Impact Investing: Healthier Wallets & A Healthier Planet
Traditionally, investments are laser-focused on one thing: profits. Where can you make the most money in the shortest amount of time? Where is there a return on investment that feels almost guaranteed? Well, not all investment strategies are so profit-oriented. Some have more on their mind. What about investing in something that generates social or environmental benefits in addition to financial gains? That’s what impact investing is.
The term was coined in 2007, but the idea existed long before that. Some consider impact investing a branch of philanthropy because it benefits others who are not investors.
Clean energy has been one of the most popular industries for impact investing over the last 20 years. Inventors, product developers, and investors are all searching for the magic bullet to save us from the uninhabitable planet that seems to be looming in our future.
There is more capital available than there are projects to spend it on. The reason why is the lack of construction-ready projects. What would make a construction-ready power plant, for example?
Development is complete (site control, entitlements, etc.)
Construction can be completed profitably
Most clean energy projects are not construction-ready, so there is more capital than there are projects to spend on.
You aren’t a gigantic investment firm looking to invest billions into new clean energy technology. You want to make an investment that benefits other people or the planet while providing you with reliable returns. It’s a win-win. What better way to accomplish this than by investing in a solar development project for a Non-Profit organization?
This is an impactful investment with reliable returns, and SDC’s solar development projects are also construction-ready. They carry far less development and construction cost than other impact investing opportunities, meaning less risk and faster turnaround.
We need to find ways to invest in projects like these rather than focusing only on the magic bullet. We need to properly implement new technologies as they advance rather than waiting on the one life-saving technology that we hope to find and then expect to be able to execute quickly. The journey to saving our planet will require many steps of progress and not just one giant leap to the destination. We are proud to be one of those steps toward a cleaner future.
