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Renewable Energy Business Plan

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How to Write A Renewable Energy Business Plan?

Writing a renewable energy business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the renewable energy services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of renewable energy company you run and the name of it. You may specialize in one of the following renewable energy businesses:

• Solar energy business
• Wind energy business
• Biomass energy business
• Geothermal energy business
• Hydropower business
• Energy storage business
• Hydrogen fuel business
• Energy efficiency & consulting business
• Describe the legal structure of your renewable energy company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established renewable energy business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your renewable energy business plan::

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the renewable energy products & services your business will offer. This list may include:

• Solar panels
• Wind turbines
• Energy storage systems
• Monitoring systems
• Consultancy & feasibility studies
• System design & engineering
• Installation
• Project financing & funding

Quality measures:

This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your renewable energy plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your renewable energy business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your renewable energy business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for renewable energy, such as for solar energy; solar panels, inverters, racks or frames, solar tracking systems, solar charge controllers, etc are needed.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your renewable energy business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your renewable energy services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your renewable energy business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample renewable energy business plan will provide an idea for writing a successful renewable energy plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our renewable energy business plan pdf .

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Frequently asked questions, why do you need a renewable energy business plan.

A business plan is an essential tool for anyone looking to start or run a successful renewable energy business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your renewable energy company.

How to get funding for your renewable energy business?

There are several ways to get funding for your renewable energy business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your renewable energy business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your renewable energy business plan and outline your vision as you have in your mind.

What is the easiest way to write your renewable energy business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any renewable energy business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a renewable energy business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my renewable energy business plan?

The level of detail of the financial projections of your renewable energy business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Become a Renewable Energy Entrepreneur

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

From photovoltaic solar panels to kinetic energy adapters that generate electricity from pedaling stationary bicycles, entrepreneurs are taking advantage of the green revolution by finding and marketing renewable energy solutions.

Since we use energy for almost everything, the recent trend towards greener, more sustainable technology is creating many opportunities for entrepreneurial-minded individuals.

But is this just a fad? Or are there viable business opportunities for the long term?

Key Takeaways

• Not every entrepreneur is an investor. Consider opportunities for green services.
• Focus on the industries you're most familiar with.
• Consider government financing sources.

Renewables Are Here to Stay

As the global population rises, the reality of finite resources is sinking in. Our energy requirements cannot depend on fossil fuels forever. Advances in technology have allowed us to tap into reserves that were inaccessible in the past, but that only delays the inevitable.

These concerns, along with the negative impacts of burning fossil fuels, have created an environmentally and socially conscious mindset among different sets of economic actors, including consumers, investors, corporations, and governments. Companies and investors looking for profits have taken advantage of consumer interest in cleaner energy alternatives and government-incentivized green business initiatives.

With all these factors driving the shift towards renewable energy, now is the time to start looking for opportunities to help solve the world’s energy problems and, perhaps, make money doing it.

Recognizing the Opportunity

There are innumerable opportunities for implementing an innovative renewable energy solution. However, the best place to start looking is in your own area of expertise. Think about the industries you’ve worked in and how renewable energy could benefit them.

Also, remember that becoming a renewable energy entrepreneur doesn’t mean you have to build your own wind farm or hydroelectric dam. Renewable energy is about more than just electricity generation. It is also about storage, conservation, and distribution.

Product or Service?

You also don’t need to invent a new product or technology. You can get involved in installation, repair and maintenance, or consulting.

Think broadly, and focus on your areas of expertise.

Finally, brainstorm with friends, family, and colleagues about things that people want or need.

Some people build a business around an idea and then try to sell that idea rather than building the business around something people already want to buy. Green consumers are no different.

Green Consumer Challenge

Despite all the hype about environmental sustainability, the evidence suggests that green consumers look for the same things most consumers want: individual benefit at a low cost.

Although the environmentally conscientious market, labeled LOHAS (Lifestyles of Health and Sustainability), is growing, the green market is still relatively niche. Marketing to everyone else means educating consumers on the advantages of renewable energy, including showing them how it can add value to their lives at a lower cost.

Beyond the LOHAS

Consumers are not the only group that one needs to consider when looking for the right opportunity. Think about how the product or service will affect or be affected by others, such as suppliers, the government, the competition, and financing organizations like banks.

All of these actors could have an impact on the success of your business, so it is helpful to think about the role they will play while you’re in the development stage .

Developing a Business Plan

In devising a business plan , it is helpful to determine if there are other businesses in other regions of the world that are already offering a similar product or service. Look at the fundamentals of those businesses and use them as models for developing your own plan.

The percentage of entrepreneurs who invest some personal savings in the early stages.

Regardless of how extensive you decide to make your business plan, you definitely need to do some initial market research and summarize a business concept. You will want to analyze costs, make revenue projections, and set out some key milestones for developing and launching your business.

Talk to Potential Customers

Remember to conduct interviews with potential customers in order to get a sense of the demand for your product or service and how best to introduce it to the market.

Also, contact suppliers to get price quotes on materials and services that you will need to manufacture your product or deliver your service.

Once you’ve completed your business plan, it is time to figure out how you are going to finance your business.

Financing Your Business

Every business succeeds or fails on the basis of its ability to sustain itself financially, but it could take some time before revenues are large enough to cover costs.

Although there are a number of financing options for new businesses and startups, the research shows that almost 90% of entrepreneurs invest some personal savings at the early stages of their business. And more than 74% said that personal savings were the primary source of initial financing. Using your own savings may also show other potential investors that you are serious about the future of your new venture.

The Options for Financing

Some entrepreneurs obtain financing from banks, venture capital , angel investors, or the government. The first two options may be harder to obtain in the early stages as they tend to demand to see an existing company with strong growth potential before forking over the money. Angel investors, those who offer new and fledgling businesses capital in exchange for equity, are also possible funding options, but tend to offer smaller amounts.

While it can take some time to receive approval and not all businesses are eligible, government funding could be a good way to go given the numerous incentives for cleaner, more sustainable technologies and services.

Visit the U.S. Department of Energy site for current energy efficiency and renewable energy funding opportunities and the National Renewable Energy Laboratory (NREL) site for renewable energy project financing information.

The Bottom Line

Once you’ve had an idea, made a plan, and figured out how to finance your business, you’re on your way to becoming a renewable energy entrepreneur.

But the work has just begun. Now you’re going to have to convince consumers to spend money on your product or service. This is not easy, but it can be rewarding, especially considering that you're sustaining not only your livelihood but that of people all over the world for generations to come. Renewable energy entrepreneurs may just save the planet yet.

RetailMeNot. " 4 in 5 Consumers Think Eco-Friendly Products Cost More 'Green .'"

Eric Koester. " Green Entrepreneur Handbook: The Guide to Building and Growing a Green Business ," Page 88. CRC Press, 2016.

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Renewable Energy – Business Plan

Renewable energy. Preparing a Business Plan and a complete Project Proposal for your business idea is the most important step in starting your business. Our expert team of engineers and economists with their knowledge and experience will fully respond to your requests and ideas, in accordance with all the rules of project documentation, writing a business plan, macro and micro economic situation at the time of writing the project. This guarantees the ultimate outcome of your project application and business plan. We make all kinds of projects, business plans based on renewable energy sources (solar systems, wind generators, heat pumps, etc.) for the purpose of obtaining loans, subsidies and other investments. We optimize energy systems in accordance with your requirements, we make a “payback” (payback analysis) period for the designed system. We do SWOT and market analysis of your idea, product and system. We improve processes, increase energy efficiency in existing systems and production processes. We perform this according to the most famous models of excellence TQL, TQM, Kaizen, Sixsigma and their tools (SiPoc, Ishikawa, etc.).

Figure 2. Project proposal and Business Plan for all types of energy systems

The advantages of our business plans are in a modern, effective and chronological content, which consists of:

SUMMARY OF BUSINESS PLAN

• Business idea
• The potential of a business idea
• The key to success
• Necessary financial resources MISSION AND GOALS PRODUCTS AND SERVICES MARKET STRATEGY
• Market analysis
• Competition
• Market performance
• Marketing and sales OPERATION PLAN
• Location and office space
• Human Resources
• Legal aspects
• Credit policy MANAGEMENT
• Team management
• Organization FINANCE
• Financial indicators

Figure 3. Installed wind turbines in an urban settlement

In addition to business plans and projects, we also offer wind generators – turbines, solar panels that can be ordered from us with all the accompanying electrical and mechanical equipment such as: inverter – domestic and EU production, supporting and prefabricated structures, complete design documentation, installation of support systems construction, electrical installation and connection to the electricity grid.

Download the catalog of our wind turbines

Download the operating characteristics of our wind turbines

Tell us your needs and we will offer you the best solution.

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How to succeed in the expanding global offshore wind market

Offshore wind —now widely recognized as a proven and reliable source of renewable energy—is likely to grow in the coming years. According to our research, global installed offshore wind capacity is expected to reach 630 gigawatts (GW) by 2050, up from 40 GW in 2020, and with upside potential of 1,000 GW in a 1.5° pathway scenario. 1 McKinsey Global Energy Perspectives proprietary model.

About the authors

Rapidly expanding government commitments and technological progress are contributing to the positive outlook in established markets and countries new to offshore wind. More companies are pursuing offshore wind projects, some of which may involve challenges and risks, including commercial requirements from authorities, difficult project economics, and the requirement to build or bolster capabilities.

This article describes the offshore wind opportunity, progress at the regional and country levels, and tailwinds that could support growth. It also discusses the challenges companies could face and how success in four areas can help them win auctions, execute projects, and support profitable growth.

Global support and technological progress fuel growth in offshore wind

All regions globally are expected to contribute to growth in offshore wind, which can help curb climate change (Exhibit 1). Europe is starting from the largest base (25 GW in 2020) and is expected to increase capacity by 7 percent annually to 190 GW in 2050 in the base case.

The Asia–Pacific region (APAC), which had 11 GW of installed offshore wind in 2020, is projected to strongly increase its capacity, surpassing Europe, the Middle East, and Africa (EMEA) by the mid-2030s and installing 410 GW by 2050 in the base case, including 240 GW in Mainland China. In Asia, Taiwan has positioned itself as the offshore wind pioneer, alongside Mainland China. Japan issued its third tender—the instrument most governments use to allocate offshore wind capacity—in December 2021. 2 Adnan Durakovic, “Japan launches third offshore wind auction,” OffshoreWIND.biz, December 10, 2021. Australia, South Korea, and Vietnam are also beginning to act on their ambitions.

Offshore wind in the Americas is still in its infancy, but the region is projected to build approximately 35 GW of capacity by 2050. 3 Global Energy Perspective 2021 , reference case, McKinsey, January 2021. In March 2021, US President Joe Biden issued an executive order calling for 30 GW of offshore wind capacity to be installed by 2030. Complementing the federal trend, states with access to marine areas suitable for offshore wind have set ambitious state-level targets. While much of this activity is taking place on the East Coast, areas in California, the Gulf of Mexico, Alaska, and Hawaii also are starting to recognize their offshore wind potential, including in floating technologies.

Meanwhile, many other countries are exploring offshore wind, including Azerbaijan, Brazil, Canada, Colombia, India, Oman, the Philippines, Sri Lanka, and Trinidad and Tobago. 4 “New program to accelerate expansion of offshore wind power in developing countries,” World Bank, March 6, 2019.

Technological progress is also boosting the outlook for offshore wind. Until recently, turbines have been installed onto bottom-fixed foundations that are grounded in waters with typical depths of up to 50 meters, requiring a relatively shallow continental shelf. Newer, floating foundations, however, can be installed irrespective of the terrain that lies below and may become viable for water depths of 1,000 meters and beyond 5 “Tetra offshore foundations for any water depth,” Stiesdal, accessed February 1, 2022. —an advancement that increases the viable sea area for offshore wind by a factor of five. 6 “Overview of floating offshore wind (text version),” National Renewable Energy Laboratory, Office of Energy Efficiency and Renewable Energy, US Department of Energy, February 26, 2020. France has already completed a tender for its first commercial floating project. Italy has identified more than 17 GW of offshore wind potential, 70 percent of which lies in deep waters requiring floating foundations. 7 Alessando Ferro, “L’ ‘impero’ dell’eolico off shore dell’Italia,” Il Giornale , January 2, 2022.

Additionally, excess offshore wind capacity can now serve as an alternative fuel source for hydrogen electrolysis, a versatile energy storage, transmission, and fuel technology that can be used to decarbonize many hard-to-abate industries and applications. Because electrolysis is so capital intensive to build, companies are eager to maximize utilization, an objective that offshore wind also supports due to its high capacity. In 2021, Denmark approved a project to construct an offshore hub with up to 10 GW of capacity in the form of an artificial island in the North Sea that, using on-site electrolyzers, can store electricity and produce green hydrogen. 8 “Denmark parliament approves giant artificial island off Copenhagen,” BBC News, June 4, 2021.

Finally, the power rating of wind turbines is growing significantly. Turbines with a capacity of more than 15 megawatts (MW) are expected to be available within five years. In comparison, the average turbine size installed in 2020 was around 8 MW. The leading three Western OEMs have announced that models in the range of 13–15 MW will be available for installation by 2024. 9 John Parnell, “Vestas launches world’s largest turbines as ‘big 3’ competition ramps up,” Greentech Media, February 12, 2021; “GE Renewable Energy’s Haliade-X prototype starts operating at 14 MW,” GE, October 5, 2021.

As a result of these advancements, the levelized cost of electricity (LCOE) for offshore wind is falling substantially, from around €150 per megawatt-hour (MWh) in 2015 to a projected less than €50 per MWh by around 2024. 10 Based on the auction price of the United Kingdom’s third contract-for-difference tender, which is expected to be commissioned around that time. In fact, 2021 has turned out to be a defining year for offshore wind. Established offshore wind veterans and oil majors, including BP, Equinor, Shell Energy, and TotalEnergies, have announced ambitious pipeline plans (Exhibit 2). This is advantageous because much of the capacity announced through 2030 had already been auctioned by the beginning of 2022.

Companies pursuing offshore wind can expect challenges

The industry’s growth prospects and the race to net-zero emissions are attracting more companies with adjacent capabilities. In addition to offshore wind veterans, utilities, oil majors, and other large capital project developers are entering the market.

Along with increasing competition, governments are strengthening commercial requirements that apply to companies bidding for offshore wind projects. Some governments use tenders to determine either the electricity price for a long-lasting offtake agreement 11 In project financing, an agreement to purchase all or a substantial part of the output or product produced by a project. or the seabed lease price. In some geographies, this has led to inflated seabed lease prices. Along the US Atlantic coast, for example, lease prices increased more than tenfold from 2017 to 2018. 12 $74 per acre at area North Carolina WEA OCS-A 0508 in 2017; $1,059 per acre at area Massachusetts WEA OCS-A 0521 in 2019. Companies are also trying to improve their competitive positions with low offtake pricing (Exhibit 3).

In several recent European tenders, zero-subsidy bids have won capacity. A recent tender in Denmark even required what could be interpreted as developers making payments to the government in the form of a bid that included full construction of both generation and transmission assets.

After being awarded capacity, some companies may face risks to their capital-project development costs. Offshore wind projects typically take several years to complete but are based on cost calculations made months in advance of the auction—and several years before the project is commissioned into service. In the meantime, raw-material prices fluctuate; for example, prices for steel, which makes up 70 to 80 percent of the total mass of each offshore wind turbine, were at all-time highs for most of 2021. 13 Grace Donnelly, “Record-high steel prices could hamper renewable rollout in near-term,” Emerging Tech Brew , March 28, 2022. Additionally, some construction equipment and wind turbine installation vessels (WTIVs) are scarce for the larger turbine sizes that are being deployed; globally, there are only about ten WTIVs that can accommodate ten-MW turbines.

Moreover, many offshore wind projects require extensive upgrades to port infrastructure and local supply chains, partly based on explicit government requirements that aim to create local jobs. In the face of this increasing variability and uncertainty, offshore wind participants need to build capabilities in several areas to effectively participate.

Strategies to support growth in offshore wind

Established producers and newcomers can overcome the challenges by committing to excellence along the offshore wind value chain by excelling in several foundational, high-value areas (Exhibit 4).

The goal of development is to open new markets, acquire strong sites, and succeed at auctions. Currently, local markets can be divided into two archetypes with respect to development. In some countries, such as the United States and the United Kingdom, sites are selected and leased by government entities, and then developed by companies to secure remuneration at official capacity tenders for those locations. In other countries, such as Denmark and the Netherlands, sites are centrally developed by government entities, and offshore wind bidders then compete in the tender process for one or several locations. In both archetypes, the starting point for success in offshore wind is a clear strategy. Excellence in development also demands bidding prowess and a smart approach to predevelopment, such as building connections with the local community.

Clear strategy: A clear offshore wind strategy starts with a company deciding which technologies to include in its portfolio. Solely focusing on offshore wind is a high-stakes, high-capital-expenditure undertaking that poses more clustered risk than a diversified portfolio that also includes, for example, solar photovoltaic (PV) and onshore wind.

Second, companies could consider which geographic markets to target for participation. Offshore wind markets vary widely, especially with respect to their regulatory and political environments and maturity. Viable target markets typically have regulatory environments supporting renewable energy and for offshore wind specifically. Most leaders of viable markets either have already established a market and regulatory framework or have made plans to do so. Notably, a broader portfolio comes with the upside of diversification but also with increased complexity.

Third, companies may want to understand their capabilities and limitations. For example, an experienced project developer such as an oil major may build on its extensive experience securing financing for and managing large-scale capital projects. A regulated utility may choose to build on its knowledge of local communities and institutions. Following a thorough capabilities assessment, participants can determine where and how to add capabilities (for example, develop them in-house, selectively hire, or partner with others).

Predevelopment including links to local communities: As offshore wind tender processes become more competitive, participants need to successfully manage a broad range of stakeholders. Some companies use innovative strategies to involve local communities in their offshore wind plans from the start. For example, the joint venture between Ørsted and Eversource solicited opinions from the local fishing community when scouting and monitoring sites off the coast of Rhode Island. The two companies also upgraded a fleet of local fishing boats to meet industry safety standards to minimize the risks of incidents at sea. 14 Adrijana Buljan, “Ørsted, Eversource team up with US fishermen,” Offshore WIND, May 20, 2021.

Additional complex decisions that need to be made before development may include whether and where to build a local manufacturing footprint for turbine assembly. This can be a critical differentiator for tender participants, given the economic impact on communities. Ultimately, organizations such as turbine OEMs and foundation manufacturers are responsible for building their respective manufacturing footprints, which means the offshore wind developer needs to work closely with these stakeholders and, often, to navigate and resolve competing interests.

Entering new offshore wind markets is challenging given the local knowledge required. Only a few experienced international players have managed to organically penetrate new markets around the world, although many partner with or acquire local utilities, companies, or projects to gain market entry (Exhibit 5). Notably, there could be large adjacent value pools forming for infrastructure players. For instance, in the United States, the Biden administration projects that multibillion-dollar investments in ports and vessels will be needed to meet the 2030 target. 15 “Fact sheet: Biden administration jumpstarts offshore wind energy projects to create jobs,” White House, March 29, 2021.

Implementing successful bidding: As new participants enter the market, companies could focus more time on planning and executing their bid process to improve their bid success. A thoughtful approach to auction excellence can help companies remain level-headed and focus on the critical elements of an auction.

First, participants need to establish a fact base about the auction. This involves scrutinizing the government’s core assessment criteria and auction rules. Collecting and analyzing previous auction results can provide meaningful insights into long-term price trends to inform bid development. Auction participants can also attempt to estimate ranges of bids from competitors for a given auction. Combining deep industry intelligence, competitive economics, and informed assumptions can help participants anticipate competitors’ likely auction behaviors. By using publicly available information, auction participants can approximate competitors’ walk-away prices, hurdle rates, and minimum required rate of return on a project.

As new participants enter the market, companies could focus more time on planning and executing their bid process to improve their bid success.

Second, after establishing a deep understanding of competitors, companies may want to determine their own valuation of the project, including a business case for capital expenditures, operating expenditures, and commercial risk. Best practices include defining the specific walk-away price for a given lease by solving backward from the expected offtake price and taking into account project risks along the value chain.

Multitechnology integration: As the offshore wind industry matures, governments and experienced companies are increasingly linking offshore wind projects to a specific use rather than simply feeding into the larger electricity grid. For example, integrating offshore wind with hydrogen electrolysis will become more commonplace; developers may benefit from investing in technology integration capabilities. Ørsted recently announced plans to connect one of the world’s largest electrolyzer projects to 2 GW of new offshore wind capacity in the North Sea. It plans to power the electrolysis process with electric power from offshore wind and thus enable the build-out of infrastructure required to sustainably produce steel, ammonia, ethylene, and other hydrogen-based chemicals and materials in Europe. 16 Stefan de Bruijn and Michael Korsgaard, “Ørsted to develop one of the world’s largest renewable hydrogen plants to be linked to industrial demand in the Netherlands and Belgium,” Ørsted, March 31, 2021.

Securing offshore wind capacity is the first step in a long journey. The next step is to effectively execute engineering, procurement, construction, and installation (EPCI) processes to achieve the cost targets that informed the successful auction strategy.

Fit-for-purpose operating model: Successful offshore wind projects require a well-structured organization and a detailed strategy for in-house versus outsourced activities. Key elements—including the organizational structure, staffing model, and governance—must be designed with the company’s core competencies and the specific opportunity in mind.

EPCI package structure: Participants can consider a number of offshore packaging archetypes. For example, in a full EPCI model, the developer contracts both supply and installation for each group of components (most importantly, turbine, wind-turbine-generator foundation, array cables, export cables, and offshore substations). In multicontracting, in contrast, the developer contracts out supply and installation separately for all components.

In mature markets, offshore wind veterans can often achieve cost advantages by using a multicontracting approach—procuring key components or packages directly from suppliers and handling installation separately (Exhibit 6). A multicontracting strategy, however, requires a complete understanding of the offshore wind value chain, good availability of supply and installation resources, and deep in-house project execution capabilities—which is why it is typically only available to experienced participants. Furthermore, not all local markets offer the supplier landscape required to contract out in packages using this strategy.

Procurement excellence: Material costs have been rising, mostly driven by an unprecedented surge in steel prices, making procurement excellence an essential skill for offshore wind developers. Overall, material cost fluctuations create uncertainty that can pose a significant risk to projects. To decrease fluctuations and lower EPCI costs overall, offshore wind developers can employ advanced procurement tools and strategies to ensure low cost and early technology access. These include rigorous spend analysis, clean sheeting—analyzing a product’s cost structure from top to bottom to optimize design and capture savings—and excellence in supplier negotiations.

Claims management excellence in construction: Excellence in construction in a number of key areas, including claims management, is crucial. Claims can amount to 10 to 20 percent of total contract cost. Best-in-class claims management can decrease penalties and build thriving, collaborative relationships with contractors. This includes having the right organizational structure and standardized processes in place for recording and processing claims; creating transparency to identify, analyze, and counteract the most common, high-value causes of claims; and changing the culture to anticipate and prevent claims—rather than simply respond to them—by collecting evidence on contractor behavior and carefully reviewing contract terms to eliminate clauses that previously led to claims. These practices can help limit the overall number of claims.

Operations and maintenance (O&M) excellence can be a major source of competitive advantage. Based on today’s installed capacity in Europe, our research suggests there would be a savings opportunity of more than €600 million per year if all participants adopted best-in-class O&M practices. Turbines to be installed in the future will have significantly more mature technology but also more complexity resulting from significantly larger blades, gearboxes, and generators, for example.

O&M costs are hard to predict and heavily based on assumptions such as the number of major component failures expected over a 20- to 30-year asset lifetime. Given the significant reduction in offshore wind capital expenditure over time and the longer lifetime of assets, achieving low O&M cost and reliable performance is crucial. As a starting point, companies may want to decide whether to have third parties (for example, OEMs or other O&M service providers) perform maintenance services or to perform O&M in-house.

In the case of third parties providing O&M services, rigorous performance measurement and consequence management in case of deviations from contractual obligations are key to ensure that risk and cost are adequately passed on to the service provider. If O&M is performed in-house, excellent execution based on lean principles and the use of digital technologies—for example, to enable predictive maintenance—can help bolster effectiveness.

While cost fluctuations are the norm in large offshore wind projects, government pricing mechanisms and long-term offtake agreements have historically ensured relatively stable revenues. However, going forward, the exposure of the industry to market prices (so-called merchant risk) and thus to revenue fluctuation is likely to increase significantly. More and more existing assets are leaving the subsidy phase, and new assets that are selling electricity at current wholesale prices are coming online “subsidy free.” At the same time, any additional volatility on the revenue side comes with a potentially significant impact on financing terms.

Managing merchant risk starts with defining a clear strategy: How much merchant exposure is a company comfortable with, and what share of revenues should be locked in? The question becomes even more challenging with power prices skyrocketing in some regions of the world and demand for green electricity likely continuing to surge.

For the portion of revenues that are locked in, companies may want to develop the right approach to identify and secure offtake. Options for corporate offtakers range from investing outright in a project to striking deals with a limited number of large offtakers to having a broader portfolio of offtakers. For production, the company will need to decide how much to hedge and over what period of time.

Ultimately, participants could consider developing the right operating model across the front-, middle-, and back-office systems underpinning their strategy. Options include maintaining full trading and structuring capabilities in-house and outsourcing most activity while retaining a small but highly capable team in-house to avoid excessive value leakage.

Looking ahead

By the end of this decade, thousands of turbines will likely be turning along the coasts of Asia, Europe, North America, and other regions. The offshore wind industry has the potential to create significant value for companies, communities, regions, and countries while making a major contribution to reliable, low-cost, and clean electricity. Companies that intend to capture their share of this value pool have considerable work to do to build excellence along the value chain. Sizable investments—in organizations, processes, technology, and people—will be required to master the challenges ahead and to effectively compete with other players.

Florian Kühn is a partner in McKinsey’s Oslo office, Friederike Liebach is a consultant in the Frankfurt office, Tim Matthey is a consultant in the Boston office, Andreas Schlosser is a partner in the Munich office, and Jakub Zivansky is an associate partner in the Prague office.

The authors wish to thank Peter Claus, Emil Hosius, Nadine Janecke, Boris Naar, Fridolin Pflugmann, Bogdan Rozhkov, Joscha Schabram, Thomas Schrade, Christian Staudt, Humayun Tai, Alexander Weiss, and Raffael Winter for their contributions to this article.

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FACT SHEET: Biden Administration Jumpstarts Offshore Wind Energy Projects to Create   Jobs

Interior, Energy, Commerce, and Transportation Departments Announce New Leasing, Funding, and Development Goals to Accelerate and Deploy Offshore Wind Energy and Jobs

Today, the White House convened leaders from across the Administration to announce a set of bold actions that will catalyze offshore wind energy, strengthen the domestic supply chain, and create good-paying, union jobs.

National Climate Advisor Gina McCarthy, Interior Secretary Deb Haaland, Energy Secretary Jennifer Granholm, Commerce Secretary Gina Raimondo, and Transportation Secretary Pete Buttigieg met today with state officials, industry executives, and labor leaders to announce new leasing, funding, and goals that employ President Biden’s whole-of-government approach, position America to lead a clean energy revolution, and create thousands of jobs across the country with the choice to join a union.

In his first week in office, President Biden issued an Executive Order that calls on our nation to build a new American infrastructure and clean energy economy that will create millions of new jobs. In particular, the President’s Order committed to expand opportunities for the offshore wind industry. The President recognizes that a thriving offshore wind industry will drive new jobs and economic opportunity up and down the Atlantic Coast, in the Gulf of Mexico, and in Pacific waters. The industry will also spawn new supply chains that stretch into America’s heartland, as illustrated by the 10,000 tons of domestic steel that workers in Alabama and West Virginia are supplying to a Texas shipyard where Dominion Energy is building the Nation’s first Jones Act compliant wind turbine installation vessel.

Federal leadership, in close coordination with states and in partnership with the private sector, unions and other key stakeholders, is needed to catalyze the deployment of offshore wind at scale.

Today, the Administration is taking coordinated steps to support rapid offshore wind deployment and job creation:

• Advance ambitious wind energy projects to create good-paying, union jobs
• Investing in American infrastructure to strengthen the domestic supply chain and deploy offshore wind energy
• Supporting critical research and development and data-sharing.

Advance Ambitious Wind Energy Projects to Create Good-Paying, Union Jobs

• Announcing a New Wind Energy Area.  The Interior Department’s Bureau of Ocean Energy Management (BOEM) is announcing a new priority Wind Energy Area in the New York Bight—an area of shallow waters between Long Island and the New Jersey coast—which a recent study from Wood Mackenzie shows can support up to 25,000 development and construction jobs from 2022 to 2030, as well as an additional 7,000 jobs in communities supported by this development. The study indicates the New York Bight lease area also has the potential to support up to 4,000 operations and maintenance jobs annually, and approximately 2,000 community jobs, in the years following. This new Wind Energy Area is adjacent to the greater metropolitan Tri-State area— the largest metropolitan population center in the United States that is home to more than 20 million people and their energy needs. The next step is for BOEM to publish a Proposed Sale Notice, followed by a formal public comment period and a lease sale in late 2021 or early 2022.
• DOI action to unlock deployment potential:  To position the domestic offshore wind industry to meet the 2030 target, DOI’s Bureau of Ocean Energy Management (BOEM) plans to advance new lease sales and complete review of at least 16 Construction and Operations Plans (COPs) by 2025, representing more than 19 GW of new clean energy for our nation.
• Massive supply chain benefits of deploying offshore wind energy at scale:  Meeting the 2030 target will catalyze significant supply chain benefits, including new port upgrade investments totaling more than $500 million; one to two new U.S. factories for each major windfarm component including wind turbine nacelles, blades, towers, foundations, and subsea cables; additional cumulative demand of more than 7 million tons of steel—equivalent to 4 years of output for a typical U.S. steel mill; and the construction of 4 to 6 specialized turbine installation vessels in U.S. shipyards, each representing an investment between $250 and $500 million.
• 2050 implications of meeting the 2030 goal:  Achieving this target also will unlock a pathway to 110 GW by 2050, generating 77,000 offshore wind jobs and more than 57,000 additional jobs in communities supported by offshore wind activity – all while creating further economic opportunity and ensuring future generations have access to clean air and abundant renewable power.
• Advancing critical permitting milestones for the Ocean Wind Offshore Wind Project.  BOEM is announcing a Notice of Intent (NOI) to prepare an Environmental Impact Statement (EIS) for Ocean Wind, putting it in line to become America’s third commercial scale offshore wind project. Ocean Wind has proposed an offshore wind project with a total capacity of 1,100 megawatts (MW) — enough to power 500,000 homes across New Jersey. BOEM previously announced environmental reviews for Vineyard Wind (MA) and South Fork (RI), and anticipates initiating the environmental reviews for up to ten additional projects later this year.

Investing in American Infrastructure to Strengthen the Domestic Supply Chain and Deploy Offshore Wind Energy

• Investing in Port Infrastructure to Support  Offshore Wind.  The U.S. Department of Transportation’s (DOT) Maritime Administration today is announcing a Notice of Funding Opportunity for port authorities and other applicants to apply for $230 million for port and intermodal infrastructure-related projects through the Port Infrastructure Development Program. Port Infrastructure Development Grants support projects that strengthen and modernize port infrastructure, and can support shore-side wind energy projects, such as storage areas, laydown areas, and docking of wind energy vessels to load and move items to offshore wind farms. In addition to supporting our nation’s long-term economic vitality, DOT’s review process will consider how proposed projects can most effectively address climate change and environmental justice imperatives.
• Access to $3 billion in Debt Capital to Support Offshore Wind Industry through DOE Loan Programs Office.  DOE’s Loan Programs Office (LPO) released a fact sheet to facilitate access for the offshore wind industry for $3 billion in funding through LPO’s Title XVII Innovative Energy Loan Guarantee Program. The fact sheet signals that LPO is open for business and ready to partner with offshore wind and offshore transmission developers, suppliers, and other financing partners to scale the U.S. offshore industry and support well-paying jobs. To date, LPO has provided $1.6 billion in support of projects totaling about 1,000 MW of onshore wind.

Supporting Critical Research and Development and Data-Sharing

• Announcing offshore wind R&D funding through the National Offshore Wind R&D Consortium.  The National Offshore Wind Research and Development Consortium (NOWRDC), created by the DOE and the New York State Energy Research and Development Authority (NYSERDA), is announcing the award of $8 million to 15 offshore wind research and development projects that were selected through a competitive process. The new projects will focus on offshore support structure innovation, supply chain development, electrical systems innovation, and mitigation of use conflicts that will help reduce barriers and costs for offshore wind deployment. The NOWRDC was established in 2018 with a $20.5 million DOE investment, matching funds from NYSERDA, and with follow-on contributions from state agencies in Maryland, Virginia, Massachusetts, and Maine—all resulting in a total investment of around $47 million.
• Partnering with Industry on Data-Sharing.  The Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) is signing a Memorandum of Agreement with Ørsted, an offshore wind development company, to share physical and biological data in Ørsted-leased waters subject to U.S. jurisdiction. This agreement is the first of its kind between an offshore wind developer and NOAA, and paves the way for future data-sharing agreements that NOAA expects to enter into with other developers. NOAA anticipates that Ørsted’s and other companies’ data will fill gaps in ocean science areas—particularly in ocean mapping and observing—in service of NOAA’s mission to advance climate adaptation and mitigation, weather-readiness, healthy oceans, and resilient coastal communities and economies. 
• Studying Offshore Wind Impacts.  NOAA’s Northeast Sea Grant programs, in partnership with DOE, DOC, and NOAA’s Northeast Fisheries Science Center, is releasing a request for research proposals to support more than $1 million in grant funding to improve understanding of offshore renewable energy for the benefit of a diversity of stakeholders, including fishing and coastal communities. Grant funding will support objective community-based research in the Northeast to further understanding of the effects of offshore renewable energy on the ocean and local communities and economies as well as opportunities to optimize ocean co-use.

At today’s convening, leaders from across the Administration shared their commitment to work closely with one another and with key stakeholders to deliver the economic potential presented by offshore wind energy resources.

• National Climate Advisor Gina McCarthy:  “President Biden has declared very clearly that when he thinks of climate, he thinks of people and jobs—good-paying, union jobs. That’s because President Biden believes we have an enormous opportunity in front of us to not only address the threats of climate change, but use it as a chance to create millions of good-paying, union jobs that will fuel America’s economic recovery, rebuild the middle class, and make sure we bounce back from the crises we face. Nowhere is the scale of that opportunity clearer than for offshore wind. This commitment to a new, untapped industry will create pathways to the middle class for people from all backgrounds and communities.”
• Secretary of Interior Deb Haaland:  “For generations, we’ve put off the transition to clean energy and now we’re facing a climate crisis. It’s a crisis that doesn’t discriminate – every community is facing more extreme weather and the costs associated with that. But not every community has the resources to rebuild, or even get up and relocate when a climate event happens in their backyards. The climate crisis disproportionately impacts communities of color and low-income families. As our country faces the interlocking challenges of a global pandemic, economic downturn, racial injustice, and the climate crisis – we have to transition to a brighter future for everyone.”
• Secretary of Energy Jennifer Granholm:  “This offshore wind goal is proof of our commitment to using American ingenuity and might to invest in our nation, advance our own energy security, and combat the climate crisis,” said Secretary of Energy Jennifer M. Granholm. “DOE is going to marshal every resource we have to get as many American companies, using as many sheets of American steel, employing as many American workers as possible in offshore wind energy—driving economic growth from coast to coast.”
• Secretary of Commerce Gina Raimondo:  “The Commerce Department is committed to innovative partnerships that advance the best science and data to ensure the development of offshore wind is transparent and inclusive of all stakeholders,” said Secretary Raimondo. “We look forward to engaging the public and private sectors to invest in clean energy solutions, like offshore wind, that will contribute to our whole-of-government approach to combat the climate crisis and create high-paying, high-skilled American jobs.”
• Secretary of Transportation Pete Buttigieg:  “Tackling the climate crisis is vital to our nation’s future,” said U.S. Secretary of Transportation Pete Buttigieg. “The Biden-Harris Administration is taking actions that show how creating jobs and addressing climate change can and must go hand in hand. Today’s announcement makes a critical investment in our nation’s ports, which in turn builds up the resilience and sustainability of America’s economy.” 

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $5,000,000 for the development of an alternative energy business that produces electricity from wind turbines while showcasing the expected financials and operations over the next three years. The Wind Farm, Inc. (“the Company”) is a New York based corporation that will sell electricity into the power grid from the power produced from its wind turbines. The Company was founded by John Doe.

1.1 Products and Services

As the prices of traditional fuels has skyrocketed (oil, natural gas, and coal), the demand among consumers for ecologically friendly and economically viable alternatives has increased. As of mid 2008, the prices of crude oil and its related energy products has almost doubled. As such, companies like Wind Farm, Inc. have recognized a tremendous opportunity to develop facilities that produce electricity from renewable and infinite sources of energy like wind. The Company intends to operate 4 turbines from its one acre land area that will produce approximately 1MW of electricity. This electricity will be then resold into the power grid. The third section of the business plan will further describe the services offered by the Wind Farm.

1.2 The Financing

Mr. Doe is seeking to raise $5,000,000 from an investor. The preliminary terms of this agreement call for an investor to receive a 45% ownership interest in the business coupled with a recurring stream of dividends starting in the first year of operations. The investor will also receive a seat on the board of directors.

1.3 Mission Statement

Management’s mission is to develop the Wind Farm into a profitable and ecologically friendly venture that will provide the Company and its owners with a steady stream of income from the sale of environmentally friendly energy productions services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the alternative energy industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to aggressively solicit additional rounds of capital will concurrently reinvesting a significant portion of the Company’s after tax income into the acquisition of new wind powered turbines.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Wind Farm, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Wind Farm requires $5,000,000 of investor funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

At this time, Mr. Doe is seeking to sell a 45% interest in the business in exchange for the capital sought in this business plan. The investor will also receive a seat on the board of directors as well as a recurring stream of dividends starting in the first year of operations.

2.4 Management Equity

John Doe owns 100% of the Wind Farm, Inc. Once the requisite capital is raised, he will retain a 55% ownership interest in the business.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Wind Farm. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times the previous year’s net earnings.

3.0 Products and Services

As mentioned in the executive summary, the Company is seeking to develop a 4 to 5 turbine wind power production facility that will produce 1 to 1.5 megawatts of zero emission electricity. The retail energy price of electricity is $.09-14 KWh, which is what residential customers pay on average within the United States. Wholesale pricing is lower than that based on the utilities expenses and profits. Management believes $.045 - $.06 per KWh is possible price that the Company can sell its energy to the local utilities and municipalities The expected cost of each turbine is $1,000,000. Despite this high cost, the Company will recognize tremendous revenues from the continued operation of these turbines on a 24 hour basis. Additionally, despite maintenance required on these turbines is minimal. Management will have a team of 8 to 12 employees that continually oversee the ongoing operation of the turbines on a daily basis. In the future, Management intends to expand its facility to accommodate up to 10 wind power producing turbines. The business may solicit additional rounds of capital or it may lease the turbines to generate a higher return on investment.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the alternative energy industry, the customer profile, and the competition that the business will face as it progresses through its business operations. The current geopolitical environment has led Management to believe that energy prices will continue to increase in the near future. The war in Iraq, faltering nuclear production talks with Iran, and general Middle Eastern instability has led many economists to believe that there is a fifteen to twenty percent risk premium now associated with the price of crude oil and related energy products. While these issues bring worry to the general economy, Management sees a significant opportunity to enter the market with a source of alternative energy. Many politicians and special interest groups have promoted the development of alterative energy solutions to combat the continually increasing energy prices in the United States. Additionally, the fast growth of Asian nations (namely India and China) has prompted further increases in the global demand for energy. This trend is expected to continue in perpetuity. Inflation is also concern for the Company. As the inflation rate decreases, the purchasing power parity of the American dollar decreases in relation to other currencies. This may pose a significant risk to the Company should rampant inflation, much like the inflation experienced in the late 1970s, occur again. In this event, the Company will enlist the services of a qualified derivatives focused investment bank to manage large scale currency transactions that would offset the risks normally associated with the distribution of energy products to foreign buyers. The primary risk of rapid inflation in the economy would contribute to a slow down in spending among consumers, but it would also effect the Company’s ability to borrow funds for the expansion of the number of wind turbines operated by the business.

4.2 Industry Analysis

There are approximately 316 companies that provide non-nuclear and non-fossil fuel power generation to the general public. Each year, these businesses aggregately provide more than $18 billion dollars of energy to the open market. The trend among these alternative energy sources is expected to grow significantly as the need for alternative fuels and power grows. Currently, the price of oil and other fossil fuels has skyrocketed to the point where many consumers are looking for alternative methods of power. Collectively, the industry employs more than 18,000 people. Aggregate payrolls exceed $4 billion dollars per year.

4.3 Customer Profile

For the Company’s wind electricity production capabilities, Management expects two core groups of purchasers: government agencies and electricity wholesalers. Among the first group, Management expects that agencies such as counties, state governments, and the US federal government will acquire large scale electricity delivery contracts from the Company with the intent to use the energy within their large scale applications. At the onset of operations, the Company will immediately begin developing relationships with local county governments as well as the state government for ongoing divestiture and purchase agreements. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

Energy production is one of the most free markets in the economy. These markets operate on a global scale, and as such, it is difficult to determine the exact competitors that the Company will face as it progresses through its business operations. Any business that produces electricity is a potential competitor for the business. However, wind energy is becoming an increasingly popular method of producing electricity, and the Company’s primary competitive advantage will be its low cost operating infrastructure, its completely renewable input (wind), and the demand among consumers for cleaner alternatives to traditional oil, natural gas, coal, and nuclear energy power plants.

5.0 Marketing Plan

As the Wind Farm intends to sell its produced energy directly into the electrical grid, the marketing required by the business will be minimal. However, Management is committed to increasing the awareness of wind energy usage. Below is a brief overview of the ways that the Wind Farm will market its operations and alternative energy production.

5.1 Marketing Objectives

• Establish relationships with energy wholesalers and government agencies within the Company’s targeted market.

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories to further increase awareness of wind energy.

5.2 Marketing Strategies

Currently, there are a number of organizations, including the American Wind Association that are pushing initiatives, lobbying legislatures, and informing the general public about the benefits about alternative energy products. Management feels that it is important to invest in these public relations campaigns (even though they will not effect direct sales). Additionally, the increased awareness of wind electricity, its zero emissions, and ability to wean the United States off of foreign energy sources may prompt consumers and lawmakers to further expand the rebates, tax credits, and other incentive programs available for making wind produced electricity an economy viable energy product now and in the future. Approximately $10,000 to $20,000 per year will be spent to support these causes. Additionally, industry conventions, energy product trade shows, and other public relations campaigns will be enacted in order to promote the understanding of wind electricity to the general and business public.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• The Wind Farm will have an annual revenue growth rate of 5% per year.

• The Owner will solicit $5,000,000 of equity funds to develop the business.

• The Company will invest 25% of its after-tax profits back into the Company’s operating infrastructure.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to changes in the general economy. Wind product electricity is comparatively priced with their petroleum/coal based counterparts, and in the event that prices decline, the Company may see a reduction in its revenues. However, the price of oil/coal is expected to continue to climb as reserves are limited and the price of oil has increased significantly over the last two years. Only in the event of a steep drop in the price of petrol based energy products does Management anticipate that the Company will have issues regarding top line income

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis

U.S. identifies areas for offshore wind energy projects near California

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Valerie Volcovici covers U.S. climate and energy policy from Washington, DC. She is focused on climate and environmental regulations at federal agencies and in Congress and how the energy transition is transforming the United States. Other areas of coverage include her award-winning reporting plastic pollution and the ins and outs of global climate diplomacy and United Nations climate negotiations.

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How To Create a Solar-Wind Energy Business Plan: Checklist

By henry sheykin, resources on hybrid solar-wind energy systems.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis

Are you passionate about renewable energy and want to start your own business in the booming industry? Look no further than hybrid solar-wind energy systems! As the world increasingly focuses on sustainability and reducing carbon emissions, the demand for clean energy solutions is skyrocketing. In fact, according to the latest statistics, the global hybrid solar-wind energy market is projected to grow at a CAGR of 8.4% between 2021 and 2026. This presents an incredible opportunity for aspiring entrepreneurs to enter the market and make a positive impact on the planet while also generating profits.

In this blog post, we will provide you with a comprehensive nine-step checklist on how to write a business plan for hybrid solar-wind energy systems. By following these steps, you can ensure that your business is well-prepared and positioned for success in this rapidly growing industry.

So, let's dive right in! The first step is to identify market demand and potential customers. Understanding who your target audience is and the specific needs they have will help you tailor your services and marketing efforts. Researching and evaluating your competitors is also crucial in order to identify gaps in the market and differentiate your business.

Next, determining the funding required and exploring available financing options is essential. Developing a detailed financial plan will enable you to map out your start-up and ongoing costs, as well as project your revenue streams.

Conducting a feasibility analysis of the project will help you assess the viability and profitability of your business idea. This step involves evaluating factors such as the resource availability, technology requirements, and potential returns on investment.

Once you have determined the suitable location for your hybrid solar-wind energy system, it is important to assess the regulatory and legal requirements for operating your business. Familiarize yourself with the permits, licenses, and certifications necessary to comply with industry regulations.

Developing a detailed marketing strategy is crucial for attracting and retaining customers. Identify your unique selling points and communicate them effectively through various marketing channels such as digital advertising, social media, and industry partnerships.

Securing the necessary equipment and technology is another important step. Collaborate with reputable suppliers and manufacturers to ensure the quality and reliability of your hybrid solar-wind energy systems.

Last but not least, conducting a thorough risk assessment and developing a contingency plan will help you mitigate potential challenges and ensure the smooth operation of your business.

By following this nine-step checklist for writing a business plan for hybrid solar-wind energy systems, you will be well on your way to establishing a successful and sustainable business in this rapidly growing industry. Harness the power of renewable energy and make a positive impact on the environment while also generating profits. Good luck!

Identify Market Demand And Potential Customers

In order to successfully establish a business specializing in hybrid solar-wind energy systems, it is crucial to identify the market demand and determine the potential customers who would benefit from your services. Conducting a thorough market analysis will provide valuable insights into the target audience and help tailor your business plan to meet their specific needs and preferences.

Start by researching the current trends and preferences in the renewable energy market. Determine the level of awareness and adoption of sustainable, clean energy solutions among residential and commercial property owners. This will enable you to identify the potential customer base that would be interested in investing in hybrid solar-wind energy systems.

• Consider conducting surveys or interviews with potential customers to gain a deeper understanding of their energy needs and preferences.
• Explore industry reports and studies to gather data on the demand for renewable energy solutions.
• Identify any specific geographical areas or regions where there is a higher demand for sustainable energy options.

Next, identify the key demographic and psychographic characteristics of your potential customers. Determine their income level, location, age, and lifestyle choices. This will help you create targeted marketing campaigns and develop personalized energy solutions that meet their specific requirements.

Additionally, research the needs and pain points of your potential customers. Understand the challenges they face with traditional energy sources and highlight how hybrid solar-wind energy systems can provide a viable solution. Emphasize the cost savings, environmental benefits, and energy independence that your systems can offer.

By thoroughly investigating market demand and potential customers, you can refine your business strategy and tailor your offerings to gain a competitive edge in the renewable energy industry. Understanding the needs and preferences of your target audience will allow you to create a compelling value proposition that resonates with potential customers and drives the success of your business.

Research And Evaluate Competitors

When venturing into the hybrid solar-wind energy industry, it is crucial to research and evaluate your competitors. Understanding the competitive landscape will help you identify key players, their strengths and weaknesses, and the strategies they employ. This knowledge will enable you to differentiate your business and position yourself effectively in the market.

Here are some important aspects to consider when conducting competitor research:

• Identify key competitors: Start by identifying direct competitors who offer similar products and services in the same market. Look for both national and regional players.
• Analyze their offerings: Dive deep into the products and services offered by your competitors. Evaluate the quality, efficiency, and reliability of their hybrid solar-wind energy systems.
• Examine their pricing: Analyze the pricing strategies employed by competitors. Determine whether they focus on affordability, high-end solutions, or premium pricing.
• Assess their market position and reputation: Research how competitors position themselves in the market. Look for their unique selling propositions and how they communicate their brand values to customers.
• Study their marketing and sales strategies: Analyze competitors' marketing campaigns, online presence, and sales tactics. Understand how they attract and retain customers.
• Identify customer feedback and reviews: Look for customer feedback and reviews about your competitors' products and services. This will give you insights into customer satisfaction levels and areas for improvement.
• Subscribe to industry magazines, websites, or newsletters to stay updated on the latest news and developments in the hybrid solar-wind energy sector.
• Attend trade shows and conferences to network with industry professionals and gain insights into the latest technologies and trends.
• Consider conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to understand how your business can leverage its strengths and capitalize on opportunities while mitigating weaknesses and threats.
• Regularly monitor and track your competitors' activities, such as new product launches, pricing changes, and marketing initiatives.

Gaining a comprehensive understanding of your competitors will help you identify gaps in the market, differentiate your offerings, and create a competitive advantage. Use this knowledge to refine your business strategy and position yourself as a strong contender in the hybrid solar-wind energy industry.

Determine The Funding Required And Explore Available Financing Options

When starting a business focused on hybrid solar-wind energy systems, it is crucial to determine the necessary funding and explore the available financing options to ensure a solid financial foundation. The success and growth of your company will heavily depend on securing appropriate funding to support your operations, infrastructure, and future expansion. Here are some essential steps to consider:

• Evaluate the initial capital requirements: Begin by calculating the capital needed to establish and operate your hybrid solar-wind energy system business. This includes costs such as equipment, technology, labor, marketing, licensing, and permits. A detailed analysis of all expenses will help you determine the precise funding required.
• Consider available funding sources: Explore different financing options to fund your business. This can include self-funding, loans from financial institutions, venture capital, crowdfunding, or seeking investment from private individuals or organizations interested in renewable energy projects.
• Research government incentives and grants: Many governments and organizations offer financial incentives, grants, or subsidies to promote renewable energy initiatives. Research and identify any potential government programs that can provide funding support for your hybrid solar-wind energy system business.
• Prepare a comprehensive business plan: A well-prepared business plan is vital when approaching potential lenders or investors. It should include a detailed financial analysis, future growth projections, market research, and a solid strategy. Investors will be more inclined to provide funding when they see a well-thought-out plan that demonstrates the potential for returns on their investment.
• Consider seeking financial advice from professionals with expertise in renewable energy financing.
• Explore partnerships or joint ventures with established companies in the renewable energy sector, as they may provide additional funding opportunities.
• Join industry associations and networks to gain access to potential investors or lenders who specialize in renewable energy projects.

By determining the funding required and exploring the various financing options available, you can establish a solid financial plan to support your hybrid solar-wind energy system business. Remember, seeking professional guidance and conducting thorough research will greatly enhance your chances of securing the necessary funds to turn your business idea into a reality.

Conduct A Feasibility Analysis Of The Project

Before embarking on a venture as ambitious as establishing a small-scale company specializing in hybrid solar-wind energy systems, it is crucial to conduct a thorough feasibility analysis. This analysis will help determine the viability and potential success of the project, taking into account various factors that could influence its outcome. Here are some important considerations to keep in mind:

• Market Demand: Assess the market demand for hybrid solar-wind energy systems in the target region. Analyze the current trends, customer preferences, and potential growth opportunities. Identify whether there is a sustainable demand for such systems and if they align with the energy needs and priorities of residential and commercial properties.
• Business Potential: Evaluate the business potential of the project by studying the economic factors that may impact its success. Consider the investment required, projected revenue streams, and profitability margins. Conduct a cost-benefit analysis to determine if the project can generate a satisfactory return on investment.
• Technical Feasibility: Asses the technical feasibility of implementing hybrid solar-wind energy systems. Evaluate the availability of suitable technology, the compatibility of solar and wind energy sources, and the reliability of the systems in different weather conditions. Analyze if the required infrastructure and expertise are readily available or can be acquired within a reasonable timeframe.
• Environmental Impact: Consider the environmental impact of the hybrid solar-wind energy systems. Assess their contribution to reducing carbon emissions, mitigating climate change, and promoting sustainability. Evaluate if the systems align with local environmental regulations, renewable energy targets, and community expectations regarding clean energy solutions.

Tips for conducting a feasibility analysis:

• Thoroughly research the market demand and industry trends to identify potential opportunities and challenges.
• Consult experts or professionals in the renewable energy field to gain valuable insights and expertise.
• Consider conducting surveys or interviews with potential customers to gauge their interest in hybrid solar-wind energy systems.
• Assess the financial implications of the project, including the initial investment, operating costs, and potential revenue streams.
• Collaborate with regulatory agencies and local authorities to understand the legal requirements and permits necessary for operating the business.
• Analyze the risks associated with the project and develop contingency plans to mitigate them.

By conducting a comprehensive feasibility analysis, you can make informed decisions about the viability of your business idea. This step is instrumental in setting a solid foundation for the successful implementation and operation of your hybrid solar-wind energy systems company.

Determine The Suitable Location For The Hybrid Solar-Wind Energy System

Choosing the right location for your hybrid solar-wind energy system is crucial to its overall performance and efficiency. Here are some important factors to consider:

• The availability of sunlight and wind resources: Assess the average amount of sunlight and wind in the area where you plan to install the system. Locations with high solar irradiation and consistent wind speeds will yield better energy production.
• Local weather patterns: Consider the climate conditions, including seasonal variations, wind directions, and extreme weather events. This information will help determine the system's resilience and adjust energy production expectations.
• Structural considerations: Assess the structural integrity of the buildings or infrastructure where the hybrid solar-wind energy system will be installed. Ensure proper load-bearing capacity and stability to support the installation.
• Accessibility: Determine the ease of access for installation, maintenance, and repairs. A location with convenient access can reduce costs and improve operational efficiency.
• Land availability: If planning for ground-mounted systems, assess the availability and suitability of land for installation. Consider factors like land ownership, zoning regulations, and environmental considerations.

Tips for determining the suitable location:

• Conduct thorough site visits and inspections to gather accurate data on solar irradiation, wind speeds, and any potential obstructions.
• Consult with local weather agencies or renewable energy experts to obtain historical climate data and assess the long-term feasibility of the location.
• Engage with local authorities and seek their input on any specific permit requirements or restrictions related to installing renewable energy systems.
• Consider the proximity to target customer locations to minimize transmission losses and optimize energy distribution.

By carefully evaluating these factors, you can identify the most suitable locations for your hybrid solar-wind energy systems, ensuring optimal energy generation and long-term success for your business.

Assess The Regulatory And Legal Requirements For Operating The Business

Assessing the regulatory and legal requirements for operating a business in the hybrid solar-wind energy industry is crucial to ensure compliance and avoid any potential legal issues. Understanding and adhering to the guidelines and regulations set forth by relevant authorities is essential for a smooth and successful operation. Here are some key factors to consider:

• Obtain necessary permits and licenses: Before you start installing hybrid solar-wind energy systems, it is important to obtain the required permits and licenses from local, state, and federal regulatory bodies. These permits may include building permits, electrical permits, and renewable energy certifications. Ensure that you have a clear understanding of the specific permits and licenses needed for your business.
• Compliance with building codes and standards: The installation of hybrid solar-wind energy systems must adhere to building codes and standards that govern the construction and safety of such systems. Familiarize yourself with the National Electrical Code (NEC) and local building codes to ensure compliance.
• Environmental regulations: As a renewable energy company, it is important to be aware of any environmental regulations or restrictions that may apply to the installation and operation of hybrid solar-wind energy systems. This may include compliance with environmental impact assessments, waste management, and noise pollution regulations.
• Contractual agreements and warranties: Develop comprehensive contracts and warranties to protect both your business and your clients. These agreements should outline the scope of work, responsibilities, payment terms, and any warranties or guarantees offered by your company.
• Consult with an attorney or legal advisor experienced in renewable energy regulations to ensure compliance with all applicable laws.
• Stay updated on any regulatory changes or new legislation in the renewable energy industry to adapt your operations accordingly.
• Maintain detailed records of permits, licenses, and compliance documentation to demonstrate regulatory compliance when required.

Essentially, understanding and adhering to the regulatory and legal requirements for operating a hybrid solar-wind energy business is essential for maintaining a trustworthy and compliant operation, ensuring the long-term success of your business while contributing to a sustainable future.

Develop A Detailed Marketing Strategy

Developing a strong marketing strategy is essential for the success of your hybrid solar-wind energy systems business. By effectively promoting your services and reaching out to potential customers, you can build brand awareness, generate leads, and ultimately drive sales. Here are some important considerations when developing your marketing strategy:

• Identify your target audience: Determine the demographics and characteristics of your ideal customers. Are you targeting residential homeowners or commercial property owners? Understanding your target audience will help you tailor your marketing efforts to reach the right people.
• Highlight the benefits of hybrid solar-wind energy systems: Emphasize the advantages of your renewable energy solutions, such as reduced energy costs, environmental sustainability, and independence from traditional power sources. Clearly communicate how your systems can meet the specific needs and goals of your customers.
• Create a professional brand identity: Develop a strong brand that reflects your company's values and unique selling propositions. This includes designing a professional logo, creating a visually appealing website, and consistently using your brand's colors and messaging across all marketing materials.
• Utilize digital marketing strategies: Leverage the power of online marketing channels to reach a wider audience. Invest in a well-designed website with search engine optimization (SEO) techniques to improve your visibility in search engine results. Make use of social media platforms, email marketing campaigns, and content marketing to engage with potential customers and build relationships.
• Establish partnerships: Collaborate with other businesses, organizations, or community groups that align with your values and target audience. These partnerships can help you expand your reach and credibility, and provide opportunities for cross-promotion.

Tips for an effective marketing strategy:

• Regularly monitor and analyze the performance of your marketing campaigns to identify areas for improvement and make data-driven decisions.
• Consider offering incentives or discounts for referrals or testimonials from satisfied customers to encourage word-of-mouth marketing.
• Attend industry conferences, trade shows, and networking events to connect with potential clients and industry professionals.
• Provide educational content, such as blog posts, videos, or webinars, to establish your expertise and attract customers who are searching for information about renewable energy solutions.

By developing a detailed marketing strategy, you can effectively communicate the unique value of your hybrid solar-wind energy systems and attract customers who are seeking sustainable and efficient energy solutions. Remember to regularly evaluate and adapt your strategy based on market trends, customer feedback, and the overall success of your campaigns.

Identify And Secure The Necessary Equipment And Technology

Once you have determined the market demand and potential customers, researched and evaluated competitors, and calculated the funding required for your hybrid solar-wind energy system business, it is essential to identify and secure the necessary equipment and technology. This step plays a crucial role in ensuring the success and efficiency of your operations.

To provide high-quality renewable energy solutions, you need to invest in reliable and state-of-the-art equipment and technology. Here are some important considerations:

• Type and capacity of solar panels: Research and choose solar panels that are efficient, durable, and suitable for your intended use. Consider factors such as power output, efficiency ratings, warranty, and compatibility with hybrid systems.
• Wind turbines: Select wind turbines that are designed for your specific location and desired energy production capacity. Consider factors such as wind speed, tower height, rotor diameter, and noise levels.
• Battery storage systems: Investigate and choose appropriate battery storage systems to store excess energy generated by your hybrid system. Consider factors such as capacity, lifespan, efficiency, and compatibility with different energy sources.
• Monitoring and control systems: Invest in advanced monitoring and control systems to optimize the performance of your hybrid energy system. These systems allow you to track energy production, diagnose issues, and optimize energy usage.
• Installation and maintenance equipment: Acquire the necessary tools and equipment for the installation and maintenance of solar panels, wind turbines, and other components of your energy systems.
• Collaborate with reputable suppliers: Identify and establish partnerships with reputable suppliers who can provide you with high-quality equipment and technology. Make sure to negotiate favorable pricing, warranty terms, and ongoing support.
• Stay updated on the latest advancements in solar and wind energy technology to ensure you are investing in the most efficient and cost-effective equipment.
• Seek recommendations from industry experts or consult with experienced professionals to make informed decisions about the equipment and technology you choose.
• Consider establishing relationships with multiple suppliers to have backup options and ensure a reliable supply chain.
• Regularly assess and update your equipment and technology to stay ahead of industry standards and maintain a competitive edge.

By identifying and securing the necessary equipment and technology, you are setting a strong foundation for the successful implementation and operation of your hybrid solar-wind energy system business. Ensuring that you have the right tools and technologies will enable you to deliver high-quality, efficient, and reliable renewable energy solutions to your customers.

Conduct A Risk Assessment And Develop A Contingency Plan

Conducting a thorough risk assessment is a crucial step in ensuring the success and sustainability of your hybrid solar-wind energy system business. By identifying potential risks and developing a contingency plan, you can proactively mitigate any potential disruptions or challenges that may arise along the way.

Risk Assessment: Begin by identifying the various risks that could impact your business, such as unpredictable weather conditions, equipment failure, supply chain disruptions, or regulatory changes. Assess the likelihood and potential impact of each risk, considering factors such as financial loss, reputational damage, or delays in project completion. Utilize industry knowledge, past experiences, and expert insights to make informed assessments.

Contingency Plan: Once the risks are identified, it is essential to develop a contingency plan to address each potential threat effectively. This plan should outline specific measures to mitigate the identified risks and ensure continuity of operations. The contingency plan should include detailed steps for each risk scenario, allocation of resources, and alternative strategies to stay on track.

A few important tips for developing a comprehensive contingency plan:

• Collaborate: Involve key stakeholders and team members in the risk assessment process to gain diverse perspectives and insights.
• Monitor and Review: Regularly monitor the external environment for any changes that may impact your business and review and update the contingency plan accordingly.
• Infrastructural Redundancy: Consider implementing redundant systems or backup power sources to minimize the impact of equipment failures or power outages.
• Communication Strategy: Develop a clear and effective communication strategy to ensure seamless coordination and prompt response during any crisis or disruption.
• Insurance Coverage: Evaluate and secure appropriate insurance coverage to protect your business against potential risks and liabilities.

By conducting a comprehensive risk assessment and developing a well-defined contingency plan, you can minimize potential disruptions and position your hybrid solar-wind energy system business for long-term success. Remember, it is essential to regularly review, update, and adapt your contingency plan as the business evolves and the industry changes.

In conclusion, writing a business plan for hybrid solar-wind energy systems requires careful consideration and thorough research. By following the nine steps outlined in this checklist, you can ensure that your business is well-prepared to meet the demands and challenges of the renewable energy market. Identifying market demand, understanding competition, securing funding, analyzing feasibility, selecting suitable locations, complying with regulations, developing marketing strategies, obtaining necessary equipment, and assessing risks are essential for the success of your venture. With a sustainable and efficient approach, your company can contribute to a greener future while providing cost-effective energy solutions to customers.

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How To Write a Renewable Energy Business Plan (Template, Sample)

NOV.07, 2022

Renewable energy business plan for starting your own business

Do you aspire to keep both your bank account and the environment happy? A renewable business may be the best choice for you, then. By launching it, you can generate profits while doing your bit for the planet.

A renewable energy enterprise supplies green and clean energy produced by solar, wind, or water resources. The business has immense potential especially due to the launch of B3W in near future.

To commence this business, you require a business plan for renewable energy that covers every aspect. For an insight into how to start an alternative energy company and how to document a perfect operational plan, you can read this article. In this blog, we have given a sample business plan for Clean Power, a startup based in Phoenix. Before entering the business world, it will be helpful to also read a business plan for investors.

Executive Summary

2.1 the business.

Clean Power is a renewable energy startup based in Phoenix. The company aims at offering clean and green energy solutions to households, institutes, companies, and manufacturing plants.

2.2 Management of renewable energy business

After you have developed an operational plan for starting a renewable energy business, you need to devise a strategy to manage it. Your management strategy should include planning about where to procure the equipment from, where to launch your plant, and how to manage the transitions from raw product to successful installation while remaining within your finances.

In this business plan for renewable energy projects we are documenting how to start a renewable company. We will include segments from business plan for banks to help you with the financial part.

Moreover, in this renewable energy business plan pdf, we’ll also jot down the staff and other requirements to run the company.

2.3 Customers of the renewable energy business

Customer groups may be diverse, based on your preferences. Those of Clean Power are:

• Industrial Complex
• Manufacturing Hubs

2.4 Business Target

The business targets of Clean Power are centered around environmental protection and customer satisfaction. They will be mentioned in the later sections. However, monetary goals are partially demonstrated here:

Company Summary

3.1 company owner.

Clean Power will be owned by Martha Ben. Martha is an Electrical Engineer. She has specialized in Energy Systems Engineering at the prestigious Massachusetts Institute in Amherst.

3.2 Why the renewable energy business is being started

Martha always wished to start a business in the engineering niche. Due to immense renewable energy business opportunities, she decided to go for it.

3.3 How the renewable energy business will be started

If you are worried about how to start a career in renewable energy, just follow these simple steps.

Step1: Create Business Plan for Renewable Energy Company

To initiate the launch, you need to make business plan renewable energy. For reference, you may use this renewable energy business plan template or solar energy business plan .

Step2: Acquire Resources

Subsequently, you are required to procure all the equipment that may be needed to generate renewable energy. You will need to hire the personnel and staff that can help you operate.

Step3: Make you Known

The next step is to advertise your venture and competitive advantage. You should be clear and concise about how you are different and better than your competitors. A good practice these days is to exploit online media, Google Ads, and websites to make you known to the public.

Step4: Manage Finances

As you are finished with devising a business plan, you need to start operating and managing the financial flows.

Services of renewable energy business

Services for startup renewable energy business must be decided as you explore how to get into renewable energy industry. Due to diverse business opportunities in renewable energy, you are fortunate to provide services in any niche. To decide on the services, you should study several renewable energy business plans and explore renewable energy business ideas from online companies.

Whatever services you decide for renewable energy for business, make sure to include all its aspects in your business plan template for renewable energy.

The services of Clean Power are:

• Manufacturing & Setting Up Solar Cells

Our basic service will be to manufacture solar panels, solar tiles, and solar cells to be installed in small and large spaces.

• Generating Hydra Power

We will develop optimized solutions to generate clean energy by exploiting water resources.

• Wind-Powered Projects

We will also establish and install wind power plants in the city outskirts.

• Installing Power Protection Systems

We will also set up power protection systems with relaying networks wherever we install the renewable energy setup.

Marketing Analysis of renewable energy business

There are many factors to be considered before establishing a business in renewable energy. First, you need to explore how to start a renewable energy business in a specific location. You need to check out for average income of people in your vicinity to know whether they would avail of renewable energy solutions or not.

All of this information can be summarized in the marketing analysis segment of your renewable energy business plan. You can further make sections for customer segments, market trends, and prevalent pricing strategies to have a clearer idea of renewable energy business opportunity in your area.

For developing a marketing analysis that considers all business opportunities renewable energy, an expert person who knows how to gather statistical data for secondary analysis is required. You may consider hiring a professional or if you want to do the task yourself, you should thoroughly study a renewable energy business plan sample. A good practice would be to also go through biotech startup business plans to have in-depth knowledge of the field.

5.1 Market Trends

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

All the graphs related to renewable energy are seeing an upward trajectory. At present, the market size is $17 billion according to IBISWorld and the figure is expected to rise in the near future. Most of the solar, hydro, and wind power projects are expected to be assigned by the U.S. government in the wake of clean energy programs sought after by B3W countries.

5.2 Marketing Segmentation

In this renewable energy company business plan the market segments identified by Clean Power are given below. Since some of the segments also do overlap with those in gas station business plan and business plan for a biodiesel , you can take guidance from them as well.

5.2.1 Households

This segment is expected to make small purchases for mainly solar panels at us.

5.2.2 Industrial Complex

This segment will be making large purchases and they are expected to avail of all of our services including the installation of protection systems.

5.2.3 Institutes

Government and non-government institutions are expected to avail of our hydro, wind, and solar energy services. They might also hire us for installing power system installation systems for generation grids.

5.2.4 Manufacturing Hubs

This segment will form most of our customers. It is because manufacturers look for ways to optimize their operations even when the initial setup costs are high. They are also expected to avail of our power system protection services.

5.3 Business Target

• Maintaining a CSAT score above 90% throughout the service years.
• Capturing 25% of the market share within three years of operation.

5.4 Product Pricing

As per this solar farm business plan , Clean Power will keep its prices in the same range as the market average. However, certain discounts will be provided at the start to attract customers.

Marketing Strategy of renewable energy business

Though there are immense business opportunities in renewable energy, they can yield you profits only when you reach out to a maximum of customers.

A major challenge in renewable energy entrepreneurship is to convince people how renewable energy is ultimately going to save them money as the initial installation costs are high. Therefore, while you learn how to get into the renewable energy industry, you should also explore how to market renewable energy for businesses’ success.

In this blog on how to make a renewable energy project, we are providing the sales strategy developed by Clean Power.

6.1 Competitive Analysis

• Our employees are highly specialized and experts in their domains.
• We are offering several discounts, in the beginning, to get known.
• Customers are our topmost priority, we are willing to go to all lengths to facilitate them.

6.2 Sales Strategy

• We’ll offer a 50% discount to our first 50 customers.
• We’ll offer a 20% discount on all our services in the months of June and July.
• We’ll advertise our startup on social media, in local newspapers, and in magazines.
• We’ll hold seminars to elucidate the importance of climate conservation by turning to renewable energy.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of renewable energy business

If you have decided to build your own renewable energy source and help others in doing the same, you should go for planning about staffing requirements. The business renewable energy cannot be run without an expert, dedicated, and talented bunch of workers. You need to devise a criterion for employment and a policy to assign weightage to candidates’ test or interview scores, educational qualifications, experience, etc. to find the ideal one.

7.1 Company Staff

In this renewable energy business plan pdf, we are providing the list of company staff developed for Clean Power.

• 1 CEO to oversee all operations
• 1 Financial Manager
• 3 Electrical Engineers
• 1 Software Engineer
• 5 Electricians & Technical Assistants
• 1 Legal Expert
• 1 Web Developer & Graphic Designer

7.2  Average Salary of Employees

Financial plan of renewable energy business.

The costs incurred in running a renewable energy business are high. At the customer end as well, getting renewable energy setup installed is an expensive venture. The renewable energy suppliers must, therefore, develop a long-term financial plan. Individual financial strategies for each project will also be needed to demonstrate to the consumer how renewable energy is going to save them their dollars in the long run.

It is recommended to hire a professional financial analyst for developing an accurate financial plan. The professional expert in the field will ask you for your fundamental policies and monetary goals and develop a plan with accurate profit margins and loss assessment tables. In case you are looking for a renewable energy business for sale you may get a pre-developed financial plan for that business.

The financial plan of Clean Power is given below.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

All tables in PDF

• How do I start a renewable energy business?

To offer renewable energy service, you need to make renewable energy plan. If your business plan renewable energy covers all the aspects of your business, you are only left with the task of executing it. You need to procure the machinery, rent the space, and hire some engineers, technical assistants, and managers and you are good to go!

• Which renewable energy is profitable?

If you compare renewable energy sources, you can figure out that solar is the most profitable. It is because its scale can be minimized and extended without many constraints. In this business plan for renewable energy projects we have provided the unit sales and income generated from the solar products.

• How can I start a small energy company?

You can read the complete guide on starting a small energy company in this renewable energy company business plan. The steps would be the same except that your sphere of activity will be confined to a smaller area and your manufacturing scale may be lower than others.

• What is renewable energy in business?

In business, renewable energy is offering those resources to generate power that are never prone to depletion. As elucidated in this renewable energy business plan sample, the business includes designing customized solutions according to your consumer needs on a small and large scale.

• What are the 7 types of renewable resources?

The seven types of renewable resources are:

• Hydroelectric
• Who is the largest renewable energy company?

Tesla is the largest and most renowned renewable energy company in the United States.

• Is renewable energy profitable?

Yes! In the financial part of this renewable energy company business plan, you can see how much profits can be generated as per investment by launching this business. To ensure your business never runs into loss, you just need to make an accurate renewable energy business plan template.

• How do renewable energy companies make money?

Renewable energy companies make money by offering clean, green, and sustainable energy solutions to their customers. In this renewable energy business plan pdf, we have provided all stats for Clean Power for you to gauge how much revenue can be earned through it.

• How can I invest in renewable energy?

You can launch a franchise, start your own company, as well as invest in other startups by buying their shares or stocks. In this renewable energy business plan, you can see a stepwise guide for if you want to launch your own business.

Download Renewable Energy Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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This year’s carbon plan update has high stakes for NC offshore wind. Here’s why.

T he cost of potential wind farms off North Carolina’s coast — and what Duke Energy customers end up paying for them — will be heavily influenced by an N.C. Utilities Commission decision later this year, a TotalEnergies official says.

TotalEnergies holds one of three wind energy leases off of North Carolina. Its development area is about 22 miles off Bald Head Island, sharing a border with one leased by Cinergy, a company owned by Duke Energy.

Starting construction in those wind energy areas before 2032 is vital to securing tax credits that could equal half of the total value of their construction, said Jen Banks, TotalEnergies’ permitting and development coordinator for the company’s North Carolina lease.

Whether that happens could be heavily influenced by the Utilities Commission’s order later this year in Duke Energy’s joint carbon reduction and resource plan case, Banks said while speaking on a UNC Cleantech Summit panel on Friday.

Duke-owned Cinergy and TotalEnergies have worked together on initial surveys off the Brunswick County coast, trying to identify sights that are appropriate to anchor buoys to the seafloor that will collect information about weather and wind speeds.

The U.S. Bureau of Ocean Energy Management, which leases wind energy areas and oversees their development, is in the process of reviewing those site assessments, Banks said, with the companies expecting approvals later this year.

If those are granted, Banks said, the pace of development is heavily reliant on the Utilities Commission.

“We kind of have two paths. We could see a strong commitment from the Utilities Commission for offshore wind, and in that case we will keep moving. We could also see that there’s no solid commitment to offshore wind. In that case we’re going to have a delay, a pause in our development activities,” Banks said.

Such a pause would imperil developers’ ability to obtain key tax credits that could significantly reduce the impact building wind farms will have on utility bills.

Key tax credits

Tax credits intended to encourage the construction of offshore wind farms were among the many clean energy efforts included in 2022’s Inflation Reduction Act.

Those credits are worth 30% of a company’s total investment in an offshore wind project if developers meet wage and apprenticeship requirements, 10% if the project meets domestic manufacturing thresholds and 10% if an offshore wind farm comes onshore in a place the federal government defines as an “ energy community ” due to its links to fossil fuel industries.

Those savings could be significant, particularly considering the steep costs of building an offshore wind farm.

For instance, Dominion projects that the 2.6 gigawatt wind farm it plans to start building about 27 miles off Virginia Beach will cost $9.8 billion. If Dominion is able to hit all of the targets, it could receive a tax credit of $4.9 billion.

The bill starts to phase out those credits in the later of 2032 or when the power sector’s greenhouse gas emissions dip 75% below 2022 levels. To guarantee the incentives, Banks said, North Carolina should ramp up its offshore wind efforts by 2032.

“From our perspective it’s really an issue of not leaving dollars on the table and bringing value straight back to ratepayers,” Banks said.

Duke Energy’s plans

Offshore wind could be part of Duke Energy’s power generation mix sooner than the utility had been expecting, company officials indicated in a resource plan update filed earlier this year.

To meet increased demand while continuing to cut carbon dioxide emissions, Duke’s models showed 800 megawatts of offshore wind coming online by 2033 and an additional 1,600 megawatts online by 2035.

That was a change from the company’s original filing, in August 2023. In that version, Duke’s recommended pathway did not select offshore wind but left open the possibility of adding some turbines in the 2030s depending on market conditions like solar prices, natural gas supplies and the availability of small modular nuclear reactors.

Wind energy could play a key role in the state’s energy mix, according to a Duke official on Friday’s panel.

Turbines are always generating some power, but most importantly they tend to generate the most power on winter mornings, during winter storms and on summer afternoons. Those are the times when the demand on Duke’s grid is the highest and, in some cases, times when solar panels that aren’t paired with a battery aren’t generating power.

“We know that North Carolina, being a winter peaking state, we can’t count on solar in and of itself when we are experiencing that peak demand before the sun comes up in January. The beauty, particularly of an offshore wind resource, is it complements our system well,” said Mark McIntire, the director of Duke Energy’s government affairs team for energy, the environment and stakeholder engagement in North Carolina.

McIntire added that he also expects onshore wind to play a significant role in Duke’s future energy mix. Both the August plan and the update call for 1,200 megawatts of onshore wind by 2033, growing to 2,300 megawatts by 2038.

Duke’s January 2024 update asked the Utilities Commission to allow the utility to undergo a request for information to explore the cost of procuring 2,400 megawatts of offshore wind.

Banks and TotalEnergies said that if the Utilities Commission could provide additional certainty that Duke would buy offshore wind power, the projects could move more quickly.

She pointed to projects off of New York and New Jersey that were leased in February 2022 and have moved through permitting significantly more quickly than the North Carolina projects because developers knew there would be buyers for the power they will generate.

“We can’t make those investments past what we’ve done now until we have that certainty,” Banks said.

This story was produced with financial support from the Hartfield Foundation and Green South Foundation, in partnership with Journalism Funding Partners, as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. If you would like to help support local journalism, please consider signing up for a digital subscription, which you can do here .

©2024 The Charlotte Observer. Visit charlotteobserver.com. Distributed by Tribune Content Agency, LLC.

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Connecting the Dots: Putting Offshore Wind Energy to Work

Researchers identify optimal ways to connect offshore wind farms to benefit the grid in coastal regions.

A new study determined ideal scenarios for connecting future offshore wind projects to East Coast communities. Photo from Getty Images

The most recent U.S. Census states that 44.4 million people , or nearly 14% of the population, live along the Atlantic Coast. That is a lot of people—who need a lot of electricity. And as the country pushes to decarbonize the energy sector, that power needs to increasingly come from renewable sources, like solar and wind.

But densely populated coastlines often do not have the space needed for large solar or wind farms. That is why developers and scientists are looking to offshore wind energy to play a key role in supporting a low-carbon future for East Coast communities. And that is also why researchers at the National Renewable Energy Laboratory (NREL) and the Pacific Northwest National Laboratory (PNNL) have spent two years evaluating transmission options to make the best possible connections between offshore wind projects and communities on the Atlantic Coast.

The Atlantic Offshore Wind Transmission Study was the most thorough analysis to date of options for bringing offshore wind energy onshore to communities on the Atlantic Coast. 

The goal of the study was to identify ways to facilitate transmission of offshore wind energy to areas of high demand and reduce grid congestion, increase system reliability, maximize production, and reduce costs for consumers.

The study also informed the concurrently released Atlantic Offshore Wind Transmission Action Plan , which outlines immediate actions the United States needs to do to connect the first generation of Atlantic offshore wind power projects to the electric grid and how they can increase transmission in the next several decades.

The Benefits of Interconnection

Study authors outlined one significant step that would help lower electricity costs and enhance U.S. grid reliability—while reducing disruption to ecosystems or other ocean users. The step? Linking offshore wind energy projects to each other first rather than connecting them individually to the grid back on land.

“We found that the benefits of connecting offshore wind energy stations outweigh the costs of installing those individual connections by a ratio of 2:1 or more,” said Greg Brinkman, an NREL senior research engineer and co-author of the report along with Dave Corbus, an NREL power systems engineer, and colleagues from PNNL. “Creating these transmission networks would yield substantial savings when compared to a scenario in which each project has its own isolated transmission connections.”

To then get energy from those networks of offshore wind farms back to land, the team identified potential transmission “corridors”—sites that avoid location constraints such as military zones and shipping channels, as well as marine protected areas and artificial reefs. 

The study, which was based on a target of deploying 85 gigawatts of offshore wind off the Atlantic Coast by 2050, found that building offshore transmission in phases could help reduce risks. Study authors also suggested that the nation implement standards for high-voltage direct current technology early in the process to help developers lay new transmission lines and expand those networks in the future.

The Atlantic Offshore Wind Transmission Study was funded by the U.S. Department of Energy’s Wind Energy Technologies Office. The Atlantic Offshore Wind Transmission Action Plan was led by the U.S. Department of Energy’s Grid Deployment Office in partnership with the Wind Energy Technologies Office and the U.S. Department of Interior’s Bureau of Ocean Management.

Learn more about the Atlantic Offshore Wind Transmission Study and subscribe to NREL’s Leading Edge newsletter for more wind energy news.

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Easter 2024

Wind and sun are free, but it’s harder to get renewable energy projects built these days. Here’s why

The wind gusting across north German farm country brings much to the village of Sprakebuell: fog and rain from the sea, the occasional migrating stork, the faint smell of manure in the newly fertilized fields. And perhaps best of all, money — from selling the electricity generated by the wind turbines studding the flat green fields stretching out to the North Sea. A slice of the cash goes to the villagers themselves, with the local buy-in making this windy farming enclave near the border with Denmark a showcase for ways to push ahead with investment in renewable energy. (AP video shot by Pietro de Cristofaro)

The village Sprakebuell, Germany, is shown in an aerial photo taken Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

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The town sign for Sprakebüll is at the side of the road in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Solar panels stand on the edge of a wind farm in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. Aerial photography with a drone. (AP Photo/Frank Molter) (AP Photo/Frank Molter)

Wind turbines turn at a wind farm in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Young cows stand in a barn in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Astrid Nissen, resident of the village of Sprakebuell, stands next to an electric car in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Christian Andresen, Managing Director of Solar-Energie Andresen, speaks during a presentation in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

A photovoltaic system is installed on a building in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Food is displayed in an organic market in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

A biogas plant stands in front of a wind farm in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

Juergen Hansen, Mayor of the village of Sprakebuell, stands next to a stone with the name of the municipality in Sprakebuell, Germany, Thursday, March 14, 2024. Sprakebuell is something of a model village for the energy transition - with an above-average number of electric cars, a community wind farm and renewable heat from biogas. All houses in the village center have been connected to the local heating network and all old oil heating systems have been removed. (AP Photo/Frank Molter)

SPRAKEBUELL, Germany (AP) — The wind gusting across north German farm country brings much to the village of Sprakebuell: fog and rain from the sea, the occasional migrating stork, the faint smell of manure in the newly fertilized fields.

And perhaps best of all, money — from selling the electricity generated by the wind turbines studding the flat green fields stretching out to the North Sea. A slice of the cash goes to the villagers themselves, with the local buy-in making this windy farming enclave near the border with Denmark a showcase for ways to push ahead with renewable energy projects .

It’s not easy when headwinds from the post-pandemic global economy — including high interest rates and inflation — are holding back often costly investment in wind, solar and other forms of clean power.

That is slowing the growth in renewables needed to fend off climate change, just as it needs to speed up to meet an ambitious goal reached at the U.N. climate summit to boost clean energy capacity.

But Sprakebuell, a three-street cluster of neat one-story houses where tractor traffic outnumbers cars, has seen new life and added prosperity thanks to renewable energy . Small as it is, some of the German town’s practices offer lessons that could resonate globally.

The dividends from citizen-owned wind parks don’t make the recipients rich. Instead, the money is a little extra jingle, a financial buffer “that’s very important for us because it gives us a certain freedom,” said Astrid Nissen, 44, who with her husband manages a 150-cow dairy farm on the village’s outskirts.

Milk prices fluctuate wildly, but the steadier income from the wind parks is “something we can rely on, something we can use to plan,” she said, occasional moos coming from the barn behind her.

The whoosh, whoosh, whoosh from the turbines — inaudible in the village center but noisy up close — contribute some 400,000 euros (over $432,000) a year in taxes. That paid for a new playground, a bike path and even free piano lessons for Sprakebuell’s children.

When it comes to new projects , global hurdles include higher borrowing costs that make it more costly to fund projects, high prices and clogged supply chains for wind turbines and blades, and “not in my backyard” resistance to wind farms.

Interest rate hikes from the U.S. Federal Reserve , the European Central Bank and others have economists at University College London warning of “green collateral damage” and calling high borrowing costs meant to fight inflation “terrible news for the green transition.”

Consultancy Wood Mackenzie found that “clean energy has witnessed one of the toughest years in its short history” with government calls for more generating capacity going unfilled in Germany, Spain, the U.K. and Italy.

The situation is even more serious for lower-income countries in places like Africa, where borrowing costs for the higher up-front investment needed for renewables were already high and have risen even further.

In Sprakebuell, the number of family farms shrank from 26 in 1960 to three larger ones today, and it was on the verge of being merged with a neighboring village 30 years ago. These days, it’s home not just to farmers, but people who work a half-hour away in the city of Flensburg.

Sprakebuell’s residents put in the 20% down payment on building a wind park and local banks lent the remaining 80%. The first wind park had 24 participants; the latest one had more than 150 as word spread.

Nissen and her husband started with an investment of the equivalent of just over 5,000 euros ($5,560) more than 20 years ago. The dividends helped pay for a new calf stall, a front-end loader to shovel out animal feed and two workers.

“That means we sometimes have a free weekend, sometimes a vacation — and without employees, that’s impossible,” she said.

Not everyone takes part, but all residents see benefits. There’s a shared electric car in the middle of town that anyone can book by smartphone app for 2.50 euros an hour. A small grocery store has opened with an attached cafe, and a restaurant serves lunch daily — signs of new purchasing power. Some similar-sized villages in the region have neither.

“Renewable energy projects are visible in the landscape, and for me, it’s very important that local people can identify with these projects,” said Christian Andresen, whose company, Solar-Energie Andresen GmbH, developed the wind farms and solar installations.

Andresen’s projects illustrate factors that can move renewables forward. One is the German government’s guaranteed price for electricity over 20 years, which gives banks confidence they can lend and get paid back.

Another is low interest rate loans from the government development bank, the KfW. But even those rates have risen, from 1% a few years ago to over 5%, Andresen said.

High interest rates hold back renewables far more than fossil fuel projects. Most of the cost for renewables is up-front in the price of buying the wind turbines or solar panels, while costs to operate them going forward are negligible — the wind blows and sun shines for free.

That makes the cost of borrowing a much more important factor in whether the project will be profitable.

It’s the other way around with fossil fuels: a natural gas-fired electricity plant is relatively cheaper to build, while the real costs come later in buying the gas.

On top of that is inflation, which has raised the cost of building facilities, and equipment shortages due to jammed supply chains.

Those were some reasons Danish company Orsted cited when it canceled two large wind installations off New Jersey . Swedish utility Vattenfall also halted an offshore project in the U.K.

The S&P Global Clean Energy Index of shares in companies with clean energy-related businesses has fallen 26% over the past year, even as broader market indexes have surged to records.

In the U.S. higher rates have been a “speed bump” for some renewables projects, said David Shepheard, North American energy and utilities partner at global consultancy Baringa. “The returns are squeezed in the current rate environment” but are brightening, he said, with the Fed expected to cut rates three times this year. The overall picture is nuanced, with a slowdown in renewables by oil majors easing supplier logjams, while domestic content requirements for U.S. subsidies increase supply chain delays for some projects.

In sub-Saharan Africa, where half the population lacks access to electricity, renewable projects face even steeper challenges with financing. With lots of sunshine, solar is an obvious option , but Africa’s 1.2 billion people have one-fifth the solar power of cloudy Germany.

Borrowing costs there are far higher than in rich countries, while government subsidies are uncertain because of political upheavals and countries already deep in debt.

In Nigeria, where blackouts are an everyday event for about half of the country’s 213 million people, some 14 solar projects have stalled because the finances don’t add up.

The government has been leery of World Bank credit guarantees that would make the projects bankable, concerned about being required to pay for the power even if the grid can’t deliver it.

But without that, “nobody will develop or finance a project with a government subsidy because it can dry off,” said Edu Okeke, managing director of energy company Azura, a stakeholder in the Nova solar project in Nigeria’s northern Katsina state.

The answer can be to raise the price of electricity — which the German government did last year by 25%. That also helps secure financing. Another is subsidized interest rates or credit guarantees as part of developed countries’ efforts to help poorer nations combat climate change.

And where locals are the owners instead of big energy companies, objections to wind towers’ appearance, shadows or whooshing tend to fade, said Andresen, the wind developer.

“When I have a share in it, it’s a nice noise and a nice view,” he said.

AP reporter Taiwo Adebayo in Abuja, Nigeria, contributed to this report.

Wind and sun are free, but it's harder to get renewable energy projects built these days. Here's why

SPRAKEBUELL, Germany — The wind gusting across north German farm country brings much to the village of Sprakebuell: fog and rain from the sea, the occasional migrating stork, the faint smell of manure in the newly fertilized fields.

And perhaps best of all, money — from selling the electricity generated by the wind turbines studding the flat green fields stretching out to the North Sea. A slice of the cash goes to the villagers themselves, with the local buy-in making this windy farming enclave near the border with Denmark a showcase for ways to push ahead with renewable energy projects .

It’s not easy when headwinds from the post-pandemic global economy — including high interest rates and inflation — are holding back often costly investment in wind, solar and other forms of clean power.

That is slowing the growth in renewables needed to fend off climate change, just as it needs to speed up to meet an ambitious goal reached at the U.N. climate summit to boost clean energy capacity.

But Sprakebuell, a three-street cluster of neat one-story houses where tractor traffic outnumbers cars, has seen new life and added prosperity thanks to renewable energy . Small as it is, some of the German town’s practices offer lessons that could resonate globally.

The dividends from citizen-owned wind parks don’t make the recipients rich. Instead, the money is a little extra jingle, a financial buffer “that’s very important for us because it gives us a certain freedom,” said Astrid Nissen, 44, who with her husband manages a 150-cow dairy farm on the village’s outskirts.

Milk prices fluctuate wildly, but the steadier income from the wind parks is “something we can rely on, something we can use to plan,” she said, occasional moos coming from the barn behind her.

The whoosh, whoosh, whoosh from the turbines — inaudible in the village center but noisy up close — contribute some 400,000 euros (over $432,000) a year in taxes. That paid for a new playground, a bike path and even free piano lessons for Sprakebuell’s children.

When it comes to new projects , global hurdles include higher borrowing costs that make it more costly to fund projects, high prices and clogged supply chains for wind turbines and blades, and “not in my backyard” resistance to wind farms.

Interest rate hikes from the U.S. Federal Reserve , the European Central Bank and others have economists at University College London warning of “green collateral damage” and calling high borrowing costs meant to fight inflation “terrible news for the green transition.”

Consultancy Wood Mackenzie found that “clean energy has witnessed one of the toughest years in its short history” with government calls for more generating capacity going unfilled in Germany, Spain, the U.K. and Italy.

The situation is even more serious for lower-income countries in places like Africa, where borrowing costs for the higher up-front investment needed for renewables were already high and have risen even further.

In Sprakebuell, the number of family farms shrank from 26 in 1960 to three larger ones today, and it was on the verge of being merged with a neighboring village 30 years ago. These days, it’s home not just to farmers, but people who work a half-hour away in the city of Flensburg.

Sprakebuell’s residents put in the 20% down payment on building a wind park and local banks lent the remaining 80%. The first wind park had 24 participants; the latest one had more than 150 as word spread.

Nissen and her husband started with an investment of the equivalent of just over 5,000 euros ($5,560) more than 20 years ago. The dividends helped pay for a new calf stall, a front-end loader to shovel out animal feed and two workers.

“That means we sometimes have a free weekend, sometimes a vacation — and without employees, that’s impossible,” she said.

Not everyone takes part, but all residents see benefits. There’s a shared electric car in the middle of town that anyone can book by smartphone app for 2.50 euros an hour. A small grocery store has opened with an attached cafe, and a restaurant serves lunch daily — signs of new purchasing power. Some similar-sized villages in the region have neither.

“Renewable energy projects are visible in the landscape, and for me, it’s very important that local people can identify with these projects,” said Christian Andresen, whose company, Solar-Energie Andresen GmbH, developed the wind farms and solar installations.

Andresen’s projects illustrate factors that can move renewables forward. One is the German government’s guaranteed price for electricity over 20 years, which gives banks confidence they can lend and get paid back.

Another is low interest rate loans from the government development bank, the KfW. But even those rates have risen, from 1% a few years ago to over 5%, Andresen said.

High interest rates hold back renewables far more than fossil fuel projects. Most of the cost for renewables is up-front in the price of buying the wind turbines or solar panels, while costs to operate them going forward are negligible — the wind blows and sun shines for free.

That makes the cost of borrowing a much more important factor in whether the project will be profitable.

It’s the other way around with fossil fuels: a natural gas-fired electricity plant is relatively cheaper to build, while the real costs come later in buying the gas.

On top of that is inflation, which has raised the cost of building facilities, and equipment shortages due to jammed supply chains.

Those were some reasons Danish company Orsted cited when it canceled two large wind installations off New Jersey . Swedish utility Vattenfall also halted an offshore project in the U.K.

The S&P Global Clean Energy Index of shares in companies with clean energy-related businesses has fallen 26% over the past year, even as broader market indexes have surged to records.

In the U.S. higher rates have been a “speed bump” for some renewables projects, said David Shepheard, North American energy and utilities partner at global consultancy Baringa. “The returns are squeezed in the current rate environment” but are brightening, he said, with the Fed expected to cut rates three times this year. The overall picture is nuanced, with a slowdown in renewables by oil majors easing supplier logjams, while domestic content requirements for U.S. subsidies increase supply chain delays for some projects.

In sub-Saharan Africa, where half the population lacks access to electricity, renewable projects face even steeper challenges with financing. With lots of sunshine, solar is an obvious option , but Africa’s 1.2 billion people have one-fifth the solar power of cloudy Germany.

Borrowing costs there are far higher than in rich countries, while government subsidies are uncertain because of political upheavals and countries already deep in debt.

In Nigeria, where blackouts are an everyday event for about half of the country’s 213 million people, some 14 solar projects have stalled because the finances don’t add up.

The government has been leery of World Bank credit guarantees that would make the projects bankable, concerned about being required to pay for the power even if the grid can’t deliver it.

But without that, “nobody will develop or finance a project with a government subsidy because it can dry off,” said Edu Okeke, managing director of energy company Azura, a stakeholder in the Nova solar project in Nigeria’s northern Katsina state.

The answer can be to raise the price of electricity — which the German government did last year by 25%. That also helps secure financing. Another is subsidized interest rates or credit guarantees as part of developed countries’ efforts to help poorer nations combat climate change.

And where locals are the owners instead of big energy companies, objections to wind towers’ appearance, shadows or whooshing tend to fade, said Andresen, the wind developer.

“When I have a share in it, it’s a nice noise and a nice view,” he said.

AP reporter Taiwo Adebayo in Abuja, Nigeria, contributed to this report.

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Today, the U.S. Department of Energy’s (DOE) Wind Energy Technologies Office (WETO) announced plans to invest $5.1 million from the Bipartisan Infrastructure Law in research and technology development to advance modeling for next-generation offshore wind turbine blades. This future funding opportunity announcement will seek applications to fill critical gaps in the development of multi-megawatt wind turbines (>10 MW) for offshore wind deployment and promote adoption of sustainable wind turbine technologies across the United States.

This funding opportunity is expected to be released in Spring 2024. For more information, read the full notice of intent .