Energy access crowdfunding reshaped by innovative models and shifting sector trends
Insights from ‘Crowd Power State of the Market 2024-2025’ report
In 2024, energy access-related crowdfunding continued to demonstrate adaptability, with new financing models and growing investment in commercial and industrial (C&I) solar projects reshaping the market. Whilst crowdfunding volumes fell to $42 million (a 13% drop from 2023), pioneering innovations, such as Lendahand’s government-guaranteed export insurance loan and Trine’s profit-share model, opened fresh opportunities for both borrowers and investors.
Debt crowdfunding
Between 2019 and 2023, average volumes in debt crowdfunding hovered close to $50 million annually. Whilst debt crowdfunding has remained the most relevant financing mechanism for energy access projects, accounting for 94% of funds raised, volumes dipped to $40 million in 2024. This contraction was driven by reduced activity across several major platforms, though others, such as Goparity and Klimja, saw significant fundraising growth.
By sector, the most striking trend in 2024 was the continued rise of commercial and industrial (C&I) projects, which now dominate the energy access crowdfunding landscape, comprising 67% of funds raised (up from 62% in 2023). Projects in e-mobility followed, accounting for 12%, while volumes in sectors with robust historic activity fell significantly: solar home systems (SHS) to 6%, household energy projects to 14%, and clean cooking to just 3%. Two platforms – Ecoligo and Trine – accounted for 56% of total funds raised with most campaigns funding C&I projects in middle-income countries. The swing towards C&I reflects the tough macro-economic environment, putting platforms under pressure to offer investors stronger risk-adjusted returns while still delivering climate impact.
The regional balance of crowdfunding shifted further in 2024. Sub-Saharan Africa’s share of debt volumes declined from 50% to 42%, while Asia increased from 30% to 39% and Latin America from 18% to 20%. Platforms cite the relative maturity of Asian and Latin American markets, where C&I borrowers often present more attractive investment profiles than their African counterparts.
Innovation spotlight
In 2024, Crowd Power lent valuable support to game-changing initiatives that boosted the dynamism of the sector:
- Lendahand introduced a first-of-its-kind 100% government-backed guarantee structure which enables investors to fund Spark Energy’s solar kits with full principal and interest protection under export insurance provided by the Dutch government. The model proved highly popular, with campaigns in Nigeria and Zimbabwe funding in hours rather than weeks.
- Trine launched a profit-share loan product that tailors repayment to borrower cashflows while offering investors higher returns of 9–13% p.a., compared to the previous 6–8% range. Campaigns under this structure completed funding at more than twice the speed of conventional loan structures.
These innovations highlight how platforms are pivoting in response to global economic challenges while enhancing the appeal of their terms.
Equity crowdfunding
Equity crowdfunding remained modest in scale, raising $2.4 million in 2024. All campaigns came from repeat crowdfunders, reflecting the significant time, effort and regulatory hurdles involved in preparing a raise. However, Swiss company MPower Ventures scored a major win with a $1.9 million raise on the Republic Europe platform.
Outlook
Debt crowdfunding remains the backbone of energy access finance, but the dip in 2024 volumes signals potential headwinds. The sector’s resilience will depend on sustaining investor confidence and broadening the range of borrowers. Nevertheless, innovative models demonstrate that platforms have a strong capacity to evolve, which will be critical to ensuring crowdfunding continues to fund energy access projects delivering lasting impact for underserved communities.