Yet while money may be flowing away from many fossil fuel investments, investing in solar projects has traditionally been somewhat cumbersome—requiring significant capital, legal expertise, and industry connections. For property owners and would-be developers, going solar has been stymied by barriers in the way of access to capital.Whether it is solar-backed bonds or peer-to-peer lending platforms, we are beginning to see new solutions aimed at addressing these challenges.
Wunder Capital—a company backed by the Techstars accelerator program—can now be added to that list, having created what it claims to be the "first real opportunity to invest in solar and earn strong returns."
And here's a little more about how it actually works:
It sources projects from its national network of solar installer partners, rigorously assessing each deal using its proprietary software to examine underlying property fundamentals, such as vacancy rate, property value, and shade coverage instead of credit scores. Selected projects are pooled into one of its online funds into which any accredited investor can commit as little as $1,000, benefiting from an instant, diversified solar portfolio. Investors are expected to earn 6% in annual returns, greater than green bonds and most yield cos.
And in case you like pictures and all that, they sent me this infographic below to explain more. I should note, as stated in the quote above, that their target is accredited investors—meaning, presumably, that the platform is not covered by the typical SEC protections offered for us paupers.
Still, it's cool to see new tools being developed to connect people with money to people with panels. I expect there will be many more such services and products to come.