Regulatory changes to the Securities Act in 2016 enabled crowdinvesting, an idea that can usher in a new era of inclusive project finance, ripe to transform the clean energy industry. We need to envision a democratized clean energy future, with renewable energy and climate solution projects originated and owned by the communities that use them.
Nonprofits face a unique challenge in the solar-development market. According to a report by Smart Electric Power Alliance, the demand for community-shared solar is soaring, but supply cannot catch up due to a lack of financing options.
How can alternative financing solutions help expand clean energy through capital markets? Industry experts convened at this year’s Asset-Backed Securities (ABS) East conference in Miami on Sept. 20-23 to discuss these possibilities. Yieldcos, crowdfunding or peer-to-peer (p2p) markets, and property-assessed clean energy (
) financing could supplement the role of securitization and may deliver the capital the renewable energy industry demands.
Crowdfunding solar power allows companies to diversify and expand their capital sources but requires careful risk management, according to a panel called "Crowdfunding for Renewable Energy Projects: How Big Could It Be?" at the Bloomberg New Energy Finance Future of Energy Summit on April 8.