Solar Income Fund Inc.

Solar Income Fund Inc.

October 06, 2009 11:24 ET

Selling Solar Energy Into the Utility Grid Outperforms Most Other Socially Responsible Investments

- Solar energy & government backed feed-in tariffs make a lucrative combination -

TORONTO, ONTARIO--(Marketwire - Oct. 6, 2009) - Canadian investors who have turned away from socially responsible and green investments due to their lack lustre performance should think twice before giving up on Green Capitalism. More specifically, direct ownership of profits from selling solar energy into the utility grid, backed by government guarantees, has outperformed the majority of socially responsible and green investment funds. This direct ownership is a staple for European investors due to its stability and consistent returns.

"Canadians realize that many of the socially responsible and green investments, in the public markets, have not performed as expected," says Paul Ghezzi, Managing Director of the Solar Income Fund LP. "They are not a comparable investment product to a structured green energy income fund. The Solar Income Fund offers Canadian investors the opportunity to participate in the German solar energy power generation market, which has consistently produced returns in the range of 10-12% per annum."

The majority of socially responsible investment funds have struggled to perform as well as the broader stock market. While investors feel 'good' about the social benefits of these investments, the returns have also caused them to pause. Publicly listed equities, funds and ETF's as well as social indexes, all of which might meet a set of broadly based environmental, social and governance criteria, have nevertheless failed to meet investors expectations on desired returns. For instance, a number of clean energy exchange traded funds are down some 25% from their recent highs. This is a comparable return to the broader Canadian stock market with similar volatility.

"Investors who want to be green and socially responsible now know that stock market risk is essentially the same for the socially responsible and green sector as it is for the entire stock market," continues Paul Ghezzi. "That's why having a portion of your portfolio in direct ownership of green energy power generation assets is so compelling. You are diversifying outside of the stock market and generating absolute returns."

According to independent research by PiperJaffray, the solar energy power generation sector in Germany, is expected to generate returns of 13% to 15% in 2010. Germany is the global leader in solar energy power generation and supports the sector through Federal legislation that requires utilities to buy energy from power producers at above market rates with government guarantees and 20 year power purchase agreements. The German government's goal is to have approximately 40% of its energy come from renewable sources by the year 2030 and has become a model that many other countries are following.

About the Solar Income Fund

The Solar Income Fund LP (the "Fund") provides Canadian Accredited Investors with a unique opportunity to own secure and stable income generating investments in the Solar Photovoltaic ("solar PV") energy power generation sector. The fund is available through Offering Memorandum as well as through FundSERV Inc. enabling investors to purchase the fund through their advisors.

The Fund seeks to take advantage of the long term government-backed incentives, in the form of guaranteed energy feed-in tariffs and 20 year power purchase agreements.

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