business plan for renewable energy

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How To Write a Renewable Energy Business Plan (Template, Sample)

NOV.07, 2022

Renewable energy business plan for starting your own business

Do you aspire to keep both your bank account and the environment happy? A renewable business may be the best choice for you, then. By launching it, you can generate profits while doing your bit for the planet.

A renewable energy enterprise supplies green and clean energy produced by solar, wind, or water resources. The business has immense potential especially due to the launch of B3W in near future.

To commence this business, you require a business plan for renewable energy that covers every aspect. For an insight into how to start an alternative energy company and how to document a perfect operational plan, you can read this article. In this blog, we have given a sample business plan for Clean Power, a startup based in Phoenix. Before entering the business world, it will be helpful to also read a business plan for investors.

Executive Summary

2.1 the business.

Clean Power is a renewable energy startup based in Phoenix. The company aims at offering clean and green energy solutions to households, institutes, companies, and manufacturing plants.

2.2 Management of renewable energy business

After you have developed an operational plan for starting a renewable energy business, you need to devise a strategy to manage it. Your management strategy should include planning about where to procure the equipment from, where to launch your plant, and how to manage the transitions from raw product to successful installation while remaining within your finances.

In this business plan for renewable energy projects we are documenting how to start a renewable company. We will include segments from business plan for banks to help you with the financial part.

Moreover, in this renewable energy business plan pdf, we’ll also jot down the staff and other requirements to run the company.

2.3 Customers of the renewable energy business

Customer groups may be diverse, based on your preferences. Those of Clean Power are:

• Industrial Complex
• Manufacturing Hubs

2.4 Business Target

The business targets of Clean Power are centered around environmental protection and customer satisfaction. They will be mentioned in the later sections. However, monetary goals are partially demonstrated here:

Company Summary

3.1 company owner.

Clean Power will be owned by Martha Ben. Martha is an Electrical Engineer. She has specialized in Energy Systems Engineering at the prestigious Massachusetts Institute in Amherst.

3.2 Why the renewable energy business is being started

Martha always wished to start a business in the engineering niche. Due to immense renewable energy business opportunities, she decided to go for it.

3.3 How the renewable energy business will be started

If you are worried about how to start a career in renewable energy, just follow these simple steps.

Step1: Create Business Plan for Renewable Energy Company

To initiate the launch, you need to make business plan renewable energy. For reference, you may use this renewable energy business plan template or solar energy business plan .

Step2: Acquire Resources

Subsequently, you are required to procure all the equipment that may be needed to generate renewable energy. You will need to hire the personnel and staff that can help you operate.

Step3: Make you Known

The next step is to advertise your venture and competitive advantage. You should be clear and concise about how you are different and better than your competitors. A good practice these days is to exploit online media, Google Ads, and websites to make you known to the public.

Step4: Manage Finances

As you are finished with devising a business plan, you need to start operating and managing the financial flows.

Services of renewable energy business

Services for startup renewable energy business must be decided as you explore how to get into renewable energy industry. Due to diverse business opportunities in renewable energy, you are fortunate to provide services in any niche. To decide on the services, you should study several renewable energy business plans and explore renewable energy business ideas from online companies.

Whatever services you decide for renewable energy for business, make sure to include all its aspects in your business plan template for renewable energy.

The services of Clean Power are:

• Manufacturing & Setting Up Solar Cells

Our basic service will be to manufacture solar panels, solar tiles, and solar cells to be installed in small and large spaces.

• Generating Hydra Power

We will develop optimized solutions to generate clean energy by exploiting water resources.

• Wind-Powered Projects

We will also establish and install wind power plants in the city outskirts.

• Installing Power Protection Systems

We will also set up power protection systems with relaying networks wherever we install the renewable energy setup.

Marketing Analysis of renewable energy business

There are many factors to be considered before establishing a business in renewable energy. First, you need to explore how to start a renewable energy business in a specific location. You need to check out for average income of people in your vicinity to know whether they would avail of renewable energy solutions or not.

All of this information can be summarized in the marketing analysis segment of your renewable energy business plan. You can further make sections for customer segments, market trends, and prevalent pricing strategies to have a clearer idea of renewable energy business opportunity in your area.

For developing a marketing analysis that considers all business opportunities renewable energy, an expert person who knows how to gather statistical data for secondary analysis is required. You may consider hiring a professional or if you want to do the task yourself, you should thoroughly study a renewable energy business plan sample. A good practice would be to also go through biotech startup business plans to have in-depth knowledge of the field.

5.1 Market Trends

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All the graphs related to renewable energy are seeing an upward trajectory. At present, the market size is $17 billion according to IBISWorld and the figure is expected to rise in the near future. Most of the solar, hydro, and wind power projects are expected to be assigned by the U.S. government in the wake of clean energy programs sought after by B3W countries.

5.2 Marketing Segmentation

In this renewable energy company business plan the market segments identified by Clean Power are given below. Since some of the segments also do overlap with those in gas station business plan and business plan for a biodiesel , you can take guidance from them as well.

5.2.1 Households

This segment is expected to make small purchases for mainly solar panels at us.

5.2.2 Industrial Complex

This segment will be making large purchases and they are expected to avail of all of our services including the installation of protection systems.

5.2.3 Institutes

Government and non-government institutions are expected to avail of our hydro, wind, and solar energy services. They might also hire us for installing power system installation systems for generation grids.

5.2.4 Manufacturing Hubs

This segment will form most of our customers. It is because manufacturers look for ways to optimize their operations even when the initial setup costs are high. They are also expected to avail of our power system protection services.

5.3 Business Target

• Maintaining a CSAT score above 90% throughout the service years.
• Capturing 25% of the market share within three years of operation.

5.4 Product Pricing

As per this solar farm business plan , Clean Power will keep its prices in the same range as the market average. However, certain discounts will be provided at the start to attract customers.

Marketing Strategy of renewable energy business

Though there are immense business opportunities in renewable energy, they can yield you profits only when you reach out to a maximum of customers.

A major challenge in renewable energy entrepreneurship is to convince people how renewable energy is ultimately going to save them money as the initial installation costs are high. Therefore, while you learn how to get into the renewable energy industry, you should also explore how to market renewable energy for businesses’ success.

In this blog on how to make a renewable energy project, we are providing the sales strategy developed by Clean Power.

6.1 Competitive Analysis

• Our employees are highly specialized and experts in their domains.
• We are offering several discounts, in the beginning, to get known.
• Customers are our topmost priority, we are willing to go to all lengths to facilitate them.

6.2 Sales Strategy

• We’ll offer a 50% discount to our first 50 customers.
• We’ll offer a 20% discount on all our services in the months of June and July.
• We’ll advertise our startup on social media, in local newspapers, and in magazines.
• We’ll hold seminars to elucidate the importance of climate conservation by turning to renewable energy.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of renewable energy business

If you have decided to build your own renewable energy source and help others in doing the same, you should go for planning about staffing requirements. The business renewable energy cannot be run without an expert, dedicated, and talented bunch of workers. You need to devise a criterion for employment and a policy to assign weightage to candidates’ test or interview scores, educational qualifications, experience, etc. to find the ideal one.

7.1 Company Staff

In this renewable energy business plan pdf, we are providing the list of company staff developed for Clean Power.

• 1 CEO to oversee all operations
• 1 Financial Manager
• 3 Electrical Engineers
• 1 Software Engineer
• 5 Electricians & Technical Assistants
• 1 Legal Expert
• 1 Web Developer & Graphic Designer

7.2  Average Salary of Employees

Financial plan of renewable energy business.

The costs incurred in running a renewable energy business are high. At the customer end as well, getting renewable energy setup installed is an expensive venture. The renewable energy suppliers must, therefore, develop a long-term financial plan. Individual financial strategies for each project will also be needed to demonstrate to the consumer how renewable energy is going to save them their dollars in the long run.

It is recommended to hire a professional financial analyst for developing an accurate financial plan. The professional expert in the field will ask you for your fundamental policies and monetary goals and develop a plan with accurate profit margins and loss assessment tables. In case you are looking for a renewable energy business for sale you may get a pre-developed financial plan for that business.

The financial plan of Clean Power is given below.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

All tables in PDF

• How do I start a renewable energy business?

To offer renewable energy service, you need to make renewable energy plan. If your business plan renewable energy covers all the aspects of your business, you are only left with the task of executing it. You need to procure the machinery, rent the space, and hire some engineers, technical assistants, and managers and you are good to go!

• Which renewable energy is profitable?

If you compare renewable energy sources, you can figure out that solar is the most profitable. It is because its scale can be minimized and extended without many constraints. In this business plan for renewable energy projects we have provided the unit sales and income generated from the solar products.

• How can I start a small energy company?

You can read the complete guide on starting a small energy company in this renewable energy company business plan. The steps would be the same except that your sphere of activity will be confined to a smaller area and your manufacturing scale may be lower than others.

• What is renewable energy in business?

In business, renewable energy is offering those resources to generate power that are never prone to depletion. As elucidated in this renewable energy business plan sample, the business includes designing customized solutions according to your consumer needs on a small and large scale.

• What are the 7 types of renewable resources?

The seven types of renewable resources are:

• Hydroelectric
• Who is the largest renewable energy company?

Tesla is the largest and most renowned renewable energy company in the United States.

• Is renewable energy profitable?

Yes! In the financial part of this renewable energy company business plan, you can see how much profits can be generated as per investment by launching this business. To ensure your business never runs into loss, you just need to make an accurate renewable energy business plan template.

• How do renewable energy companies make money?

Renewable energy companies make money by offering clean, green, and sustainable energy solutions to their customers. In this renewable energy business plan pdf, we have provided all stats for Clean Power for you to gauge how much revenue can be earned through it.

• How can I invest in renewable energy?

You can launch a franchise, start your own company, as well as invest in other startups by buying their shares or stocks. In this renewable energy business plan, you can see a stepwise guide for if you want to launch your own business.

Download Renewable Energy Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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• Career Advice

How to Become a Renewable Energy Entrepreneur

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

From photovoltaic solar panels to kinetic energy adapters that generate electricity from pedaling stationary bicycles, entrepreneurs are taking advantage of the green revolution by finding and marketing renewable energy solutions.

Since we use energy for almost everything, the recent trend towards greener, more sustainable technology is creating many opportunities for entrepreneurial-minded individuals.

But is this just a fad? Or are there viable business opportunities for the long term?

Key Takeaways

• Not every entrepreneur is an investor. Consider opportunities for green services.
• Focus on the industries you're most familiar with.
• Consider government financing sources.

Renewables Are Here to Stay

As the global population rises, the reality of finite resources is sinking in. Our energy requirements cannot depend on fossil fuels forever. Advances in technology have allowed us to tap into reserves that were inaccessible in the past, but that only delays the inevitable.

These concerns, along with the negative impacts of burning fossil fuels, have created an environmentally and socially conscious mindset among different sets of economic actors, including consumers, investors, corporations, and governments. Companies and investors looking for profits have taken advantage of consumer interest in cleaner energy alternatives and government-incentivized green business initiatives.

With all these factors driving the shift towards renewable energy, now is the time to start looking for opportunities to help solve the world’s energy problems and, perhaps, make money doing it.

Recognizing the Opportunity

There are innumerable opportunities for implementing an innovative renewable energy solution. However, the best place to start looking is in your own area of expertise. Think about the industries you’ve worked in and how renewable energy could benefit them.

Also, remember that becoming a renewable energy entrepreneur doesn’t mean you have to build your own wind farm or hydroelectric dam. Renewable energy is about more than just electricity generation. It is also about storage, conservation, and distribution.

Product or Service?

You also don’t need to invent a new product or technology. You can get involved in installation, repair and maintenance, or consulting.

Think broadly, and focus on your areas of expertise.

Finally, brainstorm with friends, family, and colleagues about things that people want or need.

Some people build a business around an idea and then try to sell that idea rather than building the business around something people already want to buy. Green consumers are no different.

Green Consumer Challenge

Despite all the hype about environmental sustainability, the evidence suggests that green consumers look for the same things most consumers want: individual benefit at a low cost.

Although the environmentally conscientious market, labeled LOHAS (Lifestyles of Health and Sustainability), is growing, the green market is still relatively niche. Marketing to everyone else means educating consumers on the advantages of renewable energy, including showing them how it can add value to their lives at a lower cost.

Beyond the LOHAS

Consumers are not the only group that one needs to consider when looking for the right opportunity. Think about how the product or service will affect or be affected by others, such as suppliers, the government, the competition, and financing organizations like banks.

All of these actors could have an impact on the success of your business, so it is helpful to think about the role they will play while you’re in the development stage .

Developing a Business Plan

In devising a business plan , it is helpful to determine if there are other businesses in other regions of the world that are already offering a similar product or service. Look at the fundamentals of those businesses and use them as models for developing your own plan.

The percentage of entrepreneurs who invest some personal savings in the early stages.

Regardless of how extensive you decide to make your business plan, you definitely need to do some initial market research and summarize a business concept. You will want to analyze costs, make revenue projections, and set out some key milestones for developing and launching your business.

Talk to Potential Customers

Remember to conduct interviews with potential customers in order to get a sense of the demand for your product or service and how best to introduce it to the market.

Also, contact suppliers to get price quotes on materials and services that you will need to manufacture your product or deliver your service.

Once you’ve completed your business plan, it is time to figure out how you are going to finance your business.

Financing Your Business

Every business succeeds or fails on the basis of its ability to sustain itself financially, but it could take some time before revenues are large enough to cover costs.

Although there are a number of financing options for new businesses and startups, the research shows that almost 90% of entrepreneurs invest some personal savings at the early stages of their business. And more than 74% said that personal savings were the primary source of initial financing. Using your own savings may also show other potential investors that you are serious about the future of your new venture.

The Options for Financing

Some entrepreneurs obtain financing from banks, venture capital , angel investors, or the government. The first two options may be harder to obtain in the early stages as they tend to demand to see an existing company with strong growth potential before forking over the money. Angel investors, those who offer new and fledgling businesses capital in exchange for equity, are also possible funding options, but tend to offer smaller amounts.

While it can take some time to receive approval and not all businesses are eligible, government funding could be a good way to go given the numerous incentives for cleaner, more sustainable technologies and services.

Visit the U.S. Department of Energy site for current energy efficiency and renewable energy funding opportunities and the National Renewable Energy Laboratory (NREL) site for renewable energy project financing information.

The Bottom Line

Once you’ve had an idea, made a plan, and figured out how to finance your business, you’re on your way to becoming a renewable energy entrepreneur.

But the work has just begun. Now you’re going to have to convince consumers to spend money on your product or service. This is not easy, but it can be rewarding, especially considering that you're sustaining not only your livelihood but that of people all over the world for generations to come. Renewable energy entrepreneurs may just save the planet yet.

RetailMeNot. " 4 in 5 Consumers Think Eco-Friendly Products Cost More 'Green .'"

Eric Koester. " Green Entrepreneur Handbook: The Guide to Building and Growing a Green Business ," Page 88. CRC Press, 2016.

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GreenBiz Evergreen

The business guide to green power: 12 ways to invest in renewable energy

PPAs, on-site renewable, RECs, virtual PPAs ... let's take a moment to demystify the ways businesses can invest in clean energy.

By Lauren Hepler & Sureya Melkonian

October 14, 2016

Our GreenBiz Evergreen column brings to light GreenBiz stories from the past that remain relevant today. If you scratch your chin over RECs and PPAs, this corporate renewables buying guide has been defining the details since it originally ran in November 2015.

Do you want those RECs bundled or unbundled? And will your PPA be physical or virtual? Have you even thought about the annual financial implications of the ITC?

For the uninitiated, the variety of ways companies can throw their weight into the market for renewable energy quickly starts to devolve into alphabet soup.

Still, with more companies setting sustainability targets or eyeing falling wind and solar costs with heightened interest, replicable models for businesses to invest in renewable energy projects are increasingly in demand.

The key thing for businesses is to figure out what they want to get out of it.

But we’re not talking about just any green energy certificate of participation. More businesses are focusing on the concept of "additionality," or making sure their money truly makes a dent in new renewable energy capacity — especially as the financial conditions for investment are also becoming more favorable.

"The landscape has changed a lot in the last two to four years," John Powers, vice president of business development for clean energy broker Renewable Choice Energy, told GreenBiz. "In certain regions of the U.S., it is cheaper to lock in long term agreements with fixed rates that are significantly less than what power trades for in those same markets."

As the American Council on Renewable Energy (ACORE) has illustrated , investment in clean energy takes on many forms and has increased at variable rates over the last decade.

Clean energy advocates have attempted to seize on an investment climate made more appealing with the example of highly visible companies executing multimillion-dollar deals, such as Walmart, Ikea, Apple and Google.

Activist groups such as Greenpeace , along with more business-friendly NGOs, such as the World Resources Institute , World Wildlife Fund and Rocky Mountain Institute , are increasing their calls for action. The new Clean Power Plan and upcoming COP21 United Nations climate talks add to the urgency, with groups such as  CDP , We Mean Business and the RE100 signing businesses up for clean energy commitments.

Still, realizing that there may be an opening to invest in clean energy isn’t the same as hammering out a coherent strategy on renewables.

For one, renewable energy deals that are becoming more popular in some states are impossible to replicate elsewhere due to the way power markets are regulated. Challenges such as sustainability budget constraints, limited manpower or unclear environmental commitments also can come into play.

"The key thing for businesses is to figure out what they want to get out of it," said Jennifer Martin, executive director of green power standard-setter the Center for Resource Solutions. "If you’re manufacturing consumer goods, you don’t want to have to develop a whole energy business."

For those interested in the marketing and reputational benefits of buying clean energy, "green tags" or credentials linked to carbon credits or offsets, could suffice. Those interested in reducing exposure to energy pricing volatility often commit to a long-term renewable energy procurement deal. Others are exploring the potential returns on clean energy equity investments.

"There’s definitely a growing sophistication among buyers of renewable energy," Powers said. "To respond to that, we need a growing sophistication in product offerings."

Green tags, Renewable Energy Certificates, Renewable Energy Credits, Renewable Electricity Credits, it’s all the same concept: ensuring that a company gets credit for supporting renewable energy.

Martin, whose nonprofit Center for Resource Solution sets the standards for what qualifies as a REC through its Green-e program , said that RECs serve as a paper trail for clean energy.

"RECs are really the accounting mechanism for tracking who uses renewable energy at the end of the day," she said. "No matter what kind of transaction you’re doing … the RECs need to flow from the generator to the end user."

In some states, many of them concentrated in New England, energy utilities face high   Renewable Portfolio Standards (RPS) that increase pressure to obtain renewable energy credits. While the supply of RECs has constricted in markets such as Massachusetts, with solar going for several hundred dollars per Megawatt hour (Mwh), states with either no standards or an excess supply of RECs have resulted in depressed prices.

No matter what kind of transaction you’re doing … the RECs need to flow from the generator to the end user.

The issue of additionality — that a project wouldn't be built without investment from a certain company — arises when the price of RECs drop so low that it becomes difficult to determine whether purchasing the credits actually will add to renewable energy capacity. In addition to the wide regional variation in pricing, Martin said that the debate over additionality can sometimes miss the point.

"What businesses want to do is be able to tell a story about renewable energy," she said. "What they’re trying to do is show that they made a difference."

Similar logic often extends to carbon offset projects designed to compensate for emissions.

"The business case for either buying RECs or offsets is because you want to make an environmental impact, or make certain claims that are important to you, your shareholders or your customers," Powers said.

Anyone that wants to claim that they are using green power, even in the case of a company that directly procures their own energy in the form of on-site systems such as rooftop solar, will involve a REC to document who is using the renewable power.

The pricing for RECs, however, can vary from less than $1 per Mwh to hundreds of dollars due to the regional supply and demand equation dictated by portfolio standards and clean energy supply. The reason RECs can get so competitive in markers with high portfolio standards is the specter of a compliance payment if the targets aren't met.

"They’re hugely variable by region," Martin said. "One of the things that is going to change the calculus is the new Clean Power Plan. It could be very beneficial for the state to increase the amount of renewable energy."

2. Unbundled RECs and REC swaps

One quirk of the REC system is that the credits can be traded. They are considered "unbundled" when the certificates are sold separately from the physical energy produced. For example, a company may want to buy energy from a remote solar farm, where the energy is sold to a third user or utility, with the company still claiming the RECs.

"Where unbundled RECs get criticism is in the argument around additionality," Powers said. Because a REC is about the intrinsic value of producing energy in a clean way (with negligible or no carbon emissions), they may be sourced from a large, long-established wind farm, as opposed to being financially additional to a brand-new power producer.

To this end, Martin noted that one element of green power guidelines in flux is "the new date," or how long renewable energy developments can be considered new enough to warrant credits. The current standard is 15 years, and the proportion of clean power required within a development also has been clarified over time.

3. Carbon offsets

On a fundamental level, carbon offsets are a way of paying for infrastructure projects that reduce net carbon emissions. They are useful because it is often impossible for a business to not produce any carbon, meaning that offsets are used to balance out greenhouse gas (GHG) impacts. 

A variety of offsets can mitigate GHGs, from planting trees that sequester carbon to corporate energy efficiency programs or preventative measures that generate varying degrees of controversy, such as flaring leaching methane gas from unregulated landfills.

Power purchasing

Buying renewable energy to power a corporate office is nowhere near as easy as picking a provider and signing a contract.

In deregulated energy markets, customers can buy retail wind or solar and slap it right on the company real estate. Or, they can sign a long-term deal to buy the power generated by an off-site renewable energy plant.

In regulated utility markets, things can get complicated fast. Deals are more theoretical and often rooted in hedging energy prices. The outcome of providing capital to finance new renewable energy capacity is the same.

"The corporate buyer — Google, Walmart, etc. — they’re providing that structured and guaranteed revenue for a long period of time that allows a bank to say ‘OK, I’ll loan you $200 million to build this thing,’" said Peter Mostow, an energy attorney with the law firm Wilson Sonsini Goodrich & Rosati.

The corporate buyer ... they’re providing that structured and guaranteed revenue for a long period of time that allows a bank to say ‘OK, I’ll loan you $200 million to build this thing.'

Still, the barriers to entry for various types of power purchasing remain high, feeding into interest in new forms of aggregated clean energy developments.

With all of these deal types, much bigger energy diplomacy concerns also come into play.

"This is really contentious territory," Mostow said. "You’re striking right at the heart of the utilities’ business models." 4. Physical PPAs

Say you're a company that wants to buy electricity generated at an off-site wind or solar farm to power a given real estate asset. If you're game for a 12-15 year commitment, a Power Purchase Agreement (PPA) could be your answer.

"A regular PPA, they never say it, but its sometimes called a 'physical delivery PPA,'" Mostow explained. “Electricity is actually being generated at point A, moved across the wires, and delivered at Point B."

(At least that's the idea logically speaking. As Mostow noted, "In reality, the electrons that are generated at a solar plant never actually go to the customer. The grid is a big giant balancing or accounting system.")

Regardless of where the electrons land, a company's commitment to buy power for a term usually longer than a decade helps a renewable energy developer and potential lenders ensure that there will be a buyer for their power.

5. Virtual PPAs

Physical PPAs can work in California or other deregulated energy markets, but they can't work in regulated markets with tight limitations on who is able to sell power.

As a workaround, companies, renewable energy developers and third party brokers have devised "virtual" or "synthetic" PPAs as a way to reap the financial and reputational benefits of PPAs — but without any power actually changing hands. While a company still powers its operations with grid-supplied electricity, both they and the developer benefit from a long-term fixed cost deal on energy generated from a project (which can be physically located anywhere).

Say the agreed-upon rate for a wind farm VPPA is $40 per megawatt. If the wholesale rate for energy generated by that project drops to $30 on a given day, the developer is buoyed by the extra $10 from the corporate buyer. But if grid prices spike and going rate for wind power jumps to $50, the scenario is reversed and the corporate buyer gets the extra $10.

"That $10 helps the corporate customer offset the utility bill that they're paying at their data center of wherever," Mostow said. "It's a hedge for them, too."

Powers adds that virtual PPAs also make sense strategically for businesses with a highly distributed power load, like a slew of retail stores, or if facilities are leased instead of owned.

6. Aggregated purchases

One obvious pitfall for PPAs is the high financial barrier to entry, with utility-scale renewable energy developments usually carrying a price tag well into nine figures. If that's out of the question at any one company, what about pooling resources in an aggregated or syndicate-style deal?

"Think about it as getting people together and buying in bulk together," Powers said.

While hammering out a deal with five equal parties is possible in theory, he noted that coordination can be difficult because "this is a CFO-level decision at every company that’s making it." Alternatively, having an "anchor" company — or one company willing to take on the bulk of the investment and then sell off smaller stakes as PPAs — also could work.

7. On-site power While PPAs deal with utility-scale solar, corporate customers operating in deregulated markets also have the option of buying or leasing a renewable energy generation system (often solar) for on-site use. Adobe, Coca-Cola, Google, Kaiser Permanente and Kohl's are among those pursuing these arrangements.

"On the on-site solar side, the commercial and industrial segment has been a bit underserved," said Hervé Touati, managing director of RMI's Business Renewables Center. "It has not seen the same growth as the utility segment or the residential segment. I think that will be corrected."

Equity investment

As with most emerging markets, the evolution of clean energy has brought with it more variation in the financial maneuvers that companies and investors seek out to make money on a trend.

One of those avenues is equity investments — a tack taken by companies including Ikea and Google, Touati said — which vary in structure but share a common emphasis.

Energy is not a high margin business. It’s an infrastructure business.

"There are few companies that have done investments," Touati said, which differs significantly from actually buying renewable power. "One is about making money off investments, and the other is about procuring green energy."

Uncertain returns, however, can be a dealbreaker.

"The thing about energy as an investment is that energy is not a high-margin business. It’s an infrastructure business," Mostow said. "I’ve seen a lot of my corporate clients look at maybe we should just be equity investors. It doesn’t usually meet their hurdle for investment."

8. Venture capital, private equity or stock purchases

More direct is the option for various investors or corporates with available capital to invest in privately held clean energy companies (a $5 billion market as of 2014, according to ACORE), or to buy stock in those that already have gone public (an $18.7 billion segment last year).

At the project level, another option is to be a stock or equity investor in a solar or wind farm.

9. Tax incentives

One key variable in the case for renewable energy equity investment is the federal Investment Tax Credit (ITC) currently offered to renewable energy project owners and investors.

The catch: With the 2006-era policy set to expire for residential solar in December and the commercial credit slated to drop from 30 percent to 10 percent, uncertainty about the future of this revenue mechanism is starting to loom larger.

10. YieldCos

In the lexicon of green energy, public entities created to own renewable power projects and deliver returns in the form of dividends — a class known as YieldCos — have started to come on strong in recent years with larger renewable energy companies such as SunEdison. The new packaging of clean energy investments isn’t coming without growing pains, however, and has in some ways lumped renewables into broader volatility.

"Investors have stepped up to finance a host of energy-related products in recent years, contributing to a glut in supply that has spurred a dramatic collapse in commodities prices," Bloomberg recently reported . "That's helping to fuel additional market scrutiny of commodities' players — from giants such as Glencore to U.S. shale explorers and even solar panel operators."

11. Green bonds

On the lower-risk end of the spectrum, green bonds — or government bonds tied to projects designed to combat climate change — are an area that clean energy advocates have been hopefully watching for years.

Often pitched as a way for smaller investors to contribute to daunting infrastructure financing, the market is expected to exceed $60 billion. Up next: settling on what really counts as green infrastructure and testing investors’ appetites for continuing to grow the market.

12. Securities, mutual funds and beyond

While equity investments are more universally understood financial arrangements, more esoteric mechanisms associated with Wall Street are also making their way into the market for clean energy.

Goldman Sachs claims credit for the first rated "securitization" of solar energy, or converting an illiquid asset into a security, for a Japanese bond project. Investing in mutual funds that include an increasingly broad array of renewable energy options is another option.

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Scaling green businesses: Next moves for leaders

The transition to net zero is well underway, but it is not happening fast enough. Growth in key climate technologies, including wind and solar power and electric vehicles (EVs), has helped accelerate decarbonization efforts worldwide. Solutions such as green hydrogen and long-duration energy storage (LDES) are becoming available and, if scaled, could reduce global emissions even further. But the pace of scaling these technologies has not kept up with projections for a warming planet. Governments and companies have done an admirable job developing and deploying climate technologies to date, but a significant acceleration is required to meet net-zero targets—and stave off the most dire effects of climate change.

About the authors

This article is a collaborative effort by Rob Bland , Laura Corb , Anna Granskog , Tomas Nauclér , and Giulia Siccardo , representing views from McKinsey’s Sustainability Practice.

Last year, we released a framework  for launching and scaling green businesses, based on our work with both incumbents and start-ups. 1 See Rob Bland, Anna Granskog, and Tomas Nauclér, “ Accelerating toward net zero: The green business building opportunity ,” McKinsey, June 14, 2022. A few of the key actions include leading with game-changing ambition, signing up captive demand before scaling, and building capacity with parallel scaling. In the interim, as the economic and geopolitical backdrop has changed, market dynamics for green business builders have shifted in both nuanced and fundamental ways. On the one hand, capital markets and public-sector institutions have started to galvanize behind green investments. Policy, including the Green Deal Industrial Plan in Europe and the Inflation Reduction Act (IRA) in the United States, promises to support companies looking to scale climate technologies. At the same time, inflation, economic uncertainty, and the invasion of Ukraine have all complicated the path to net zero .

Three areas have emerged that should now be priorities for those navigating the challenges and seeking opportunities: building up supply chains (often through cross-sector partnerships), proactively addressing an emerging skills gap, and exploring different avenues for financing and investments.

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Many of the unique challenges to scaling green businesses remain—high capital expenditures on physical assets (compared with building digital businesses), higher short-term costs, and customer education and adoption barriers for many sustainable products. However, the urgency to reach net-zero targets has only grown in many markets, and the industrial economy is now being reinvented around a lower-carbon energy system , circular-economy practices , and other emerging models. Companies that can innovate and scale during these fast-moving, uncertain times could set themselves up for exponential growth. Our analysis shows that growing demand for net-zero offerings could generate $9 trillion to $12 trillion of annual sales by 2030 across 11 value pools, including transport, power, and consumer goods.

In this article, we lay out the evolving landscape for scaling climate technologies and explore three areas of potential action for green business builders.

A significant scaling gap

More than 4,000 companies have set or are in the process of committing to emissions reductions 2 “Companies taking action,” Science Based Targets, accessed February 22, 2023. and 70-plus countries have set net-zero targets. 3 “For a livable climate: Net-zero commitments must be backed by credible action,” United Nations, accessed February 22, 2023. How quickly would key climate technologies need to scale to help meet such goals?

To arrive at projections, we conducted an analysis of the current growth trajectory for climate tech relative to current net-zero commitments. Based on our analysis, even mature technologies—including wind and solar power—would need to scale by a factor of six to 14 times faster to remain on track for a 1.5° pathway by 2030 (exhibit). 4 Based on the McKinsey 1.5°C achieved commitments scenario, which represents existing commitments from companies and policies from countries. To conduct this analysis, we estimated the current trajectory of supply of key climate technologies (based on current activity) across four categories of maturity: mature, early adoption, demonstrated at industrial scale, precommercial; factored in current emissions-reductions commitments from countries and governments; and assessed the supply of these technologies that would be required by 2030 to stay on track for a 1.5° pathway.

Historically, growth in solar and wind has often outpaced projections, and new players entering the market (oil and gas companies, private equity players, and institutional investors, for example) show signs that the current pace of deployment could speed up. 5 “ Renewable-energy development in a net-zero world ,” McKinsey, October 28, 2022. Nevertheless, the potential gap for renewables to meet net-zero targets looks steep.

Climate technologies that are high-potential but relatively less advanced in their commercialization (compared with renewables) would need to scale at an even greater rate. Consider hydrogen. Our analysis indicates that supply of green hydrogen, which is produced with renewables, would need to grow by a factor of 200 times.

Next moves for green business builders

Seven actions for scaling green businesses.

Through our work with organizations that have built and scaled green businesses successfully, we have identified seven key principles . This framework is a way for leaders to navigate both the opportunities and risks involved in scaling climate technologies—and potentially set their companies up for significant growth. There is no one right combination of these factors, and most existing players have combined several of these elements.

Lead with game-changing ambition. Effective green business builders tend to set their sights on creating something significant from the start. Game-changing ambition may mean aspiring to produce a zero-carbon product at a competitive cost (which enables a competitive price), compared with a less sustainable alternative, and scaling new capacity fast.

Accelerate to the point of cost advantage. Building a business around a clean technology may require analyzing different technological pathways, including some technology options that are not yet commercialized. When analyzing a new technology, leaders must understand the scale break point for cost competitiveness, to reach lower unit costs faster and potentially be competitive on price from the start.

Sign up captive demand before scaling. Successful green business builders often set up demand with a strong commercial plan prior to expanding, to reduce risk. One way of accomplishing this is through purchase agreements. For example, Swedish battery manufacturer Northvolt signed a supply agreement with BMW. 1 “BMW Group signs long-term supply agreement for battery cells with Northvolt,” Northvolt, July 13, 2020.

Build capacity with parallel scaling. To reach scale-up goals, the ability to drive several investments or market introductions in a limited time frame is key. We’ve seen leaders “parallelize the scaling” from the start—that is, initiate additional growth waves before they complete the first one. One approach is scaling through partnerships in the value chain. For example, investing in production capacity in a company’s home region while finding a partner to deploy the same technology in another. Or coinvesting in expanding manufacturing capacity with suppliers.

Proactively create business ecosystems. As we explore in the accompanying article, scaling most climate technologies won’t happen by companies “going it alone.” Achieving scale requires coordination among governments and regulatory bodies, investment and financing institutions, incumbent players, and disruptive innovators. Finding the right scaling partners along the value chain—partners that have a similar strategic interest—is key. And coalitions dedicated to scaling access, cost-effectiveness, and supply across green ecosystems are a must for transitioning to a green future.

Lead on sustainable operations, through ambitious targets, innovation, and partnerships. Successful green business builders are leaders in how their operations minimize carbon emissions and other environmental impacts. Sustainable operations start from the beginning—designing with low-carbon inputs (green materials), implementing low-emissions processes (circularity), and controlling for emissions through the value chain. Supply chains for some key materials (lithium, for example) could be in high demand. Solidifying a sustainable, resilient, and cost-effective supply chain is therefore important.

Dedicate recruiting resources early in the process. As we cover in the accompanying article, the range of skills required to scale successful green businesses can be wide—and in an especially tight labor market, scarce. Green business builders can invest early in building their talent base, project the needed skill sets for the future workforce, dedicate resources to upskilling and new capabilities, and create the technical infrastructure to enable superior talent performance.

Scaling climate technologies often requires companies to think and act in bold and innovative ways. While our seven actions for scaling green businesses hold true, they continue to evolve (for a summary of the original framework, see sidebar, “Seven actions for scaling green businesses”). Economic uncertainty, inflation, new public funding, technological risks, and supply chain considerations have altered the landscape for green business building.

Actions that have become particularly important for organizations during these volatile times include creatively developing supply chains (including through partnerships), proactively addressing emerging skills gaps in the workforce, and exploring new avenues for financing and investment.

Build up the supply chain through cross-sector partnerships

Green business building efforts are often supply chain building efforts. For hydrogen-powered vehicles to scale and help decarbonize long-haul freight transport , for example, a supply of hydrogen and hydrogen infrastructure also needs to scale. We are increasingly seeing green business builders develop their supply chains by forging partnerships across sectors and, in some cases, creating a growth strategy with complementary players as collaborators. These partnerships are getting a boost from major climate legislation packages in the United States and the European Union. For example, the IRA in the United States allocates $369 billion for climate and energy spending, 6 Inflation Reduction Act of 2022, H.R. 5376, 117th Congr. (2022). with a focus on ventures that address critical gaps in the North American supply chain. These collaborations happen upstream, downstream, or horizontally in the value chain.

Upstream partnerships are operational partnerships that propel vertical integration. They occur when a company partners far upstream to secure critical supply of a product or service. In one example, the Volkswagen Group announced a joint venture with Umicore, 7 “PowerCo and Umicore establish joint venture for European battery materials production,” Volkswagen Group, September 26, 2022. a circular-materials technology company, to boost the supply of low-carbon battery materials. The collaborators aim to scale capacity to meet demand for 2.2 million EVs per year. Such a partnership could not only help fortify the supply chain for battery recycling, it could also help solidify demand for players across the EV and energy storage value chains (charging infrastructure, grid storage markets) and help reduce commercial risk for investors. In another example of a large-scale upstream partnership, Dow Chemical and Mura Technology, an advanced-recycling company, announced they will pair up to construct multiple recycling facilities for plastics that could add up to 600 kilotons of capacity by 2030. 8 “Dow and Mura Technology announce largest commitment of its kind to scale advanced recycling of plastics,” Dow Chemical, July 21, 2022.

Downstream partnerships are demand-based partnerships that drive vertical integration. They occur when a company uses a demand commitment from a purchaser to help stabilize or enable their financing. As an example, advanced-market commitments are one tool for helping to guarantee future demand for technologies. Take Frontier , a joint effort among organizations including Alphabet, Meta, Shopify, and Stripe. 9 McKinsey Sustainability is a partner in Frontier. For more, see New at McKinsey Blog , “ McKinsey partners with Stripe, Alphabet, Shopify, and Meta on $925 million carbon removal commitment ,” blog post, April 13, 2022. These organizations have collectively made a $925 million commitment to purchase carbon removal, enabling carbon removal suppliers to have a line of sight to their end customers while they are still scaling operations.

Horizontal partnerships are ecosystem partnerships that bring together a cross-section of organizations along the value chain. For example, the Center for Houston’s Future and the Greater Houston Partnership have laid the groundwork for a clean-hydrogen hub  in the Gulf Coast region by bringing together both public and private entities that span production, infrastructure, and electrolyzer capacity. 10 McKinsey’s Houston office has been working in collaboration with the Greater Houston Partnership’s Houston Energy Transition Initiative and Center for Houston’s Future. Over the past two years, McKinsey has supported these initiatives through a variety of efforts, including a pro bono study , Houston leading the energy transition - strategy report , Greater Houston Partnership, June 2021, and a report , Houston as the epicenter of a global clean hydrogen hub , Center for Houston’s Future and the Greater Houston Partnership, May 2022. Another example is the LDES Council, a group of more than 60 member institutions that has committed to accelerating the scale of LDES technologies. 11 McKinsey has collaborated with the LDES Council as a knowledge partner, including on the reports Net-zero power: Long duration energy storage for a renewable grid , LDES Council and McKinsey, November 22, 2021; A path towards full grid decarbonization with 24/7 clean Power Purchase Agreements , LDES Council and McKinsey, May 2022; and Net-zero heat: Long Duration Energy Storage to accelerate energy system decarbonization , LDES Council and McKinsey, November 2022. Members include technology providers, customers, and investors.

Get ahead on the skills gap

The net-zero transition has created a shift in needed job skills , as markets are reshaped and organizations institute new operational practices and processes. The range of skills is broad: from honing technical skills in manufacturing EVs, solar panels, and wind turbines to engaging with low-emissions suppliers to having executive expertise in carbon accounting and project finance. Green business building opportunities have encouraged many entrepreneurs, but the available talent to scale operations—in infrastructure, engineering for capital projects, and in process engineering, for example—has not quite caught up.

Looking into the next decade, skills shortages 12 Christopher Boone and Karen C. Seto, “With green jobs booming, here’s how to plug the sustainability skills gap,” World Economic Forum, January 9, 2023. could loom for certain sectors, particularly as more companies concurrently scale up manufacturing and operations in the United States to access the incentives offered by the IRA and the Bipartisan Infrastructure Law. For example, McKinsey analysis shows that bursts of factory building in Michigan could strain labor supply by close to 200 percent and manifest differently across skill categories of workers, with growing needs for architectural, equipment, and electrical work. To address these potential shortages, companies must not only acquire the right talent, they also need to figure out how to upskill and reskill labor for future opportunities. In the United Kingdom, for example, Octopus Energy has opened a heat pump  R&D and training facility to help accelerate adoption of the technology. 13 Octopus Energy Blog , “How Octopus Energy is revolutionising heat pumps,” blog entry by Aimee Clark, October 29, 2021.

Building up the talent pipeline at academic institutions is another way for companies to fill the skills gap. For example, Shell is a founding partner of the Energy Transition Institute at the University of Houston, where students work with Shell scientists across three core areas: hydrogen, carbon management, and circular plastics. 14 Chris Stipes, “Leading energy,” University of Houston, accessed February 22, 2023. Governments can support such talent-building efforts at universities. The US Department of Energy, for example, has funded a new research center at the University of Michigan for EV battery technology. 15 “$11M DOE center for next-gen battery technology,” University of Michigan, August 30, 2022. Private and public entities will both need to contribute to workforce development going forward.

Explore different avenues for financing and investments

Financing the scale-up of climate technologies can come with challenges, as many technologies rely on significant up-front investments in physical assets, including large-scale facilities and infrastructure. Technologies that haven’t yet reached technical maturity or commercialization can come with a higher risk profile for investors. As we have written about before, securing purchase agreements and inviting customers to invest in the business up front are some ways that green business builders have successfully addressed these challenges.

Project finance is an increasingly common approach for green business builders that can help mitigate the risks for capital-intensive infrastructure projects. Project finance is a nonrecourse or limited-recourse structure in which the project company shareholders’ liability is limited to their equity investment and the project lenders rely primarily on the project’s cash flow for repayment—meaning principal repayment usually begins after the project is operational. Northvolt, a Swedish battery maker, quickly turned to project financing and has plans for at least a third gigafactory manufacturing plant. 16 “Northvolt announces its third gigafactory will be established in Germany’s clean energy valley,” Northvolt, March 15, 2022.

Many green business builders look to blended finance models, which rely on a mix of private capital and public or philanthropic funding. Public-funding pools utilize grants as a means of reducing debt and mitigating risk, for example, and multilateral climate funds, such as the Green Climate Fund, have factored into these blended finance models.

Financing partnerships are also playing a larger role, from joint ventures between local start-ups and global technology companies to multistakeholder-funded research, development, and demonstration (RD&D) programs that provide early-stage and growth-stage equity capital for high-risk first deployment projects. These RD&D programs are particularly showing up in developing countries, to help increase private investments into businesses that serve underrepresented communities most affected by climate change.

When it comes to purchase agreements, inflation could be a top concern for suppliers and buyers. In response, we’re seeing green business builders offer agreements to customers that have inflation-adjustable price formulas.

Scaling new, green businesses may seem more challenging than it did a year ago, but we see many companies addressing the complications with determination and foresight. Organizations that evolve with the times and embrace a new set of actions could set themselves up for significant growth opportunities—and help the climate get back on track.

The authors wish to thank Sarah Abebe, Jennifer Barnes, Francesco Cuomo, Fredrik Dahlqvist, Jonas DeMuri-Siliunas, Dani Ebersole, Lisa Leinert, Mark Patel, Anastasia Perez Ternent, and Megan Routbort for their contributions to this article.

This article was edited by Andrew Simon, a senior editor in the Seattle office.

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Steps to Create Your Company’s Renewable Energy Strategy

August 1, 2018

Denielle Harrison

Former Manager, BSR

At the Global Climate Action Summit this fall, stakeholders from around the globe will meet in San Francisco to discuss how we can take climate ambition to the next level . Business can play a significant leadership role in accelerating the transition to a lower-carbon economy, and as we have seen through initiatives like the Renewable Energy Buyers Alliance (REBA) , renewable energy can be a key component of climate action efforts.

Corporate renewable energy procurement should be guided by a defined strategy based on available options, key priorities, and ambition. To create your strategy, you must identify your company’s motivations for procuring renewable energy, adopt supporting goals and commitments, and identify available internal human and financial resources to aid execution.

These are the steps we would suggest to help you get started.

1. Assess Your Options

The first step is to assess the landscape of renewable energy sourcing options available on the market to determine what is feasible. This will ultimately determine the renewable energy options available to you.  

Current and future policies will impact renewable energy costs, incentives, and availability. The Climate Policy Tracker can be a useful tool in assessing how regulations will impact your renewable energy choices in various jurisdictions.

After narrowing procurement options based on geography, your company must consider specific site constraints. Here are some questions to consider:

• Is your real estate portfolio suitable for onsite renewable energy generation? Leased assets often pose a challenge for onsite generation, requiring companies to liaise with their landlords; however, renewable energy availability also poses a challenge. For example, a company that leases retail space in an urban locality with poor solar energy potential may not have the option of leveraging onsite renewable energy, despite a supportive landlord.
• If your real estate portfolio is suitable for onsite generation, what is the energy capacity of potential projects/installations? Companies with owned or leased assets that support onsite renewable energy generation should consider the energy capacity of any potential projects/installations and use this to calibrate their local procurement implementation. Asset type and energy capacity should be significant considerations when negotiating contract terms with potential project developers.
• What is your time horizon? Long-term contracts should not be considered for sites that are likely to be eliminated from the real estate portfolio before the termination of the power generation contract.

2. Create Your Strategy

Once you’ve determined what your renewable energy options are, the next step is to determine your ambition level and define your strategy for renewable energy. To ensure adoption and integration within your company, this should complement both your business and sustainability strategies. A company with existing energy intensity, greenhouse gas reduction, and business growth goals should design a renewable energy strategy that complements existing objectives and initiatives to facilitate execution. Available financial resources should factor prominently into this and will ultimately dictate the realistic level of ambition your company can set.

Your strategy should reflect your company’s motivation for renewable energy procurement. For example, a company seeking to grow the renewable energy market and illustrate private-sector demand for clean power may prioritize options like new onsite or regional solar installations and choose to only purchase renewable energy attributes (e.g. RECs) that are bundled with renewable power. One example of this is Intuit’s Purely Green Program , which the company launched in part to show market demand for wind energy in Texas for its business partners, employees, and customers. Adobe’s renewable energy strategy prioritizes onsite installations and PPAs, supported by energy efficiency and policy advocacy, to meet its 100 percent renewable energy goal. Anheuser-Busch InBev’s strategy aims to source roughly 75 percent of its electricity from direct PPAs and roughly 25 percent from onsite installations.

3. Identify Opportunities to Collaborate

While renewable energy procurement variables can be complex to navigate, you do not need to work in isolation. Collaborating with other companies can help you achieve your strategic renewable energy objectives and minimize the barriers to entry for procurement.

For example, you could consider partnering with a group of companies with regional operations who are willing to enter into a shared procurement contract. This approach, known as consortium aggregation, is both feasible for companies with energy demands that are typically individually too small for project developers and companies with significant energy demands that can appropriately distribute the project load. For example, AkzoNobel, DSM, Google, and Philips leveraged this approach in the Netherlands—each company assumed an equal stake in a wind PPA there. The shared contract can also be anchored by a company that assumes the majority share of the energy, leaving smaller companies to assume small shares of the overall project load.

Initiatives like the Future of Internet Power and REBA can also provide the resources and tools for companies to execute against their renewable energy strategies together. Contact us if you’re interested in learning more about how you can help increase your climate ambition with renewable energy in advance of the Global Climate Action Summit.

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Now is a good time for entrepreneurs to get started in the renewable energy sector. The following best practices will help any business get off the ground.

How to Start a Renewable Energy Business

Emily Folk | Conservation Folks

Growing demand for sustainable energy solutions and the increasing scarcity of fossil fuels have a wide range of consumers — including individuals, businesses and government institutions — more interested than ever in renewable energy.

At the same time, startups in the renewables industry have access to a wide range of new technology and government initiatives designed to encourage investment in clean energy.

Now is a good time for entrepreneurs to get started in the renewable energy sector. The following best practices will help any business get off the ground. 

Start by Knowing Your Niche

Some successful renewable energy companies and startups have a highly specific focus. Others identify opportunities where they can improve access to renewable technology or make existing solutions more cost-efficient.

Solstice, for example, is a renewable energy startup that specializes in helping communities invest in solar energy by bringing together individuals who are interested in the technology but don’t have enough capital to purchase a solar system themselves.

Identifying a specific niche within a sector of the industry — like community-focused solar services — can help make a startup more competitive against well-established renewable energy providers.

Take Advantage of Local Initiatives

Some of the most effective new renewable businesses are able to succeed because they follow industry momentum.

For example, there’s Delfos, the developer of an intelligent maintenance platform for wind turbines. The platform, using specialized smart sensors, gathers data on wind turbine performance and function. The data the platform provides enables turbine owners to improve maintenance practices and tweak operating variables to minimize energy loss.

A business like Delfos is most successful when there are incentives for local governments, businesses and other organizations to spend on renewables.

The Wind Production Tax Credit (PTC), for example, made turbines a much more compelling investment. Right now, this credit is set to expire at the end of 2020. The last time the credit expired, in 2012, new installations of wind power in the U.S. fell from a record 13 gigawatts to none the next year.

While you may not want to be involved in the policy side of your business, familiarity with federal, state and local incentives — as well as private initiatives in your area — will be key to success.

Be Ready for the Major Renewable Energy Hurdles

In addition to the usual challenges of starting a new business, entrepreneurs in the renewable energy industry will face some unique difficulties.

As with the audience of any other sector, customers of renewable energy products and services want benefits and savings over the solutions they’re already using. You’ll be competing both with other businesses in your particular niche as well as the non-renewable solutions your audience currently relies on.

In general, clean energy will be a significant investment. There’s often no real infrastructure to build on, meaning your company will be helping a particular consumer or client develop their home solar system or wind farm from scratch.

For renewable energy businesses, there are ways to cut back on the high cost of installing new clean energy systems. Used construction equipment, for example, can help reduce operating costs , while cost-saving approaches to specific projects — like geothermal loops that take advantage of nearby lakes — may help drive down expenses further.

There’s a growing body of evidence showing that consumers are willing to pay a premium for green products — with younger consumers especially open to markups on sustainable goods and services. There’s also evidence that people are willing to invest heavily in energy systems that require significant upfront investments.

Major names from inside and outside the renewables sector have had major successes in the industry. Tesla even recently increased the price of the company’s solar battery system, the Powerwall, due to rapidly growing demand for home solar tech.

Still, renewables are a niche market at the moment. Even the most committed consumers may be put off by the high initial investments needed for a geothermal heating system or home solar array.

An effective pitch will likely need to demonstrate how your business can provide both reduced emissions and cost savings. Customers will likely be convinced only if you can show them how renewable products can be affordable, or may pay for themselves over time.

How New Renewable Energy Businesses Can Succeed

The continuing green energy boom means that right now is a great time for entrepreneurs and renewable energy experts to start their own business in the sector.

However, despite interest in renewables, any new business is going to face some significant challenges. The cost of buying into renewable systems means any new company will need to know its niche very well, and be ready to make strong arguments about the potential benefits and cost savings of any service it offers.

The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag

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Green Power Consultancy

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Green Power Consultancy is a start-up organization in Burlington, VT that offers designs and advice to architects and consumers regarding environmentally sensitive buildings as well as energy consumption recommendations. Green Power has identified three keys to its success. The first is the need to only offer solutions which are based on market demand. The second is to ensure that all of its offerings are based on economic justifications; the solution should make sense beyond the environmental considerations because it has long-term economic value.

Green Power will be targeting architects and individual consumers. Green Power will work closely with several architects providing them the ability to offer environmental solutions to their customers. This group is growing at 7% and there are 23 potential customers in the area. The second customer group is individual consumers; an environmentally conscious group that have sought out a service provider to help them implement their personal ethics into the design of their new or existing structure.

Green Power is an environmental energy consultancy that offers a wide range of services: advice regarding passive heating, grey water usage recommendations, renewable energy considerations and employee transportation options.

Green Power will be led by the seasoned management team of Dan and Sue Lang. Dan received a degree in environmental studies, business, and a Masters in architecture. Dan has several years of work experience within the industry. The second part of the team is Sue Lang. Sue has an MBA and work experience with the Bonneville Power Administration in their renewable energy department. Through a combination of excellent education and good work experience, Green Power’s management team will be able to successfully execute on its business plan.

Green Power has conservatively forecasted sales of $202,343 for year two, rising to $238,402 for year three. Net profit will be reached in the second year. Through a combination of a proven business model, a strong management team, and this comprehensive energy business plan to guide the organization, Green Power will be long lasting, profitable business.

It is Green Power Consultancy’s mission to provide the finest green energy solutions for new constructions as well as existing building owners/lessors. Through careful analysis, attentive customer support, and cost effective solutions, Green Power will become a stable business serving the Burlington community.

Keys to Success

Green Power has identified several keys to success that will be instrumental in creating a sustainable business.  If these keys are followed, the likelihood of success will significantly increase.

• Offer solutions that are demanded by customers.
• Ensure all of the solutions have economic considerations built into the respective models.
• Only provide 100% customer satisfaction.  All customers must have their expectations exceeded.

Green Power has identified three objectives that it will pursue for the long-term success of the business:

• Proven cost-benefit analysis environmental approaches to structure building, maintenance and energy consumption.
• Become the premier environmental energy consultancy in the state within five years.
• Reach profitability within three years.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Green Power is a Vermont-based L.L.C green energy consultancy. Green Power offers its services both to architects who are constructing new businesses as well as existing building owners/users who are looking to make their existing structure more environmentally sound.

Start-up Summary

Green Power will require the following equipment in order to begin operations:

• Computer system including three workstations, standard laser printer as well as a wide mouth printer, Internet access, and assorted software such as Microsoft Office, QuickBooks and CadArchitect (the premier architect industry software).
• Three work areas including two drawing tables and the assorted office supplies for the standard workdesks as well as the drawing tables.
• Various bookshelves, lights, and couches (for clients).
• Bike storage unit/locker.
• Refrigerator, microwave, and assorted utensils for the lunch room.

Company Ownership

The two principal owners of Green Power is Dan and Sue Lang.

Green Power offers a wide range of environmentally-conscious energy solutions related to new and existing structures. The main areas of consulting that Green Power will offer are:

• Passive heating: This applies to the construction of the new structures, designing the structure to capture and utilize heat that is either generated naturally or as a by-product of the building. Examples of passive heating include specific placement of the heating vents, the design and placement of the building and the windows.
• Grey water: This is the capture and utilization of grey water.  Grey water is water that has been used for some other source such as in the faucets or rain water that can no longer be offered as potable, but still can be used for toilet flushing or land irrigation.
• Renewable energy: This service offers customers the information needed to make intelligent decisions regarding the use of renewable energy sources. Renewable energy sources can be defined as sources of energy where the rate of energy depletion is not faster than the production rate.  Examples include: wind power, photovoltaics, hydro power, biomass, solar energy.
• Employee transportation: This service is to reduce the energy consumed by employees traveling to work. Typical aspects of the plan are outlining public transportation options, developing a company subsidized public/alternative transportation voucher, building covered bicycle lockers and shower facilities as well as other activities designed to increase the number of employees using bicycles as their main source of transportation to work.
• Efficient building construction: This focuses on the use of local building materials thereby decreasing energy needed for transportation as well as the utilization of recycled materials for construction decreasing energy demands for the manufacture of new building materials.

Market Analysis Summary how to do a market analysis for your business plan.">

Green Power has segmented the market into two distinct target market groups. The first group is architects who are building a structure either speculatively (infrequently) or for a client (generally). The second customer group is individual customers who desire environmental elements designed into their building. The niche that Green Power has chosen to participate in is a fairly new field. Green Power faces competition from eco-architects as well as from the local utilities that may have a small department that offers green energy consultation advice. The industry often operates to satisfy clients; it is the end customer that typically requests green energy designs and they either seek out a specific architect or they request their architect to receive guidance from firms such as Green Power.

Market Segmentation

Green Power has segmented its target market into two different customer groups, both equally attractive.

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• The architect firms typically have two – nine partners.
• Offer both residential and commercial design work, however 67% of their work is commercial.
• The firms typically have only a handful of service providers that they work with. This means that once they find someone they trust, they develop a long-term relationship with that service provider.
• Yearly revenue ranges from $200 thousand – $5 million.

Individual customers This segment contains consumers who are either having a residential home, or a commercial structure, designed. Due to their personal environmental concerns and a recognition that it can be cost effective to have building decisions with environmental considerations, they have requested Green Power’s assistance. They are generally working directly with Green Power for their design needs and will likely then take this design criteria to their builder.

• The individual is an environmentalist and they take into account how their action will impact the environment.
• The age range of clients is 35-49.
• Average household income is $65,000. Please note that while the overriding concern in using Green Power’s services is the positive impact on the environment, a cost benefit analysis indicates that in the long term it is cost effective to adopt green energy considerations.
• 89% of the group have at least an undergraduate degree, 26% have a graduate degree.

Target Market Segment Strategy

Green Power has chosen these two market segments for compelling reasons. The architects have been focused on because they are the service providers that do the bulk of the design work for residential and commercial structures. The architects are used as sales people for Green Power’s services, they are the ones that can then sell these services to their customers. It benefits the architects because they are able to offer a wider range of value-added-services to their customers without spending capital of learning the information themselves. By aligning itself with architects, Green Power is able to offer their services to a larger group of people.

Green Power will also serve individual customers. These are people who know that they want environmental considerations made in the design of their structure and will seek out a firm such as Green Power to have this work done. Burlington is a wonderful place to locate Green Power as there is a high population of environmentally-conscious people in this city. This provides Green Power with a large market of interested customers. Additionally, this market group is attractive because people that have environmental tendencies are often vocal about their commitments or causes. By offering green energy services, Green Power allows this group of people to act on what they believe in on a personal level, adhering to the wise saying think globally, act locally.

Service Business Analysis

The environmental power consultancy industry is fairly new. Only recently has there been an emergence of firms that offer these services. This can be explained by several factors. First, people are becoming more environmentally aware these days, a function of many things including the recent problems with the Middle East and Fundamental Islamists. These recent problems have forced people to reconsider America’s dependence on oil and the need to maintain good relationships with Saudi Arabia only because of their oil. Another factor that has contributed to the growth of green power is that it has become increasingly cost effective to make business decisions while taking into account the decisions impact on the environment. For years an environmental decision was based on personal consciousness and ethics, not overriding economic factors. Now money can be saved when environmental impacts are taken into account. Please read the following section which will indicate the different players within the industry.

Competition and Buying Patterns

The competition generally takes two different forms:

Eco-architects These are architects that specialize in environmental design considerations. Typically their entire practice is based around structures that have environmental elements. Green Power could actually be within this industry niche, however they are able to serve a larger customer baser, therefore earn more revenue as well as make a positive impact in our world by offering its services to both end consumers as well as regular architects as opposed to the business model of only serving one set of customers.

Local utility The local utilities often have a department that offers free consultation for environmental design considerations. There are incentives for the utilities to attempt to curb their customer’s use of their energy. These incentives take the form of not needing to make as many capital expenditures to develop the power delivery infrastructure to accommodate the increased load for energy demands. Therefore, the more the utility is able to get their customers to conserve, the less money they have to spend on infrastructure improvements, the more money they earn. That being said, the utility often has a small department that offers tips on energy conservation. While these tips can be quite helpful, since they are offered for free for the power customers, they are not nearly as comprehensive as they could be. So while they provide good initial tips, the local utility is not a strong competitor to serve a client who is committed to making as much of a positive environmental difference as can be achieved by using a specialized firm.

The buying pattern for consumers is currently being defined as we speak, a function of how new the industry is. Currently, purchasing decisions are based on customers typically making requests for these services from their architect or they do a bit of research to determine who offers these services. As the industry becomes more mature, firms will become more established and reputation and visibility/awareness will shape buying decisions. Since there is a wide range of options regarding implementation, price is less of a consideration for the decision since most of the service providers can offer a wide range of inexpensive to expensive options.

Strategy and Implementation Summary

Green Power’s business strategy recognizes and will leverage the fact that a lot of business will be transacted through networking and word-of-mouth referrals. With this in mind, Green Power will work diligently to build alliances with architects who can co-brand their services with Green Power thereby increasing Green Power’s potential qualified customers.

Green Power will rely on its competitive edge of adopting a cost effective environmental solution so in addition to meeting environmental concerns of the customer, Green Power’s services will save the customer money over time.The marketing strategy will highlight both environmental attributes as well as economic ones.The marketing campaign will recognize the existence of two distinct market customers. Lastly, the sales strategy will offer a compelling economic analysis of how the customer can save money by adopting Green Power’s designs.

Competitive Edge

Marketing strategy.

The marketing strategy is based on developing an awareness regarding Green Power’s services to both architects and the end use consumers. Green Power will strongly use networking as a means to develop relationships with many of the city’s architects. Although Burlington is a reasonably-sized city, the architect community is fairly close knit. If one wanted, it is easy to develop active relationships with many of the different architects in Burlington. By developing these relationships, Green Power will allow the firms to become familiar with not only the services offered by Green Power, but also the personalities involved, recognizing that much of business is transacted by who you know. Advertisements will be placed in the local architect newsletter.

To reach the end user customers, Green Power will use Advertisements in the local paper as well as within the yellow pages. As a means of increasing visibility of Green Power, GP will participate in several community-based seminars that serve as a free source of information for the citizens of Burlington. Green Power believes that participating in the seminars will be an effective way of meeting many of the potential customers and allowing them to become familiar with Green Power expertise.

Sales Strategy

The sales strategy implicitly and explicitly takes into account the philosophy that the reason that many of the people are attracted to Green Power is because of its personal environmental ethics. The sales strategy will leverage this desire with the fact that environmental decisions can have positive economic impacts in the long term. Therefore the sales strategy will leverage the competitive edge of economic justification as the method for turning sales leads into customers. For this strategy to be effective, Green Power will present customers case studies and quantifiable data proving economic justification.

Sales Forecast

Green Power has adopted a conservative sales forecast for the business plan. By adopting a conservative prediction, it is easier to hit sales goals and increase the likelihood that the business plan is relevant to the business. If the sales forecasts was wildly off, it casts doubt on the application of the plan for the business.

Sales will be slow for the first several months, a function of Green Power being a start-up organization. As Green Power increases their customer pool and more architects become familiar with GP’s services, business will grow. Growth will be forecasted and preferenced as steady. The steadier it is, the easier it will be to deal with the incremental growth in work. Please view the following table and charts for a graphical representation on monthly and yearly sales.

Cost of sales for a consulting company are negligible, however, cost of architects sales will be 20%, since we will pay commissions to the architects for referrals.

Green Power has identified several milestones as a way of setting achievable goals. Performance is likely to be improved through the quest of reaching the goals. This phenomenon is well documented and is used in large corporations such as GE’s Seven Sigma Program as well as many state’s benchmarked-based assessment testing systems. Green Power has identified the following milestones:

• Business plan completion;
• 10th customer;
• Revenues exceeding $50,000;
• Profitability.

Web Plan Summary

The website will be used as a marketing tool. It will offer a description of the services offered as well as a listing of different clients served.

Website Marketing Strategy

The plan for marketing the site is fairly simple: submission to search engines such as Google and listing the website on all of the company’s correspondence and printed marketing/sales media.

Development Requirements

Green Power will utilize a local programmer to build the site.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The company will be lead by the husband and wife team of Dan and Sue Lang. Dan grew up in Oregon and attended the University of Oregon for his undergraduate education. Dan’s major was environmental studies and business. After graduation Dan worked for a year at an environmental testing company. Through general networking, Dan was introduced to one of the three principals of a company called The Seal Company. The business model for this company was to make assessments for private and public companies as to their environmental impact. His position with The Seal Company provided him with wonderful insight into the industry of environmental assessment and helped provide him with a foundation of knowledge regarding green energy, just one of the areas of assessment. After a year of this Dan enrolled into the University of Oregon’s Master’s Architect program, taking course work in environmental design. This degree would provide Dan with the skills to make a larger impact in his community.

Sue went to the University of Burlington for undergrad and then moved out to Oregon to attend Willamette University’s MBA program. After her degree Sue moved up to Portland and worked for the Bonneville Power Administration where she worked in their renewable resource division. Much of her projects were marketing based, trying to gain public acceptance of renewable energy sources.

Personnel Plan

For the first three months of business the organization will be quite lean, consisting of just Dan and Sue. Dan will be responsible for most of the business-related issues as well as doing research and helping out with the work projects. Sue’s responsibilities will be marketing and sales based. She will work hard on developing visibility for the company as well as working with prospective customers. Green Power has forecasted that on month four it will need administrative assistance. The duties will be answering the phone, some input accounting, and other clerical functions. Initially this person will be part time but will move to full time at the beginning of year two.

Financial Plan investor-ready personnel plan .">

The following sections will outline the important Financial Assumptions.

Important Assumptions

The following table details important Financial Assumptions.

Break-even Analysis

The Break-even Analysis is indicated below.

Projected Profit and Loss

The following table and charts will indicate Projected Profit and Loss.

Projected Cash Flow

Projected Balance Sheet

The following table will indicate the Projected Balance Sheet.

Business Ratios

The following table contains typical Business Ratios of both Green Power as well as the industry as a whole.

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Business Plan Template for Renewable Energy Technicians

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you a renewable energy technician or entrepreneur looking to take your green projects to the next level? Look no further than ClickUp's Business Plan Template for Renewable Energy Technicians!

Crafting a solid business plan is essential for securing funding and successfully launching and managing your renewable energy projects. With ClickUp's ready-made template, you'll be able to:

• Outline your goals, financial projections, and marketing strategies to attract investors and partners.
• Develop a comprehensive operational plan to ensure smooth project execution.
• Streamline your planning process and save time with a pre-built template designed specifically for renewable energy businesses.

Don't let your green dreams remain just dreams. Get started with ClickUp's Business Plan Template for Renewable Energy Technicians today and turn them into a sustainable reality!

Business Plan Template for Renewable Energy Technicians Benefits

For renewable energy technicians and entrepreneurs, using a business plan template specifically designed for the renewable energy industry offers a range of benefits, including:

• Streamlining the process of creating a comprehensive business plan
• Ensuring that all essential components of a business plan are included and organized effectively
• Providing a clear roadmap for achieving business goals and objectives
• Facilitating strategic decision-making and risk management
• Enhancing credibility and attracting potential investors and partners
• Guiding financial planning and projecting future revenue and expenses
• Helping to identify potential challenges and opportunities in the renewable energy market
• Supporting effective marketing and sales strategies to reach target customers
• Assisting in monitoring progress and adjusting strategies as needed
• Increasing the likelihood of securing funding for renewable energy projects or businesses.

Main Elements of Renewable Energy Technicians Business Plan Template

For renewable energy technicians and entrepreneurs in the renewable energy industry, ClickUp's Business Plan Template provides a comprehensive solution to outline your goals and strategies to secure funding and effectively manage your projects. This template includes:

• Custom Statuses: Track the progress of each section with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your business plan is accounted for.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific information and organize your business plan effectively.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate through your business plan and gain a holistic understanding of your project's progress and timeline.
• Collaboration Tools: Collaborate with your team using features like task comments, attachments, and mentions to ensure everyone is on the same page throughout the business planning process.

How To Use Business Plan Template for Renewable Energy Technicians

If you're a renewable energy technician looking to create a business plan, follow these steps using the Business Plan Template in ClickUp:

1. Define your business concept

Start by clearly defining your business concept. What services will you offer as a renewable energy technician? Will you focus on solar power, wind energy, or other forms of renewable energy? Clearly articulate your unique selling proposition and how you plan to differentiate yourself from competitors.

Use a Doc in ClickUp to outline your business concept and explain your value proposition.

2. Conduct market research

Before diving into your business plan, it's important to have a good understanding of the market for renewable energy technicians. Research the demand for renewable energy services in your target market, identify your potential customers, and analyze the competitive landscape.

Create tasks in ClickUp to gather market research data, track competitors, and identify potential clients.

3. Develop your marketing strategy

Once you have a solid understanding of the market, it's time to develop your marketing strategy. Determine how you will reach your target audience, whether through digital marketing, partnerships with local businesses, or other channels. Outline your pricing strategy, promotional activities, and customer acquisition plan.

Use custom fields in ClickUp to track your marketing strategy, including budget, target audience, and marketing channels.

4. Create a financial plan

A comprehensive financial plan is crucial for any business. Estimate your startup costs, including equipment, supplies, and licensing fees. Project your revenue and expenses for the first few years, taking into account factors such as client acquisition, ongoing maintenance costs, and potential growth.

Use the Gantt chart in ClickUp to create a timeline for your financial projections and set milestones for achieving specific revenue and expense goals.

5. Set goals and track progress

Finally, set goals for your renewable energy technician business and develop a plan to track your progress. Establish key performance indicators (KPIs) such as the number of installations completed, customer satisfaction ratings, and revenue growth. Regularly review your progress and make adjustments to your business plan as needed.

Use Goals in ClickUp to set specific, measurable, achievable, relevant, and time-bound (SMART) goals and track your progress towards them.

By following these steps and using the Business Plan Template in ClickUp, you'll be able to create a comprehensive business plan for your renewable energy technician business. Good luck!

Get Started with ClickUp’s Business Plan Template for Renewable Energy Technicians

Renewable energy technicians and entrepreneurs in the renewable energy industry can use the Business Plan Template for Renewable Energy Technicians in ClickUp to effectively outline their goals, financial projections, marketing strategies, and operational plans. This template will help them secure funding and successfully launch and manage their renewable energy projects or businesses.

Here's how to use the template:

Hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Designate the Space or location in your Workspace where you want this template applied.

Invite relevant team members or guests to your Workspace to start collaborating.

Take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan by different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• Utilize the Timeline View to set deadlines and milestones for each section of your business plan.
• The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate and make updates.
• Refer to the Getting Started Guide View for step-by-step instructions on how to effectively use this template.
• Customize the template to fit your specific needs:
• Add the custom field "Reference" to include any supporting documents or external resources.
• Use the custom field "Approved" to track the approval status of each section.
• The custom field "Section" allows you to categorize each part of your business plan for easy organization and reference.

By using the Business Plan Template for Renewable Energy Technicians in ClickUp, you can efficiently create a comprehensive plan that will help you secure funding and successfully launch and manage your renewable energy projects or businesses.

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How to Start a Renewable Business

• Small Business
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• Starting a Business
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Government Energy Saving Grants

How to start a reseller business, how to start my own manure selling business.

• How to Open a Pumpkin Farm
• How to Get a Loan for a First Time Business

Our sources of energy are becoming more and more scarce and increasingly expensive, and eco-friendly green living is becoming more an essential than optional. Correspondingly, starting a renewable product or energy business can be a profitable endeavor that does our environment some good as well. Many renewable energy businesses requires no start-up fees or formal training.

Determine what type of renewable business you wish to establish. Many types of business opportunities exist in renewable and green energy fields with different goals, objectives, expenses and operational procedures. For example, Energy Automation Systems provides a solar products affiliate sales program for energy conservation with a one-time start-up fee of $59,000 at the time of publication. On the other hand, a solar panel cleaning business offered by the Solar Maid Company requires no franchise fees or royalties.

Check what permits you might need. Check with your local governing agencies, such as the secretary of state, county commissioners or city council to determine what -- if any -- types of business licenses and permits you need to legally operate your business. Business license regulations vary from state to state, but no matter where where you operate, the IRS requires that you have an employer identification number to claim your earnings and pay your taxes. You can apply for an EIN by visiting the IRS website.

Educate yourself about the green and renewable energy industry. Though you don't need to have a college degree to become a professional in the renewable energy industry, it does require knowledge and passion to succeed. Research all aspects of the environmental state, national recycling and energy efficiency statistics, product evaluations and consumer needs for renewable sources. Look for business opportunities that include training programs, seminars and support.

Carefully investigate your potential suppliers. Unfortunately, some renewable energy companies don't survive long due to poor business habits or inferior products. Once you've narrowed your options for investments, affiliate participation or service agreements, conduct a background check on the companies you are interested in working with. Search for all available reviews and rating with the Better Business Bureaus before joining any affiliate programs or making an investment.

Create business and marketing plans. Your business plan is basically a handbook guiding you -- and your investors -- through each step of building your company. Include an executive summary, product information, operational procedures, financial aspects, goals and projections. Create a solid marketing strategy outlining your target consumer and how you plan to reach them--advertising, social media, sales calls and other avenues.

Acquire any necessary capital. Depending on the type of renewable business you are establishing, you may be eligible for grant funding. Check with U.S. Small Business Administration or Grants.gov to see if you qualify for any small-business grants. You will likely need to write a proposal, complete an application and provide copies of your business and marketing plan. If you are ineligible for energy business grants or are in need of additional funding, explore loan opportunities.

Pinpoint your target consumer and execute your business and marketing plan. Once you have settled the logistics of your start-up and secured necessary funding, it's time to engage your target consumer and make the sales pitch. Research local demographics to determine where the most potential customers are. Look for businesses, homeowners, landlords, school districts, construction companies and other facilities, organizations and consumers that would benefit from your renewable products or services.

• Energy Consumers Edge: Renewable Energy Start-Up Business Investing
• StartupBizHub: Tips to Start Renewable Energy Business
• To ensure a smooth start-up, consider having consultations with industry professionals such as accountants, legal advisers, grant writers and business and marketing specialists.

Michelle Renee is a professional trainer and quality assurance consultant in the career, education and customer service industries, with two decades of experience in food/beverage and event coordinating management. Renee has been published by Lumino and Career Flight as well as various food, education and business publications.

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Energy Strategy for the C-Suite

• Andrew Winston,
• George Favaloro,

Many companies spend millions or even billions of dollars on energy every year. This is not just costly, but also represents an often overlooked opportunity to reduce risk, increase resilience, and add value across the board. As environmental concerns grow more urgent and new technologies emerge, companies must respond to these shifts with a robust energy strategy. This article offers a five-step framework to revamp your company’s energy policy: Create a C-level mandate, integrate energy goals into the vision and operations, track progress companywide, tap new technologies, and engage stakeholders.

Energy is no longer merely a cost to be managed.

The Problem

Sweeping environmental, social, and business trends have propelled energy up the corporate agenda. But most firms still approach energy as merely a cost to be managed.

The Solution

Companies need a cohesive energy strategy that reduces risk, improves resilience, and creates new value.

Companies must create a C-level mandate, integrate energy goals into their vision and operations, track progress companywide, tap new technologies, and engage stakeholders. These steps are not revolutionary—but systematically applying them to a company’s energy use is.

Large companies spend millions, or billions, of dollars directly on energy each year—and millions more indirectly, on supply chain, outsourcing, and logistics costs. Yet outside the most energy-intensive industries, the majority of firms approach energy as merely a cost to be managed. This is a strategic mistake that overlooks enormous opportunities to reduce risk, improve resilience, and create new value.

• Andrew Winston is one of the world’s leading thinkers on sustainable business strategy. His books include Green to Gold , The Big Pivot , and Net Positive . AndrewWinston
• George Favaloro  is a managing director in the sustainability services group at PwC. Follow him on Twitter @GeorgeFavaloro.
• Tim Healy is the chairman and CEO of EnerNOC, an energy intelligence software provider.

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23 Green Business Ideas for Eco-Minded Entrepreneurs

Table of Contents

Today’s consumers are just as interested in a business’s corporate social responsibility practices as they are in its products and services. This is good news for eco-minded entrepreneurs. If you’re interested in starting a company that can make a lasting environmental impact, consider the following 23 eco-friendly business ideas. You can simultaneously make money and help save the planet.

Ensure your green business genuinely prioritizes eco-friendly practices. Consumers are wary of greenwashing tactics — that is, when a company deceptively markets itself as green.

Green business ideas for eco-minded entrepreneurs

Eco-friendly companies may include outdoor apparel brands, businesses that make reusable plastic bottles, eco-friendly cleaning companies, businesses that install solar panels, a local recycling business, and many other potential ventures. If you want to start a business with a green, eco-friendly focus, consider any of the 23 ideas below.

1. Ink refill business

Starting an ink refill business can be an environmentally conscious — and highly profitable — decision. You might question whether refilling ink cartridges truly helps the environment considering the amount of paper wasted annually. However, when people reuse old ink cartridges, less nonbiodegradable waste accumulates in landfills. Paper, printers and copiers are still necessary in the business world, but empty ink containers are not.

2. Environmental publications

If you love to write, start your own environmentally minded publication. Your actions can make a big difference in the world. By debunking popular myths and sharing the truth about the world we live in, you can help consumers rethink how their actions affect the planet. 

Start your environmental publication by creating a blog or email newsletter and letting it build traction.

3. Green finance

Green finance focuses on supporting local, community-level projects with an emphasis on sustainable and ecologically friendly agriculture. Green finance is also typically concerned with educational opportunities, funding for artistic endeavors and projects that support local ecology. 

Green finance is preoccupied with social profitability. While actual profit margins remain crucial, green finance aims to support beneficial projects that provide value to the local community and ecology.

SBA loans can help launch your green endeavor. For example, SBA 504 loans are intended for community projects, which creates a way to intertwine monetary and social profitability.

4. Eco-friendly retail

The online clothing brand For Days provides an interesting twist on customer loyalty programs . Customers can purchase a “take-back bag” and send the company clothes they no longer use. In doing so, they earn rewards to spend on future For Days clothing purchases. 

Besides incentivizing sustainable clothes shopping, For Days partners with other leading brands in the sustainable textiles space, such as ADIUM and CARIUMA. If you’re thinking about opening a retail store , consider partnering with a company that has values similar to you and your customers.

5. Sustainable construction materials

You might not think of construction as sustainable, but some companies now provide recycled materials for use in projects like infrastructure repair. 

For example, Axion hopes its eco-friendly products will change how companies think about rebuilding America’s infrastructure. Its railroad ties and pilings are made from recycled plastic from consumer and industrial uses instead of nonsustainable materials like steel and concrete. Axion has worked with major partners like Long Island Rail Road to improve infrastructure safely and sustainably in the United States.

6. Organic catering

As organic food sales skyrocket, eco-friendly foodies should consider starting an organic catering company to share their passion for food and the environment. You could work out of a food truck or a catering kitchen. If you cater local events and business luncheons with organic and locally grown ingredients, free-range meats, and vegan, gluten-free and paleo meal options, you’ll appeal to nature lovers and health and wellness enthusiasts alike. 

Be sure to minimize your venture’s environmental impact by avoiding plastic and paper goods as much as possible and by composting food waste.

7. Eco-friendly beauty salon

If cosmetology is your passion, start a beauty business that’s Mother Nature-approved. Open a salon that prioritizes organic and vegan hair and beauty products. Eco-friendly hair salons can stock all-natural shampoos and conditioners, while nail salons can use environmentally friendly and vegan polishes and spa treatments.

Choosing the right business location for your salon is crucial. Conduct research to understand area demographics, potential foot traffic and nearby competitors.

8. Eco-friendly landscaping

Professional landscaping may make your lawn and garden look nice, but all that maintenance isn’t necessarily great for the environment. With some eco-friendly advice and know-how, you can help homeowners make their yards literally and figuratively greener. Try using drought-resistant plants and strategically placed trees for a lawn that saves water, energy, and money.

Landscaping is also a business you can start quickly if you want to get your venture up and running right away.

9. Sustainable event planning

Whether big or small, meetings and events can generate large amounts of waste and consume valuable resources. Green event planners use their expertise and event-planning skills to find eco-friendly venues, materials and accommodations. 

Whether you’re planning a corporate event or a small party, sustainable event management benefits more than just the planet. There are financial advantages — plus it generates a positive image for event organizers, vendors and stakeholders while raising awareness and inspiring change in the community.

10. Bicycle repair and refurbishing

Biking short distances instead of driving is better for the environment and your health. Like most transportation modes, bicycles occasionally need a tune-up.

You could be the expert cyclists come to when their bikes need repairing or maintenance. If you have some extra space, you could purchase inexpensive older bikes, fix them up, and sell them for a profit.

According to University of Oxford research, replacing one of your car trips per day with a bike trip can lower your carbon emissions by 67 percent. Consumers interested in ending their commute are exactly the right audience for your bicycle repair and refurbishing businesses.

11. Handmade, all-natural and organic products

Soaps, cosmetics and cleaning products are just a few of the household items that can be made using common organic materials.

Sure, anyone can find a recipe for a sugar scrub or vinegar-based cleaning solution and do it themselves. However, if you package and sell these items in sets, your customers conveniently have those all-natural products at their fingertips. Local markets and events are excellent places to sell your products, or you can sell them online . 

12. Eco-consulting

Are you an expert on green living? Start an eco-consulting service. Eco-consultants evaluate homes and offer solutions to make them more environmentally friendly. 

You could advise clients on switching their home appliances to more energy-efficient machines or implementing a recycling program. To further boost your credibility, become a certified eco-consultant.

13. Farmers market vendor

Thanks to the organic movement, those with a green thumb have a golden opportunity to earn money by selling non-GMO, pesticide-free produce at their local farmers market. 

Selling naturally grown fruits and vegetables gives you a distinct advantage over competing growers who use conventional farming methods, including pesticides. Note that you may have to be approved or certified by your local board of health before you can begin selling.

14. Green housekeeping services

For working parents, cleaning the house can be at the bottom of the to-do list. Market yourself as the green solution to their housekeeping woes by offering services that range from light dusting to heavy-duty chores like cleaning the kitchen and bathroom using only approved all-natural and eco-friendly cleaning products. 

Charge an hourly rate or create service packages for a flat fee. Remember, your clients are giving you access to their homes. Build a trustworthy reputation with people you know first before advertising to strangers.

15. Upcycled furniture

Don’t throw out your old, broken furniture. With basic templates and access to power tools, you can break down and reassemble chairs, tables and dressers into new pieces you can paint and sell. Shelving and storage units are easy to make from wood scraps. Depending on the item, you might even be able to fully restore a unique and valuable piece of furniture.

Alternatively, you could reupholster old chairs and couches to give them new life, and start an online resale business to market and sell your products

Scour Facebook Marketplace, Craigslist and eBay to find old furniture to upcycle.

16. Green franchises

Want to run a business with a solid brand and customer base already in place? Opening a franchise might be the answer. While franchising might call to mind fast-food joints and hotel chains, there are many eco-friendly franchise businesses and franchises for every budget .

17. Secondhand store

New things are typically expensive, and pretty soon, those costs add up. For example, a new book could cost $15 to $30, while a used book usually costs only a few dollars.

Opening a secondhand store saves your customers money and is better for the environment. Encourage consumers to donate their gently used items to you instead of tossing them in the trash so another person can get value from them. You can sell used clothes, coats, books, kitchen appliances and furniture. 

18. Green consulting

Green consulting is similar to eco-consulting but has a business focus. Whether it means cutting energy costs or reducing their carbon footprint, the pressure for businesses to make sustainability part of their business model is enormous, and that pressure is only going to grow.

Business sustainability consultant Barbara Englehart said there are numerous benefits for companies that go green, including reduced costs, risks and liabilities as well as increased employee retention and productivity.

“This is all [relatively] new in the business world, and companies need help,” Englehart explained. “They weren’t teaching sustainability in business schools five or 10 years ago.” 

19. Solar panel installation

Many green-minded homeowners have installed solar panels on their homes, and many more would like to do so. If you know how to do this, offer this service in your area.

20. Eco-friendly office cleaning

Common industrial cleaning products contain chemicals that contribute to pollution and can harm people. Starting an eco-friendly office cleaning business counters this problem. Your eco-friendly business can exclusively use nontoxic products or brands that minimize their use of single-use plastics. You can further decrease your company’s environmental impact by reusing greywater whenever possible. As a bonus, your client businesses can feel good about contracting with your services.

21. Reusable plastic bottles

Single-use plastics are indisputably a leading cause for concern among environmentalists. Offer people a way to drink water on the go without contributing to plastic pollution by launching a green industry business that designs, produces and sells reusable bottles. Explore alternative materials like metal or glass, bottles made from recycled plastic, or renewable plastics from materials like cornstarch or sawdust.

22. Environmental impact and carbon emissions lessons

Many people aren’t aware of the carbon emissions their daily activities produce and the impact those activities have on the environment. Offer classes to educate the public about how driving, using air conditioning in the summer, leaving lights on unnecessarily, flying and other activities contribute to carbon emissions. You can also teach people how to reduce the environmental impact of these activities.

23. Local eco-friendly recycling business

Chances are that your town’s department of public works oversees a public recycling program. However, many experts say that what you put in your recycling bin doesn’t always get recycled. Some municipalities don’t accept all types of recyclable containers, while others may not thoroughly sort the collected recycling. Open an eco-friendly local recycling business to guarantee your community that their goods are recycled.

Enhance your recycling business by refurbishing old technology like computers and printers.

What are the benefits of starting a green business?

Great reasons to start a green business include the following:

• Green businesses have a built-in target audience. In 2020, 65 percent of people who responded to a Pew Research Center survey said the government wasn’t doing enough to combat climate change. Your business can target this vast consumer base and fill in the gap.
• Green businesses attract top talent. Many of the 65 percent of people who think climate change needs to be addressed more aren’t just customers — they’re workers too. These people might inherently be more inclined to work for a green business like yours. Your green business pedigree can help you attract and retain top talent and boost employee retention efforts.
• Green businesses have built-in marketing copy. Your eco-friendly offerings and environment-first mission statement are exactly what green shoppers are seeking. This makes writing marketing copy and devising campaigns uniquely intuitive.
• Investors may be interested in your green business. Venture capitalists and angel investors often seek out the most innovative, unprecedented businesses to fund. Given the scope of the climate crisis, innovative green businesses may attract their attention. This is why launching a green company goes hand in hand with accessing business funding.

Given consumers’ increasing prioritization of sustainable products, services and companies, your business plan might be crystal-clear when launching an eco-friendly company.

What is a green industry business?

A green industry business uses sustainable materials to make its products. Green industry businesses aim to use as little water, energy and raw materials as possible while cutting carbon emissions, or they use these materials in renewable and eco-friendly ways. This business approach minimizes the company’s strain on natural resources and contributions to climate change. In some cases, if waste is generated, it is reused as energy or raw material.

What is a green business model?

With a traditional business model, a company outlines raw material budgets, design processes, and service delivery or product distribution methods. A green business model ensures ample revenue while prioritizing minimal environmental impact over maximum profit. It may involve the restricted use of fossil fuels while emphasizing power supplied by solar panels, as well as other approaches to drastically reduce energy consumption.

How do I start a green business?

As consumers have come to care about corporate social responsibility , a greater number of green businesses have emerged. However, the problems that climate change poses require many solutions. Thus, to start a green business, identify an eco-friendly service that no one in your market currently offers. Next, think of similarly eco-minded people who can join your team. 

As you launch your green business, change your lifestyle to reflect its values and services.

Get creative with your green business ideas 

Green business ideas can be great business ideas that merge sustainability and profit. This list is just a start. Get creative and even merge business ideas to create unique companies that provide one-of-a-kind green services. For example, you can offer recycling or donation alongside your professional organizing services. This way, once you’ve organized your clients’ homes, you ensure that whatever they’re not using anymore doesn’t go into a landfill. If you have a passion for protecting the environment, anything is possible.

Sammi Caramela contributed to this article.

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US surpasses renewable energy goal for public lands

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WHY IT'S IMPORTANT

By the numbers.

• The Interior Department has permitted nearly 29 GW of clean energy on public lands - enough to power more than 12 million homes.
• The Bureau of Land Management, which manages 250 million acres of federal lands, has permitted more than 7 GW of projects since 2021. The agency is processing permits for an additional 32 GW of renewable energy.
• The finalized Renewable Energy Rule will reduce fees for solar and wind projects on federal lands by 80% while streamlining the application process.

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Natural gas will still be needed for electricity generation in California's clean energy transition, Edison International chief Pedro Pizarro said on Tuesday at an industry conference.

World Chevron

Trump's criminal hush money trial has its first seven jurors

The first seven jurors were selected on Tuesday to serve on Donald Trump's hush-money criminal trial, as the selection process continues to choose a panel of 12 members and six alternates who can be fair to the former U.S. president.

Renewable Energy Update 4.08.24

DOE announces tax credits to accelerate clean energy

Solar industry magazine – april 1.

The U.S. Department of Energy, Department of Treasury, and Internal Revenue Service have authorized $4 billion in tax credits for 100 domestic projects aimed at accelerating renewable manufacturing at industrial facilities. The agencies are partnering to implement the Qualifying Advanced Energy Project Tax Credit (48C) funded by the Inflation Reduction Act. For selected projects to receive the tax credit, information will need to be submitted to the 48C portal within two years to certify the project.

Rocky Mountain Power updates energy plan, pushing back on renewables

Ksl – april 2.

Rocky Mountain Power, a subsidiary of PacifiCorp., has updated its 2023 Integrated Resource Plan. The company’s initial resource plan called for the retirement of Utah’s last two remaining coal-fired power plants by 2032. Under the updated plan, the plants won't cease operations until 2036 and 2042, reverting back to the vision laid out in the 2021 plan. Additionally, the company’s updated plan also calls for less renewable energy development than the original version.

U.S. DOI approves Avangrid’s 2.6 GW New England Wind offshore project

Power technology – april 3.

The U.S. Department of the Interior (DOI) has approved Avangrid’s 2.6 GW New England Wind offshore wind farm, the country’s eighth commercial-scale offshore wind energy project. New England Wind will be built in two phases with 129 wind turbines and five offshore export cables, and will power 900,000 homes.

Leeward, Microsoft strike PPAs for 400 MW of Texas solar

Data center dynamics – march 28.

Leeward Renewable Energy has entered into two 200 MW power purchase agreements (PPAs) with Microsoft. The company will purchase the power generated from two 200 MW Leeward Renewable Energy solar facilities currently under development in Texas: Morrow Lake Solar in Frio County, and Cradle Solar in Brazoria County.

USDA investing $76.5M to bring clean energy to Navajo Nation

Abc4 – march 26.

The U.S. Department of Agriculture - Rural Development is investing $76.5 million to expand the Red Mesa Tapaha Solar Farm. The expansion is expected to provide clean energy to approximately 36,000 homes, businesses, and farms — in addition to providing more than 200 local construction jobs.

Seattle company proposes new solar farm near Tri-Cities

Tri-city herald – march 28.

A Seattle company is proposing a solar farm south of the Tri-Cities that could generate power each year for about 13,000 homes. Wallula Gap Solar is the fourth solar project in Benton County now seeking a permit to build through the Washington state Energy Facility Site Evaluation Council.

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The buildings that provide our homes, offices, schools, restaurants, and other services use a lot of energy. In fact, homes and commercial buildings consume  75% of all electricity in the United States and 40% of our total energy .

The Loan Programs Office (LPO) can be a financing resource for projects that will make a significant impact on building energy consumption—particularly where projects are seeking to achieve important policy frameworks, such as compliance with state or local Building Performance Standards (BPS) laws.

LPO also has important limitations and requirements that governmental partners and project companies should consider carefully. 

How LPO Can Help

LPO can finance projects that utilize an eligible technology as set forth in Section 1703(b) of the Title 17 Clean Energy Financing Program . Relevant technologies might include renewable energy systems, efficient end-use energy technologies, and energy storage technologies.

For these projects, LPO will most likely be used to support energy work on a large portfolio of buildings, rather than a single building or several buildings. That is due to a variety of factors, including:

• The more limited scope of eligible costs that LPO can finance relative to the scope of some building projects.
• The requirement that LPO debt must be senior and cannot be subordinated to any other debt on a project, despite having a more limited scope.
• Costs of due diligence during the LPO application process, which typically run to several million dollars, as well as pricing.  
• To expand on the question of scope, LPO might finance the installation of efficient appliances, solar, storage, and charging infrastructure on a portfolio of buildings. Each of those elements will have construction costs, for example, some of which may be eligible to be included in the costs that LPO would finance. 

Nevertheless, LPO has limitations on what can be considered an eligible cost. On a project that seeks to install solar and storage, for example, it is likely that LPO could not finance roof repair or replacement.

In these applications , LPO will consider the applicant’s Independent Engineering report for evidence of how various costs are necessary to meet the policy and regulatory framework as well as to support the functioning of the technology—costs that are "necessary, reasonable, customary and directly related" (10 CFR 609.10(a)) to an eligible project.

Some projects include costs that are eligible for LPO support and other costs that are not. LPO can potentially offer a partial guarantee of a commercial loan that covers both categories of costs, provided that the guarantee is limited to the amount of costs that are eligible for LPO support.

It is also worth noting that LPO loan guarantees can potentially be collateralized by income from service contracts rather than hard assets. 

Federal Requirements

There are a variety of federal requirements that attach to all projects financed by LPO. Examples include the Davis-Bacon Act , National Environmental Policy Act (NEPA), and Cargo Preference Act ; for nonprofit and government borrowers, the Build America, Buy America Act applies.

The environmental impact of all projects will be reviewed for NEPA compliance. Projects that involve minor modifications on existing buildings, however, may qualify for a categorical exclusion. Building additions and new construction typically require at least an environmental assessment. LPO will review Part II applications submissions and work with the applicant to determine the level of NEPA review for each project before entering due diligence.

Another important point to consider is that projects cannot benefit directly or indirectly from other federally appropriated funds. A grant from DOE or another federal agency, for example, cannot be part of the project finances. Tax credits that the project is otherwise eligible for, however, are allowable.

Additional Resources on this Topic

Building Performance Standards Webinar (slide deck)

Cargo Preference Act: What You Should Know (slide deck)

LPO and the National Environmental Policy Act (NEPA), Ensuring Informed Environmental Decisions for Communities (blog)

Engaging With LPO Early on NEPA Requirements for Applicants (blog)

Pricing for LPO Financing by Program (blog)

Greenvolt Group, international operator in renewable energy enters Romanian market

Greenvolt Next, the company of the Greenvolt Group specialized in Distributed Generation solutions, is committed to installing 110MW of renewable energy and aims at creating 100 jobs, in Romania, in the next three years, through a new and innovative Business model. The group, a leading international operator in the renewable energy market through multiple technologies, enters the Romanian market in the Distributed Generation segment.

“The launch of Greenvolt Next Romania represents a natural step in the growth of the Group’s pan- European self-consumption platform. Leveraging on the experience that Greenvolt already has in the wind and solar utility scale in Romania, we recognize that there’s a strong Renewable Energy Solutions potential in the country, and its ambitious deployment targets make us believe that  Romania can be at the forefront of the decentralized energy revolution.” said Joao Manso Neto, CEO Greenvolt Group.

The company brings a new and innovative model to the market that will offer many benefits to the end user. With the model Power Purchase Agreement (PPA), Greenvolt Next allows businesses to do the installation of photovoltaic panels without an initial investment, and at the same time ensure renewable energy at a low and predictable cost for our partners.

“In order to meet the growing needs of Romanian companies for self-production and consumption of electricity, we have chosen to focus on the construction of photovoltaic plants with the innovative Power Purchase Agreement modality. This is to guarantee a long-term supply of electricity from renewable sources at advantageous economic conditions and without any investment and concerns about the management, insurance, and maintenance of the solar plant, being able to have energy at  prices independent of the energy market, cancelling or minimizing the risks related to expensive energy. An important tool with a view to the energy transition that from today, thanks to the  presence of Greenvolt Group, we will be able to further develop”, added Filipe Dias, Country Manager of Greenvolt Next Romania.

Greenvolt Group is one of the leading players in the renewable energy sector through multiple technologies. In addition to producing energy from sustainable biomass forest residues and urban wood waste in Portugal and the UK with Greenvolt Biomass, through Greenvolt Power it is acting as a developer of Utility Scale Wind, Solar photovoltaic, and Energy Storage projects, operating in many markets in Europe, North America and more recently in Asia, with a global pipeline of 8.4 GW. In 2023, the segment reached 91.5 MWp of capacity installed and accumulated a backlog of 216.3 MWp by year-end, with 66.7 MWp secured for installations via Power Purchase Agreements (PPAs), demonstrating the company’s dedication to innovative financing in distributed generation.

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Public funds to incentivise manufacturing and clean energy projects, Prime Minister Anthony Albanese says

Live Moment Public funds to incentivise manufacturing and clean energy projects, Prime Minister Anthony Albanese says

Prime Minister Anthony Albanese says Australia must stay in the "global race" for jobs, as he prepares to detail a taxpayer-funded incentive scheme for advanced manufacturing and clean energy projects.

The "Future Made in Australia Act" will seek to compete with US President Joe Biden's massive spending plans under the US Inflation Reduction Act.

Mr Albanese said it would consolidate existing efforts under one banner, including Hydrogen Headstart, Solar Sunshot and the government's $15 billion National Reconstruction Fund.

"We know during the pandemic, we learnt the risks of what happens if we're cut off from trade. We can't afford to not be able to stand on our own two feet," Mr Albanese told Channel Seven.

"And we saw manufacturing leave this country in the 70s and 80s. We want to bring it back."

The prime minister will make the case for the Future Made in Australia Act in a major speech on Thursday, setting out his agenda for the next year leading up to an election.

He will warn Australia's economy will suffer without greater government intervention, as other nations draw "an explicit link between economic security and national security".

Mr Biden's landmark Inflation Reduction Act includes hundreds of billions of dollars in tax breaks and subsidies over the next decade, aimed at boosting clean energy infrastructure and encouraging high-tech manufacturing.

"Obviously, Australia cannot go dollar for dollar with the United States' Inflation Reduction Act," speech notes provided by the prime minister's office state.

"But this is not an auction – it's a competition.

"And Australian can absolutely compete for international investment when it comes to our capacity to produce outcomes, the quality of our policies and the power of our incentives."

The federal government has been urged to do more to entice investment in renewable energy and critical industries, amid warnings the US could hoover up available international capital under its own plans.

The prime minister has frequently referred to his desire to see Australia step up in areas such as battery and solar panel manufacturing, harnessing the materials mined in Australia but currently exported overseas for processing.

Mr Albanese will reference efforts from the US, European Union, Japan, South Korea and Canada to strengthen their own critical industries.

"All these countries are investing in their industrial base, their manufacturing capability and their economic sovereignty," the prime minister is expected to say.

"This is not old-fashioned protectionism or isolationism – it is the new competition.

"These nations are not withdrawing from global trade or walking away from world markets or the rules-based order, and let me be clear, nor should Australia."

Live Moment

Look back at how ABC readers and other Australians responded to this live moment.

That concludes the PM's address

Thanks for joining us for the live moment.

We'll leave our live coverage here.

How will the new act impact the economy?

The PM has been asked:

How do you expect the plan you unveiled today to impact the economy at a time when inflation is approaching the RBA's target range?

Here's what Mr Albanese says:

"It is about encouraging private sector investment, it is about making sure as well that all of the measures that we have put in place, including all of our cost of living measures, have been aimed at areas that would not contribute to inflation."

The risk of increasing power prices

The PM has been asked whether there is a risk an energy transition would be costly and cause power prices to increase.

"That is what is driving the change," Albanese says. "In terms of where that new investment will go. So we want to create an environment whereby we provide support but we acknowledge the importance of market mechanisms and what that means is investment in renewables will lead to cheaper power because that is what every economist tells us."

Wondering what this is? Join us next time we're live and be part of the discussion.

Not the invisible hand, nor heavy-handed either, PM argues

In a pre-emptive strike against critics who would argue against taxpayer funds being spent, Mr Albanese will make the argument that Australia's partners are "moving to the beat of a new economic reality."

"None of this is merely being left to market forces or trusted to the invisible hand," he is expected to say.

"The heavy lifting of economic transition and industrial transformation is not being done by individuals, companies or communities on their own.

"It is being facilitated, enabled and empowered by national governments from every point on the political spectrum.

"Because this is not about ideology, it's about opportunity – and urgency."

The Future Made in Australia Act would focus on boosting investment in areas such as rare earths mining and processing, hydrogen and solar energy production.

"We recognise that for Australians to share fully in the rewards, government needs to be prepared to use its size and strength and strategic capacity to absorb some of the risk," the speech notes state.

"Only government has the resources to do that, only government can draw together the threads from across the economy and around our nation."

Casting forward to budget

Ahead of the federal budget on May 14, the prime minister will argue the policy complements other measures, such as revised income tax cuts, to improve productivity across the country.

"The first four years of this decade have tested the resilience of our economy and our society alike," he is expected to say.

"Alongside the devastation of floods and bushfires, Australia has endured a once-in-a-century global pandemic and the biggest international energy crisis in 50 years.

"Government needs to have this same capacity to respond and adapt, to anticipate change – and shape it – when it comes to building for the future."

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Mahindra Group to invest Rs 1,200 cr in renewable energy, set up 150 MW hybrid project

The hybrid project will be developed by mahindra susten, which is part of the group, and will have global investor ontario teachers’ pension plan board as a strategic partner..

• Updated Apr 15, 2024, 3:30 PM IST

Mahindra Group announced on Monday that it will invest Rs 1,200 crore for renewable energy in the country and develop a 150 MW hybrid RE project – solar + wind. It said it is committed to operating ‘Planet Positive’ businesses, and was one of the first companies to adopt 100 per cent renewable energy by 2030 across various businesses. 

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The hybrid project will be developed by Mahindra Susten, which is part of the group and a key player in the renewable Independent Power Producer (IPP) space. The project will have global investor Ontario Teachers’ Pension Plan Board as a strategic partner. 

Shares of Mahindra & Mahindra Ltd (M&M) were trading 0.90 per cent lower at Rs 2,051.50 in fag-end deals. Turnover on the counter was at Rs 7.17 crore, commanding a market capitalisation (m-cap) of Rs 2,55,085.07 crore.

According to the exchange filing by the company, the installation will include 101 MW wind capacity and 52 MW solar capacity. It is expected to generate 460 million kWh of energy, which the company expects would abate 420,000 tonnes of CO2 emissions. 

This project would also be Mahindra Susten’s foray into ‘hybrid RE’ space. The project would be one of the largest co-located solar + wind hybrid projects in Maharashtra. It will deliver clean energy to Commercial and Industrial (C&I) customers. 

The hybrid project will be commissioned within the next two years, and will integrate more than 80 per cent locally manufactured components, and create a robust domestic value chain. 

Dr. Anish Shah, CEO & MD, Mahindra Group said,  "Energy transition is a key global and national priority to address climate change. This project is a tangible example of our commitment to sustainability, as a consumer of green power, and building ‘Planet Positive’ businesses, as the developer of the project. It also demonstrates a clear economically accretive business case and Group synergy. The project marks a key milestone in Mahindra Group’s continued investments in building and scaling its green portfolio."

Mahindra’s Auto & Farm sectors have signed contracts within this project for capacity of 41.20 MW wind and 25.90 MW solar. The project is projected to generate 197 million kWh of energy annually and reduce CO2 emissions by 184,000 tonnes. This initiative is anticipated to raise M&M's Renewable Energy (RE) share from 34 per cent in FY23 to 60 per cent in FY26.

Veejay Nakra, President, Automotive Division, M&M, calling this project a win-win for sustainability and business strategy, said that as the auto business invests to increase capacity and shifts towards a greener portfolio with multiple EVs, they want to ensure that their emissions come down too. 

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