Practical guide · General Questions · Basic level · 6 min read ·
How can I invest in solar energy if I don't have a roof?
You don't need your own roof to take part in solar energy. You can become a shareholder of the company that owns a system installed on a business's roof or as a plant on a plot of land. That system sells its energy under a long-term contract, and the company's results depend on the energy it produces and on the client paying.
In 30 seconds
- You participate in the company that owns the system, not in panels on your home.
- Income comes from selling energy under long-term contracts.
- Results depend on sunshine, equipment, the client and the contract term.
Before you start
A solar project is measured in years, not months. Before participating, it helps to be clear on three things about your own money and about how this kind of asset works.
- That this is money you won't need soon: a solar system runs for 10 to 25 years and your participation's liquidity is low.
- That you understand where income comes from: a client who buys the energy under a contract, as in a PPA.
- That output varies: some months are sunnier than others, and equipment loses a little performance over the years.
- That you already have an emergency cushion. If you're not sure where you stand, the free financial check-up helps you see it.
Step by step
- 1
Understand the two models
In a PPA, the system sits on a client's roof, such as a business, and that client buys the energy it uses at an agreed rate for 10 to 20 years. In a solar farm, the plant sits on its own land and sells its energy to one or more buyers, usually also under a long-term supply contract (PPA). The guide how solar energy works in Colombia explains the options in more detail.
- 2
Know who owns the system
Each project has its own company, an SPV, which owns the panels and signs the contracts. You don't buy panels: you subscribe shares in that company and are recorded in its shareholder registry.
- 3
Look at the available projects
At Circular Urban, for example, Solar Subway La Pintada is a 33.8 kWp system on a store in La Pintada, Antioquia, with a 10 to 15 year PPA, and it is at the place-reservation stage. La Caucana Solar Farm is a 1.48 MW plant with its land included, which sells its energy under a PPA at an indexed rate; participations aren't on sale yet.
- 4
Read the project sheet and documents
The project sheet shows the installed capacity, the energy sales contract, operating costs and the main risks. Also read the risk disclosure statement before signing.
- 5
Choose your amount and reserve your place
The minimum amount varies by project and appears on its page. If a project hasn't opened yet, use the «I'm interested» button and leave your details so we let you know when the round opens.
- 6
Follow it over time
Once you participate, you see your participation in Your portfolio, along with the project's reports on production and operating results.
An example
As an illustration, unrelated to any project: Laura rents an apartment, so she can't install panels. She decides to participate with a small amount in a PPA system installed at a business.
| Where the panels are | On the client business's roof |
|---|---|
| Who owns the system | The project company |
| What Laura holds | Shares in that company |
| Where income comes from | The energy the client buys |
| What Laura receives | Her share of results, based on performance |
Laura takes part in solar energy without a roof or installing anything. Her result depends on the system producing and the client honouring the contract, not on the sun reaching her window.
Questions you'll have
Do I need to own a house to take part in solar energy?
No. In this model you participate in the company that owns the system, which sits on a client's roof or on a plot of land. That's why it works for people who rent, live in an apartment with no roof access or in a city with little space. If you do have a roof and want to lower your own bill, that's a different path: self-generation.
Where does a solar project's income come from?
From selling the energy it produces. In a PPA, the client pays each month for the solar energy it uses at an agreed rate, usually below the grid's. Operating and maintenance costs come out of that income, and what's left is the company's result, shared among shareholders under its bylaws.
What happens on cloudy days?
The system produces less, and that's already in the numbers: projects are modelled on the site's average solar radiation, rainy seasons included. Even so, a year with less sun than usual produces less energy and less income. It's one of the risks listed on each project's page.
How long does a participation in a solar project last?
It depends on the contract. For Solar Subway La Pintada, the PPA runs 10, 12 or 15 years, and when it ends the system passes to the client. Panels usually run 25 years or more. Think of this kind of project as long term.
Can I leave before the contract ends?
Your participation isn't traded on an exchange. If you need to leave early, you can transfer your shares to someone else on the terms the company's bylaws set, but no buyer or timing is assured. That's why it makes sense to participate with money you won't need soon.
What's the difference between a rooftop system and a solar farm?
Both can sell their energy under a PPA; what changes is where the system sits. In a rooftop system, such as Solar Subway La Pintada, the panels are on the premises of the client buying the energy. In a solar farm, such as La Caucana, the plant sits on its own land and sells its energy under a supply contract (PPA) at an indexed rate that adjusts every year. In both cases, the result depends on how much energy the system produces, the agreed rate and the buyer honouring the contract.
Common mistakes
- Myth
To invest in solar energy I have to install panels at home.
- In reality
You can participate in the company that owns a system installed elsewhere. The solar energy guides explain both paths.
- Myth
Since the sun rises every day, income is always the same.
- In reality
Output changes with the weather, equipment loses performance over the years and income depends on the client paying. Results are subject to project performance.
- Myth
A solar project can be sold whenever I want, like a listed share.
- In reality
It's a private, low-liquidity participation. Leaving early depends on another shareholder wanting to buy.
Your first step
Look at a real solar project
Check the page for Solar Subway La Pintada: it shows how the contract works, how much energy the system produces and what risks it carries, at your own pace and with no commitment.
See solar projectsKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
