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Utilization of Extra Cash
I have some extra cash. But the bank interest rate is low, and investment in real estate or stocks seems risky.
Can I expect a long-term, stable income without a huge investment using solar power systems?
Your capital requirement is only 20~30% of the initial investment for a solar farm.
You can take out a loan from a financial institution for a facility investment, minimizing the burden of expenses. In this case, you can apply for a loan amounting to 70~80% of the installation costs, thus, your capital requirement is only 20~30% of the initial investment.
For example, if you have a capital worth KRW 300 million
You can operate a 500kW solar farm and expected to generate KRW 10 million or above per month.
Of KRW 1,000 million (price for the land and the facility), you can take out a PF (project financing) loan amounting to KRW 700 million.
A 4% fixed rate and a regular method of payment is applied to the loan for 10~20 years.
Investment in solar farms is a long-term business, operated for 20~30 years.
With a relatively small investment, you can expect a stable income for a long time despite the current low interest rates.