This New Solar Investment Pays a 5.3% Yield
How to profit from solar projects without buying a single solar stock.
Solar stocks got a nice bump yesterday after news came out that Senate Republicans were looking to throw the U.S. solar industry a bone.
Following a steady decline in solar stock valuations after Trump’s “Big Beautiful Con Bill” indicated the termination of a 30% residential solar tax credit nine years ahead of its previously-scheduled expiration date, publicly-traded solar companies have had a hard time convincing investors to buy shares of their companies. Many of which rely heavily on those tax credits.
To be sure, investing in companies that are heavily affected by policy is rarely a good idea, unless you’re a cutthroat day trader or have enough cash to spend it like a drunken rapper on a video shoot.
Now as you know, I’ve been bullish on solar for two decades now. And that hasn’t changed. My strategy for investing in solar, however, has.
Years ago, I was all about solar stocks, and I helped a lot of people profit from some of the more successful players in the space, such as First Solar (NASDAQ: FSLR), Enphase (NASDAQ: ENPH) and SolarEdge (NASDAQ: SEDG). But these days, solar stocks have just become too risky for me. Especially with a sitting president seeming to hate solar energy more than actual nazis.
Of course, this doesn’t mean the global solar industry will come to a grinding halt anytime soon. Indeed, while the U.S. solar industry is on pins and needles right now - and often seems to be anytime there’s a Republican in the White House - the rest of the world continues to install solar power systems at a record pace.
In 2024, solar power represented 6.9% of global electricity generation. By 2040, it’ll clock in at around 20%. That represents a compound annual growth rate of 6.8%. That’s not trivial, and certainly there are companies, both public and private, that will benefit.
One of those companies is Energea. This is a company I told you about a couple of months ago. Here’s a link to that one if you want to check it out.
I’m definitely a big fan of Energea as it allows me to profit from the continued growth of solar, but without taking on the risk of owning solar stocks. The current investment I have with Energea has delivered an average yield of 5.6% over the past year. Not bad at all. And the term on this investment is 20 years. So by the time it cashes out, I’ll have more than enough money to cover all of my applesauce and boner pill needs.
Now I’m sharing this with you today because Energea just announced a new addition to its “Solar in the U.S.A.” portfolio. It’s called the Sandlot Solar Project, and it’s a 750 kW community solar project located in the town of Saugerties, New York.
The “Solar in the U.S.A.” portfolio has delivered an average dividend yield of 5.3% over the past year. I’m actually thinking about adding this one to my portfolio.
You can check out all of Energea’s solar projects here.
What I’m reading …
Solar Stocks Soar as GOP Mulls Changes to Tax Credits in Bill: https://www.bloomberg.com/news/articles/2025-06-24/solar-stocks-soar-as-gop-mulls-changes-to-tax-credits-in-bill
China breaks more records with surge in solar and wind power: https://www.theguardian.com/world/2025/jun/26/china-breaks-more-records-with-massive-build-up-of-wind-and-solar-power
Meta signs deals to source more solar, wind power for data centers: https://www.reuters.com/sustainability/invenergy-supply-meta-with-additional-791-mw-data-center-operations-2025-06-26/