POSTED
October 6, 2023
5 Reasons Accredited Investors Are Hesitant to Fund Renewable Energy Development
While the benefits of renewable energy development have never been more exciting and full of urgency, growth, and potential, we recognize that the journey toward a more clean and sustainable future has barriers for accredited investors like you. In this article we look at the issues that may be hindering your financial backing for renewable […]
While the benefits of renewable energy development have never been more exciting and full of urgency, growth, and potential, we recognize that the journey toward a more clean and sustainable future has barriers for accredited investors like you.
In this article we look at the issues that may be hindering your financial backing for renewable energy development.
1. Uncertainty in Government Policies and Regulations
Policies and government change routinely, and the potential for significant changes in renewable energy laws is significant. You may feel like investing is playing a game without knowing all the rules of the incentives, subsidies, and benefits that might come with it.
2. Market Volatility and Risk Perception
Imagine you are preparing to build a giant treehouse. You buy all the wood and nails and painstakingly craft the treehouse—only for your kids to ignore it. It costs you money and time, and then sits unused.
The tree house analogy is similar to developing clean energy through solar. Significant sums of money are required upfront, and it can be a long time until any of it comes back to you. As an accredited investor, you may hesitate because of the time it takes to get a return. However, unlike treehouses, clean energy projects will not be ignored once they are built!
3. Lack of Standardization and Transparency
Carrying on with the game analogy from the first point, it can be tough to figure out which game is the best for you to buy into—which has the best rules and the most likely favorable outcome.
Solar projects all operate by different rules and measures of success. It can be difficult to figure out what the standards are for your project. It would be much easier if there were transparent and fair rules for measuring the success of these projects and investing without fear. Because of this, you must investigate and learn the details about your selected clean energy projects so that you can feel confident about investing your wealth.
4. Limited Investment Opportunities
Sometimes finding solar projects to support can feel impossible. Some of them, like solar farm development, require large amounts of money to get started! In fact, only accredited investors can invest in them because they require so much cash. This leaves fewer renewable energy investment options for investors who have less to work with.
However, as renewable energy continues to become popular and necessary, there will easily be many more ways for all kinds of investors to support these projects.
5. Technology and Infrastructure Risks
New and evolving energy technologies may make you feel uneasy about investing. How can you know if the newest technologies will continue to be efficient on a large scale for the years to come? You can be reassured that new technologies will grow increasingly reliable as they continue to be used and improved.
Summit Power Fund helps eliminate renewable energy development risk
Let us reassure you—if you are feeling uneasy about investing because of any of these five reasons, you can reduce risk and join the change now by investing in a model that has been proven. You also can help the market break through these barriers!
Consider investing in our Summit Power Fund. We help you invest directly into solar projects that are actively improving the environment, all while receiving (as our investors currently are) a 30% IRR within five years. Contact us or watch our informational webinar to get started.