Now is the opportune moment for property investors to tap into an emerging high growth sector that will dominate the future, writes K.T. Cunningham (Asset manager, Investor, Entrepreneur, Author & Philanthropist).
With most car manufacturers set to bring electric vehicles (EVs) on to the global market in mass production for the modern consumer by 2011, many savvy property investors are positioning themselves for whopping returns that this emerging boom sector will bring. By developing re-charging point hubs to accommodate the demand for electricity refuelling sought from EVs, early investors are on to a winner. However, retrospectively, it was not long ago when electric car charging systems appeared to be a far fetched vision of the future, but today it is a reality.
In fact, EVs charging points already exist in various parts of central London, but are more prevalent in countries like USA, France, Japan and Australia to name a few places. Despite the slow adaptation by the U.K to welcome electric cars on our roads, charging points stations are now begging to expand beyond the M25 and with further incentives provided by the coalition government, we are certain to see these hubs cropping up all over the country in the near future.
Industry analysts are forecasting that there will be approximately 1.5 million EVs on the streets of the U.K. by 2020. Obviously, this is a minute achievement towards making the road pollution free and replacing the 27 million fossil fuel powered cars on our roads today. Nevertheless, realistically speaking, it will take decades to replaced petrol cars. However, consumer demand, government incentives and rising oil prices (resulting from a possible future oil crunch) will be the three key driving factors in determining how fast petrol cars are replaced by electric cars. Many industry insiders and business men believe that the world will run out oil soon, and now is the time to begin replacing it alternative energy sources. As a consequence, the roll out solar car parks across the country is a one way of instilling confidence in car users to swopping their fossil fuel cars for a more eco-friendly version. Thus, the growing demand for solar car ports spells huge profits margins for providers of recharging stations. More to the point, it gives property investors the opportunity to enhance dying property assets (standalone car parks).
In other words, by property investors getting in pole position to exploit the fast growing eco-electricity revolution which has arisen out of the solar energy sector, owners of car parks car can transform such assets into charging hubs. Pension funds, private equity groups and big institutional investors are already queuing to add such potential cash-cows property asset to their portfolio. Solar car parks are traditional car parks covered by solar panels which generate eco-tricity to power electric cars whilst they are parked. Solar car parks produce three streams of revenue to investors/owners, namely, rental income, Feed In Tariff grants and parking fees. Below, are two types of solar-car-parks.
So, where there are parking lots, solar-electricity panels can be erected to recharge end users’ electric vehicles at a small cost, giving its owner additional income and stable cash flow. Today, supermarkets and cinemas are getting in on the action by converting their car parks into solar-electricity parking stations. According to one source, Asda intends to roll out solar car parks at all its supermarket over the next five years. In countries like France and USA solar car ports are appearing at airports, hospitals, shopping malls and other similar venues where people park their cars whilst attending to other matters.
Unlike other asset classes today, solar car parks rental yields are estimated to be averaging between 8% and 10.5% a month. These figures are achievable in the U.K., based on the returns solar car parks are already producing in countries like USA. It is anticipated that in the next five-ten years, solar power parks, (another name) will become goldmine property assets in the UK. Clearly, purchasing such assets in these times is an opportunity that investors should not miss out on. What's more, with prices starting from £120,000, backed by a 75% mortgage loan, plus a 25 years government guaranteed yield, this investment opportunity offers strong yield prospects. Note: The Feed In Tariff was launched by the UK Government in April 2010, which guarantees owners of green energy projects a rental income of a minimum of £900 for 25 years.
For more details on opportunties to invest in Solar Car Parks, email now.
