Crowdfunding may be coming to alternative energyAugust 28, 2012
Crowdfunding proves to be a viable way to fund projects
Crowdfunding has become a popular tactic for many companies interested in introducing new technologies or products without having to rely on private investments from larger companies or taking out a loan. The concept is relatively simple: Encourage consumers to fund a project by providing them with an assortment of incentives for doing so. Crowdfunding has shown itself to be a viable way to drastically cut the costs of a project, if said project is capable of garnering a significant amount of support from consumers. Now, crowdfunding may be making its way into the world of alternative energy.
Alternative energy projects may soon tap consumers for investments
Platforms like Kickstarter and IndieGoGo have brought crowdfunding to the gaming and entertainment industries and have shown that consumers are willing to fund the projects they believe in. These two platforms have brought several projects from the conceptual stage into reality and similar platforms in the alternative energy sector could do the same. Crowdfunding has begun gaining the attention of social entrepreneurs and large companies with ambitious alternative energy plans.
New alternative energy crowdfunding platforms emerging
Platforms like SolarMosiac, a crowdfunding site concentrating on solar energy, are beginning to emerge and promote alternative energy projects around the world. These platforms may be successful in generating the funds that these alternative energy projects need to succeed. Because government and other organizations have shown hesitant support for alternative energy, companies attempting to bring clean power to the public are beginning to turn to those they know will help: Consumers.
Crowdfunding may solve financial troubles
Crowdfunding may be the solution to the financial problems many alternative energy projects face today. These projects are often delayed or put on indefinite hold because they are unable to acquire the financial support they need to thrive. Through crowdfunding platforms, consumers are able to invest any amount of money they want into these projects and receive something in return, which can take the form of a simple appreciation letter to a golden placard; anything an alternative energy company considers decent for the investment provided.
Related article(s) and resources: