Imagine an investment that offers more than just financial gains— one that can spark joy, empower communities, and foster global change. This is the pursuit of many socially-driven investors who channel their funds into ‘nonprofit’ avenues, such as Kiva.org. Kiva.org leverages microfinance to enable access to funding for individuals beyond the reach of traditional lending institutions, impacting lives around the world.
Renewables.org: A New Frontier in Nonprofit Investments
Adding to the landscape of socially responsible investments is an organization that mirrors the philosophy of Kiva.org, with the added mission of driving solar energy projects in the Global South. The initiative is spearheaded by Premal Shah, a co-founder of Kiva, who brings a wealth of experience in micro-investments to the table. The initiative’s goal is to erect solar infrastructure ‘where it matters most,’ maximizing the ‘carbon multiplier effect’ in regions prone to higher carbon emissions due to reliance on coal and diesel, such as India and Africa.
Understanding the Carbon Multiplier
The Carbon Multiplier stands at the core of Renewables.org‘s mission. This metric’s purpose is to measure how clean electricity in the Global South can displace significantly more carbon than in countries like the U.S. This is due to the heavy dependency on fossil fuels in the Global South’s power grids, amplifying the impact of each clean kilowatt-hour produced.
- The energy landscape in the U.S. features a broader clean energy mix compared to the more prevalent diesel and coal-based generation in the Global South.
- Carbon emissions from generating electricity in the U.S. range between 0.5 to 1 pound per kilowatt-hour, while counterparts in the Global South average around double this amount.
- Renewables.org uses the Carbon Multiplier in conjunction with the Impact Multiplier to guide their investments in maximizing carbon prevention.
Join the Renewable Energy Investment Movement
Accessibility is a cornerstone of Renewables.org’s strategy, allowing investors to join their cause with micro-investments starting at just $25 for a 5-year term, at 0% interest. This opens the door for broader participation from individuals who might otherwise be excluded from such impactful ventures.
A Sustainable Investment Cycle
Contributions made through Renewables.org are channeled into a fund that extends loans for the development of high-impact solar projects. These projects commit to a market-rate return of 5 to 10% to the organization. This interest is strategically used to cover operational costs. Meanwhile, the principal amount of the loan is systematically repaid to lenders over the course of the 5-year term. Thus, Renewables.org not only furthers sustainable energy production but also sustains its business model to keep driving global change.
