The renewable energy crowdfunding industry is going mainstream in the UK, and the regulatory frameworks are being established across the EU that will allow for the rapid growth of the sector over the rest of the decade.

by Karl Harder /// Managing Director – Abundance Generation

[…] At a time when renewable energy subsidies are being reduced, being able to offer tax-free returns should reduce the cost of borrowing money through crowdfunding for project developers, making crowdfunding a more attractive option.

It is not just in the UK that the market is developing. Across Europe the regulation is falling into place to support the growth of the sector. Lumo in France has been waiting for approximately four years for French regulations to come in and, though the French crowdfunding regulation is far from perfect, it went live this year, giving Lumo the chance to get started and grow their business. Germany has also been tweaking its financial services regulation to support the emerging crowdfunding sector. Other countries that already have supportive regimes such as Holland are seeing solid growth of their renewables focused platforms.

At the local level the market looks set to flourish over the coming years. On the European level, though, there will be an increased policy focus in order to try to harmonise regulation across the EU, making it easier for citizens to invest across borders. […]

Keep reading this article on the website of the Imperial College London.