Energea is a crowdfunding platform that makes it easy for anyone to invest in solar energy with as little as $100. With over $100 million in assets under management and an 11%+ internal rate of return, the platform has a strong track record of generating attractive returns, making it an excellent way to invest in sustainability.
Let's look at Energea and why you might want to consider it as a way to diversify your portfolio and help the environment.
Who's Behind Energea?
Mike Silvestrini and Chris Sattler co-founded Energea after selling their previous solar businesses.
Silvestrini founded one of the U.S's largest commercial and industrial solar firms and managed multiple renewable energy funds worth over $500 million in aggregate. Meanwhile, Sattler is a serial entrepreneur that founded a leading deregulated energy supply business that provided power to over one million customers.
The two set out to make solar energy projects accessible to everyday investors—not just institutional financiers—by handling everything from project management to currency conversions.
How Energea Works
Energea offers equity in a range of solar projects across the United States, Brazil, and Africa with varying levels of return. In general, investors receive any residual cash flow—from selling electricity—after expenses. As an example, the company's Brazil projects offer an estimated 14% to 16% unlevered internal rate of return (IRR).
The company charges two types of performance-based fees:
- Management Fee: A 1-2% fee on any dividends paid each month (there's no charge if there's no dividend).
- Carried Interest: A 20-30% fee on investment returns (equity appreciation) above a specified benchmark.
It's relatively easy to get started:
- Choose between an Individual or Business account.
- Confirm that you're a U.S. resident over 18 years old with a valid Social Security number.
- Enter a name, email, and password.
- Click Create Account.
- Confirm your email.
Next, you'll input your personal information, bank account information, and accredited status. After completing the accredited status page, you will see how much you can invest per year. You can then manage your portfolio of solar projects using the web-based dashboard showing the equity value and dividends accrued over time.
Pros & Cons to Consider
Energea offers truly compelling rates of return along with an opportunity to support the transition to renewable energy. Investors can choose between safer markets, like the U.S., and emerging markets offering higher returns. Through long-term utility contracts, investors can also realize attractive income levels—not just capital gains.
There are a few risks to keep in mind:
- Returns are not guaranteed and may vary based on project success, currency movements, or other factors.
- You must hold equity investments for at least three years before selling them back to the company (see terms).
The Bottom Line
Energea provides a unique opportunity to invest in renewable energy projects around the world. With attractive returns and income-generation, it's ideal for investors in retirement or those that want to build value through dividend reinvestment. However, there are some risk factors to keep in mind before investing in the platform.
5out of 5 stars
- Invest in renewable energy projects and collect dividends as they sell energy.
- Realize an attractive 11%+ IRR on projects with global diversification.