The financial crisis in Cyprus is benefiting Germany’s solar industry as investors look for a safe haven for their money.
Solar plants provide guaranteed returns in contrast to keeping their money in Cyprus banks, where they could be taxed on deposits over $128,000. The concern has spread beyond Cyprus to Europe as a whole.
Investors would rather put their money into material assets and Germany is benefiting because of its strong feed-in law. Other countries like Spain and Italy, which have pulled back on those laws, aren’t getting the same response.
German companies that connect investors with solar plant opportunities are seeing a spike in inquiries and sales, such as Milk the Sun GmbH and ProjectForum4t2, reports Bloomberg.
Referring to the rising interest in investing in US solar projects, "A solar power project with a long-term sales agreement could be viewed as a machine that generates revenue," says Marty Klepper, an attorney at Skadden Arps Slate Meagher & Flom. "It’s an attractive investment for any firm, not just those in energy."
Investors get reliable returns and four times what they can earn on US Treasuries when they put their money into solar plants.
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