Beyond the Arches #7: Cleantech is poised to soar
Cleantech is booming – here’s how to use private markets to invest in the asset class.
Earlier this year, the federal government bet big on cleantech, and it seems to be paying dividends already. Amid worries of a potential recession, industries rooted in/adjacent to renewables have gotten a boost from the 2022 Inflation Reduction Act, which intends to boost renewables investment to nearly $114B by 2031 through various tax incentives and subsidies.
Another factor behind this investment push is the fact that the U.S. lags behind a number of other developed nations when it comes to renewables. Germany and Canada, as well as China, a major geopolitical rival, have all substantially outpaced the U.S. in renewable energy generation.
So far, the strategy seems to be working – and working well, as both domestic and foreign investors are taking note. Since the passage of the Inflation Reduction Act, which came on the heels of the CHIPS and Science Act, cleantech investments have crossed the $200 billion mark.
Companies are now looking to the U.S. as a promising center for cleantech manufacturing and development, triggering what amounts to an incentives war between the states as each region looks to win the most lucrative projects. This is great news for the jobs sector, as it’s estimated that more than 500,000 workers will be needed to meet demand in 2023.
Direct investment opportunities
As cleantech is on the rise, so are opportunities for retail investors to get in on the ground floor of the sector. Here are some direct investment opportunities in cleantech that you can leverage right now:
- Flower Turbines
By combining technology, sustainability, and art, Flower Turbines has developed an innovative vertical axis wind turbine called the “Tulip.” Resembling its floral namesake, the Tulip is smaller, quieter, and, more attractive than traditional turbines. It’s also safer for birds and highly efficient, generating power in both low- and high-wind environments. Flower Turbines’ Reg A+ CF offering is live and available through StartEngine.
- Ecolution Power
By recouping consumed energy from moving vehicles, Ecolution Power has patented a new source of clean energy that aims to achieve near-net-zero carbon. Its patented Module Active Response System (MARS) enables heavy-duty trailers, freight and light rail trains, and subway cars to generate clean, sustainable, and cost-effective energy while in motion. Ecolution Power is currently driving its trailer prototype in Greenville, South Carolina, and its Reg CF offering is available on StartEngine.
With smart homes designed to be 86 percent more energy efficient than typical resale homes, ZenniHome is out to revolutionize the housing market. Units are 100 percent steel-framed and can be stacked five stories high, with robotic furniture that removes the need for fixed floor plans. The company has already raised $6M in a seed round led by Caliber, one of the largest Opportunity Zone funds in the United States, and has 40K “soft orders” for units pre-launch. ZenniHome is currently offering a crowdfunding round through Wefunder.
STR Investment Opportunities
Short-term rentals (STRs) are a flexible and often lucrative way to add real estate to your investment portfolio. Check out these opportunities, courtesy of our friends at The Offer Sheet.
A lakeview hideaway in northern Georgia
206 Cindy Ln., Ellijay, Georgia 30540 | $429,900
Located in Carters Lake Estates on all paved roads and an easy drive to Ellijay or I-75, this two-bedroom/two-bathroom home is currently a successful vacation rental that’s loaded with character and charm.
- Average daily rate: $313
- Expected occupancy rate: 58%
- Monthly expected income: $5,522
- Monthly expected expenses: $3,784
- Monthly expected cash flow: $1,738
- Expected cash on cash return: 17.3%
Million-dollar mountaintop views in Pennsylvania
This three-bedroom/two-bathroom board and batten home on 5.7 acres offers a new luxury kitchen and panoramic views that can be enjoyed from the second-floor balcony or front and back covered porches.
- Average daily rate: $341
- Expected occupancy rate: 60%
- Monthly expected income: $6,223
- Monthly expected expenses: $4,501
- Monthly expected cash flow: $1,722
- Expected cash on cash return: 15.7%
An A-frame ski retreat in the Catskills
Set on a private 5.5-acre lot, this two-bedroom/one-bathroom four-season home with a loft is a true mountain getaway just minutes from Windham and Hunter Mountains.
- Average daily rate: $209
- Expected occupancy rate: 71%
- Monthly expected income: $4,514
- Monthly expected expenses: $2,926
- Monthly expected cash flow: $1,588
- Expected cash on cash return: 23%
A charming cabin in the Blue Ridge Mountains
This home features two bedrooms and one bathroom on the main level with 756 square feet of living space, plus an additional bonus one-bedroom/one-bathroom space on the lower level with its own private entry.
- Average daily rate: $251
- Expected occupancy rate: 64%
- Monthly expected income: $4,886
- Monthly expected expenses: $2,993
- Monthly expected cash flow: $1,893
- Expected cash on cash return: 25.8%
SMB Investment Opportunities
Courtesy of our friends at SMB Deal Hunter
Innovative mobile cardiac imaging company in Alachua County, Florida
This mobile cardiac imaging company offers diagnostic services set up in specially designed trucks or vans that can travel to such locations as patients’ homes, community health centers, clinics, and hospitals. If you’re interested in the healthcare sector, this is a business with strong EBITDA margins (25%) and is selling for a reasonable price. | View listing
- Asking price: $2,700,000
- EBITDA: $668,000
- Revenue: $1,450,000
- Established: 2001
Recession-resilient disposal hauling trucking company in Nevada
The disposal hauling industry entails recurring revenue and contracts since businesses and households need regular waste disposal services. This specific business, which specializes in business, municipal, and construction disposal, is reasonably priced and comes with newer equipment valued at $800,000 along with a team of experienced drivers. | View listing
- Asking price: $2,600,000
- Cash flow: $1,147,272
- Revenue: $4,269,700
- Established: 2004
Patented outdoor drainage brand with e-commerce flexibility
This company sells a proprietary line of outdoor plastic drainage products, along with stainless-steel linear bathroom drains. It has 250 patent-protected and trademarked SKUs with a very impressive AOV of between $150 and $400. Along with selling DTC on its website and on Amazon, the brand distributes in Home Depot and Lowes, which speaks to its product quality and reputation. | View listing
- Asking price: $2,200,000
- Cash flow: $495,241
- Revenue: $1,472,472
- Established: 2018
Highly profitable marketing, print, & direct mail business in Baltimore, Maryland
This Minuteman Press franchise has been family owned and operated for more than 40 years. Its owner is retiring, and the business is selling at a very attractive multiple of 1.8x its annual cash flow. Its specialty is designing and printing postcards, business cards, flyers, mailers, signs, promotional products, etc. | View listing
- Asking price: $1,300,000
- Cash flow: $728,738
- Revenue: N/A
- Established: 1979
Franchise Investment Opportunities
A selection of franchises you can invest in right now
Highly profitable massage & facial franchise in Houston, Texas
This franchise is a one-stop shop for massages, facials, hair removal, and (soon) body sculpting. This particular location is continuously innovating and working with its franchisees to ensure growth and the introduction of profitable new services. There are also strong retail sales at the business that make up 6% of total revenue, with top brands like Dermalogica, ClarityRx, and m. greengrass available for purchase and used in services. | View listing
- Asking price: $1,450,000
- Cash flow: $429,801
- Revenue: $1,483,514
- Inventory: $35,000
- Rent: $7,046.52 per month
- Established: 2015
Coding school for kids in McLennan County, Texas
This franchise aims to teach children to create technology – not just play with it. At the core of the business is its custom Learning Programs, taught in regular weekly sessions, along with camps and on-site programs for elementary and middle schools. Each facility features four classrooms, a reception area, an office, and restrooms. The classrooms feature top-of-the-line Apple computers and PCs, as well as robotics, drones, 3D printers, and more. The manuals and personal/personnel training come with this business. | View listing
- Asking price: $347,00
- Cash flow: $78,485
- Revenue: $108,000
- Inventory: n/a
- Rent: $2,166 per month
- Established: 2022
Three laser/medical spa franchise units in Chicago
Natural Radiance has been in business since 2016 and the owner is looking for someone to take these three units to the next level. The units are located in Lincolnwood, Chicago North Side, and South Loop. The North Side location features two Candela lasers and generates approximately $500K per year. Income-generating rental space at the Lincolnwood location and an additional Revlite laser are included. | View listing
- Asking price: $1,500,000
- Cash flow: $250,000
- Revenue: $500,000
- Inventory: $80,000
- Rent: $2,000 per month
- Established: 2016