition the insurance premiums may increase more than initially planned over the term of the investment. Certain risks may be calculated at higher premiums or additional requirements are put in place. It may also occur that certain risks will no longer be covered. Changes in the business environment: During the live time of the solar power plant there can be unforeseen changes in economic, legal and fiscal conditions which may have adverse affect on revenues.
Restricted access to capital deployed: Solar Park investments are suitable for investors who wish to invest long term investment. Short term access to the capital deployed is not possible (although a secondary market is now emerging). Payments from the mains electricity provider are made either monthly or quarterly.
The EU's Policy
The Energy Providers
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