What is Solar Power Crowdfunding?
Crowdfunding is by definition, “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.” Each campaign is set for a goal amount of money and a fixed number of days. Once the project is launched, each day will be counted down and the money raised will be tallied up for visitors to follow its success. Instead of traditional investors, crowdfunding campaigns are funded by the general public. Solar power crowdfunding campaigns are gaining traction and may allow companies to diversify and expand their capital sources – changing how renewable energy is financed. Thanks to a number of new clean energy crowdfunding websites, anyone can participate in the solar energy transformation by investing in solar projects. Some investment platforms even offer returns on investment (according to energydigital.com, they’re seeing an average of 6% ROI), making it a smart way to earn green by going green as they seek out renewable energy projects to invest in.
How to Get Involved in Solar Power Crowdfunding
It’s a simple platform concept that can reach just about anyone with basic internet access using companies such as Mosaic. Mosaic is a solar project finance company based in Oakland, California. Founded in 2010, Mosaic enables solar power crowdfunding of loans for solar development projects. Through this model, the company aims to democratize the social and environmental benefits of clean energy. Mosaic is changing the way solar in the U.S. gets financed. The company’s solar power crowdfunding platform allows both accredited and non-accredited investors to finance small-scale solar projects across the U.S. Currently Mosaic’s investments are limited to residents of California or accredited investors who are residents of the United States. Billy Parish, Mosaic’s cofounder and president tells Forbes.com, “One of the fastest ways to build the clean energy economy is to allow more people to benefit from it.” According to their website, $9,524,900 have been invested and 18,292,989 kwh of energy have been generated. Though, because of unclear crowdfunding investment laws, companies are trying to navigate the grey areas through experimentation.
How Solar Power Crowdfunding Works
Mosaic connects high quality borrowers who are going solar with qualified investors. The borrower gets clean energy and saves money on their utility bills. The investors get paid back with interest. Investors can easily reinvest payments or transfer them to their bank accounts. Through these projects, the Mosaic community has placed solar panels on bee farms, charter schools, convention centers, and military housing across the country. One of the advantages of solar power crowdfunding is that it can create opportunities for new categories of investors to participate in the solar market as they’re helping reduce carbon emissions. Since the investment of solar power can initially be costly, solar power crowdfunding can help to make it affordable and spread the sunshine!