At first glance, crowdfunding feels like a perfect match for clean energy. It’s democratic. It’s digital. And it invites people to be part of the solution.

But when we zoom out to the scale of infrastructure required to meet global climate goals, a hard truth surfaces: crowdfunding hits a wall.

Let’s explore why.

1. The Scale Problem

A typical utility-scale solar or wind project costs anywhere from $20 billion to $40 billion. Crowdfunding campaigns, even the successful ones, rarely raise more than a few million dollars.

To bridge that gap through retail investors, you’d need millions of people contributing small amounts—coordinated through a complex web of education, compliance, trust, and ongoing support.

At that scale, crowdfunding doesn’t just become inefficient. It becomes infeasible.

2. High User Acquisition Costs

Here’s a lesser-known truth: the Customer Acquisition Cost (CAC) in clean energy crowdfunding is high. Why?

• Each investor needs hand-holding: trust-building, education, compliance.

• But they often contribute less than $1,000.

• After all that effort, many users don’t come back for a second investment.

Image: Test Results for Age Group and Investment Amount in Crowdfunding via [Exploring Crowdfunding as a Financial Mechanism for Sustainable Renewable Energy Projects in Marginalized Regions of Kenya: A Systematic Review.]

Because users rarely invest again, platforms don’t benefit from lifetime value. The funnel leaks at every stage, which makes scaling nearly impossible without massive subsidy or institutional backing.

3. Returns Are Slow

Crowdfunding success depends on investor engagement, trust, and repeat participation. But energy infrastructure doesn’t deliver the kind of user experience that drives this behavior.

Let’s break it down:

• Returns are slow and modest: Clean energy yields typically sit at 5 to 8 % per year, with payback periods stretching over 5 to 10 years.

• Emotional connection is weak: Investors rarely see or experience the asset they’ve funded. There’s no personal utility or lifestyle impact.

• Drop-off is high: Data shows fewer than 15 % of users return for a second investment. Referral rates remain low.

This kind of return doesn’t feel rewarding.

So, Where Does Crowdfunding Work Best?

• Community-scale projects where investors see direct local benefits.

• Early-stage innovation - think pilot projects or new tech.

• Engaged user bases who are also project beneficiaries (like energy cooperatives).

But for large-scale clean energy infrastructure, we need:

• Institutional capital with higher risk tolerance.

• Blended finance models that combine public and private funds.

• Tokenization and automation to reduce friction and scale participation smartly.

The Bottom Line

Crowdfunding is a fantastic tool for building community, raising awareness, and supporting small-scale green projects. But when it comes to funding the massive infrastructure needed to power the planet, it’s only one piece of the puzzle.

That’s where Penomo steps in. Unlike traditional crowdfunding, which relies on many small, one-time contributions, Penomo uses blockchain and tokenization to make investing in renewable energy accessible, secure, and scalable. Investors can own fractions of real assets, trade them easily, and benefit from transparent, real-time reporting. This approach delivers capital to projects faster, at lower cost, and with greater security than traditional crowdfunding.

Discover how → www.penomo.com

About Penomo

Penomo is a digital asset infrastructure platform specializing in tokenized energy and AI infrastructure financing. By transforming physical infrastructure into compliant digital securities, we connect private capital markets with institutional-grade renewable energy and AI investments. Through tokenization, Penomo is streamlining capital access, enhancing liquidity, and enabling efficient financing for the global energy transition and AI expansion.

The time to lead is now! Learn how Penomo can help you.

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