Organization Financing

How do enterprises finance their energy work?

Many, once they are successful, are able to cover costs and be profitable through sale of their products and services. But how do they get capital for start-up, project implementation, and overhead?

Some are financed by grants and donations.

  • Some are non-profits designed to remain dependent on donor funds.
  • Some start out grant-funded, but aim to become profitable businesses offering investors returns when they reach a certain scale.

Some receive loans and equity from the beginning.

  • These may be private-market rate investments
  • They may also be ‘soft’ investments from non-profits and foundations trying to encourage market solutions.

Some enterprise founders operate other businesses or use their own money to subsidize the business until the model is worked out.

A few energy enterprises have been able to finance themselves through the sale of carbon offsets.