Empowering a cleaner future through renewable energy crowdfunding and impact investing: Energy Shares, LLC

“This is actual impact investing. By concentrating on clean energy projects, every invested dollar yields a tangible environmental impact. We can estimate the reduction in carbon emissions based on the clean energy produced by the invested projects.”

Energy Shares, LLC, operates as a FINRA-registered broker dealer and an equity crowdfunding platform, revolutionizing access to utility-scale renewable energy projects in the United States. Their approach leverages the JOBS Act to broaden investment opportunities and to break away from the exclusive domain of institutional and accredited investors. In the
pursuit of democratizing renewable energy investments, traditionally a privilege of a select few, Energy Shares passionately believes in the urgency of addressing global climate change. They are committed to leveraging their platform to empower a diverse range of investors, enabling them to actively contribute to the funding of renewable energy initiatives.

Headquartered in Pasadena, California, Energy Shares serves as a centralized hub where investors and project developers converge to facilitate funding for projects. It is a transformative fintech platform with a primary focus on utility-scale renewable energy investments in the US.

In an exclusive interview with The Silicon Review, Daniel Kim, CEO of Energy Shares, LLC, highlighted the company’s mission to empower individuals, companies, and trusts with the opportunity to engage in renewable energy project funding, starting with as little as $500.

The Inception of Energy Shares, LLC

The roots of Energy Shares trace back to its parent company, Solariant Capital, founded 11 years ago with a mission to hasten the adoption of renewable energy in the battle against climate change. Functioning as a utility-scale renewable energy developer, Solariant Capital has successfully executed 13 projects over the years, with an additional 20 projects currently in various stages of development both in the U.S. and overseas.

Recognizing a critical impediment in the journey toward a complete transition from fossil fuels to renewable energy, the company identified the funding challenges inherent in development projects. Typically, investment in the development stage has been the purview of a select few large private equity funds that have dominated the space for over three decades.

“We realized the key factor that could accelerate the energy transition is providing access to a larger pool of capital to developers. Through Energy Shares, we aim to democratize investing in this asset class, allowing the investing public to directly participate in the energy transition while providing access to much-needed capital for the project developers,” says Daniel Kim.

Democratizing Renewable Energy Investments

As an innovative FinTech equity crowdfunding platform, Energy Shares focuses on renewable energy projects and other related infrastructure projects in need of capital. The company connects developers and project owners with retail investors interested in making impact investments.

While initiatives like ESG Investing are sometimes criticized for potential ‘greenwashing’ – presenting companies as more environmentally responsible than they are – Energy Shares aims to deliver actual impact. “By concentrating on clean energy projects, every investment has a tangible environmental impact. We can estimate the reduction in carbon emissions based on the clean energy produced by the invested projects,” explains Daniel Kim.

Daniel adds, “Take, for instance, our partner’s utility-scale project, New River Solar, in Florida. Just a $1,000 investment in this project equates to the carbon absorption of approximately over 2,900 trees, powers 3.6 homes through renewables, and takes 6.2 cars off the road.”

“Our focus on development-stage projects allows us to prioritize the phase of renewable energy production with the potential for the most significant impact—not only in terms of potential financial returns for investors but also in terms of climate impact*.”

*It’s important to note that these investments often come with higher risks and a longer investment horizon, making them better suited for those willing to endure uncertainty and potentially loss of all principal.

Cultivating a Dynamic Innovation Ecosystem

Energy Shares implements various innovative strategies to enhance innovation in their company. The company typically follows two different approaches to improve innovation:

• Data-Driven Innovation at Energy Shares: As a startup, Energy Shares adopts a proactive approach to testing and swift adaptation. Data takes the lead in shaping decisions, offering insights into user preferences and areas for improvement. Utilizing data and taking prompt actions enable the team to make informed decisions, optimize processes, and undergo multiple pivots in micro-strategies, all driven by rigorous data assessments.

• Experimental Mindset - Embracing Failure for Innovation: Embedded in Energy Shares’ culture is an experimental mindset that encourages team members to embrace risks and experimentation. Despite the inherent risk of failure, the team is consistently challenged to explore new ideas. The primary focus during the early stages of growth is on learning, creating an environment where failures are seen as valuable opportunities for gaining insights and propelling innovation forward.

“We seek out people who are constantly asking questions, exploring new ideas, and seeking creative ways to solve problems. That way, when the industry evolves and regulations change often, we can adapt and adjust our strategies to make sure we’re still well-positioned to succeed.”

Unmatched Expertise in Renewable Energy Crowdfunding

With regards to renewable energy projects, Energy Shares and Solariant Capital possess comprehensive knowledge of the product. Their team members boast extensive experience in project development, supported by proven track records. “We understand the renewable energy project development process inside out, which means we can evaluate the project status, feasibility, and risks better than any other crowdfunding platforms that do not have such experiences.

“Additionally, we don’t just stop at raising capital. As a Project Manager, Solariant Capital continues to look out for the investors’ interest by working with the developer to ensure the project’s success.” 

Road Ahead

“We had a busy 2023. Since our recent platform launch, we’ve been working diligently to reach out to renewable energy developers across the U.S., all the while growing our user base of potential investors. Our goal for 2024 is to continue educating investors about the benefits of our direct impact investing and fund as many projects as possible. We are also expanding the types of renewable energy project offerings one can invest in because one size doesn’t fit all.”

“For example, the passing of the Inflation Reduction Act (“IRA”) has ignited even more opportunities with tax credits related to renewable energy projects. This year, we plan to incorporate a tax credit fund through Energy Shares to provide users access to discounted tax credits.”

“The global renewables industry has experienced rapid growth, and this trajectory is expected to intensify as governments worldwide commit to climate pacts and goals aimed at combating global warming. Nevertheless, the attainment of these goals and targets hinges on essential funding from the general investing public, extending beyond reliance on a select few large private equity funds,” concludes Daniel Kim. 

Daniel Kim | CEO

In 2012, Daniel Kim founded Solariant Capital (formerly Solariant Inc) to pursue renewable energy project development opportunities in Japan. Mr. Kim led the development teams to successfully develop, finance, and construct 13 utility-scale renewable energy projects and is currently leading development teams in four countries, overseeing the progress of more than 20 renewable projects. In the U.S., the Solariant Capital team is developing 14 utility-scale projects with 1.8 GWdc of solar and 2.8 GWh of battery energy storage capacity.

In January 2019, Mr. Kim launched the Solariant Renewable Energy Fund I, which invests in development-stage renewable energy projects. Before founding Solariant, Mr. Kim’s background was primarily in finance, having worked in project finance, equity research, and fixed income for investment banks and energy development, as well as life insurance companies. Mr. Kim holds a CFA Charter from the CFA Institute.

Disclosures:

“Energy Shares, LLC (Energy Shares), a FINRA registered broker dealer, is a subsidiary of Solariant Capital and an affiliate of New River Solar, LLC. Energy Shares is building a platform for utility scale renewable energy projects in the United States to raise capital. Energy Shares is not facilitating the offering for New River Solar but to learn more about the industry in general, please visit energysharesus.com.”

“Energy Shares, LLC (“Energy Shares”), its directors, officers, employees, representatives, affiliates or agents do not provide business, investment, tax, or legal advice. No communication contained herein should be construed as a recommendation to purchase any security and content published are for informational purposes only. Energy Shares, its affiliates, and employees makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this communication and any liability therefore is expressly disclaimed. Any investments referred to in the article by Energy Shares employees and affiliates are privately held securities that are being offered via private placement. These securities are a high risk investment, not publicly traded, highly illiquid, speculative, and an investor could experience an entire loss of their investment. These private securities are not suitable for all investors and there is no guarantee an investment will be profitable or that there will ever be an exit strategy or an opportunity to liquidate the investment. When making an investment decision, investors must make their own determination and rely on their due diligence and examination of the issuer, the investment offering documents, and the terms of the offering. Energy Shares is a FINRA l SIPC member.”