Guides · Energy and infrastructure deals
How to Raise Capital for an Energy Project
Raising money for a solar, wind or other renewable project can feel slow. A question from Pete at one of our webinars shows why. His renewable energy company was finding it hard to get capital and he asked how best to pitch it. My answer started with people, not with the pitch deck.
This guide walks through the order I would follow. Start with the people who already trust you. Then look for partners who can lower your costs, think about structure, and match your project to investors who want that kind of deal. Many sponsors talk to a securities attorney about anything legal or tax related.
- 1Start with people who know you
- 2Move them up the trust curve
- 3Find a strategic corporate partner
- 4Ask the big partner to co-fund
- 5Plan the equity and sponsor role
- 6Consider revenue sharing structures
The steps
Step 1. Start with people who know you
When Pete asked how to pitch renewables, I told him to start with three questions. Who already knows you well? Who knows the energy industry well? Who is local to you? Those people are already up the trust curve. They do not need a long education from you. Make a list of names that fit at least two of those three. Call them before you build a big outreach list. Warm conversations also teach you what investors ask about before you meet colder ones.
Step 2. Move them up the trust curve
Knowing you is only the start. Move these people up the trust curve as fast as you can. Share the project, the team and the plan in steps. Answer questions directly and follow up when you say you will. Each small promise kept makes the next ask easier. I would do this before I ever send a deck to a stranger. A warm introduction from someone who already trusts you carries more weight than a cold email.
Step 3. Find a strategic corporate partner
I would look for publicly traded companies and corporations that would strategically benefit by partnering with you and helping you lower your costs. Think about who gains if your costs come down. Many people go out and say they need to raise twenty million dollars. If a bigger partner gave them infrastructure access, they might only need to raise six or eight million. Make a list of companies in your supply chain or region that would gain from your project and approach them with a specific ask.
Step 4. Ask the big partner to co-fund
Go one step further. A big brother partner might provide half the funding plus the infrastructure, if you can find the other half. That changes your pitch. Investors see a partner already committed instead of a request to fund everything. Ask each corporate partner three things. Will you provide infrastructure? Will you co-invest? Will you introduce me to others? Even a no tells you what to fix before your next conversation.
Step 5. Plan the equity and sponsor role
Someone asked me if it is realistic to raise 100 percent equity on a commercial development. I guessed most sponsors put up five or ten percent, sometimes a bit more. Some sponsors raise all of it, but on a first raise you may give up more of the economics. A co-GP who can get the raise done may be worth it, because never reaching the finish line is a massive risk on a first, second or third deal. Another route is to partner with a sponsor who closes deals like yours all day. Many sponsors talk to a securities attorney about how to set this up.
Step 6. Consider revenue sharing structures
Think creatively about structure. On one family office panel, a guest told the story of Chicken and Pickle. They had the land and the capital. Instead of taking a large rent, they share in the revenue. They also do reverse build to suit. The concept is now at 20 locations nationwide. For an energy project, ask what you own or control that a partner could value, such as land or access. Then ask whether a revenue share could replace a fixed payment. Many sponsors talk to an attorney about any structure like this.
Step 7. Match the project to investor mandates
Ask investors what they already have capital for. When I asked an interview panel which deal type they could move fastest, one answered with a solar energy deal in Qatar alongside Breakthrough Energy Ventures. Stephen said most deals he sees in Southern Africa are solar or wind. On a family office panel, one investor said they were very interested in energy storage. We also talked about how AI infrastructure needs energy behind it. Learn each investor's focus, then pitch only what fits.
Step 8. Put the connection first
One lesson from that interview stayed with me. The advice was, first the connection, then the solution. Build the relationship before you push your terms. Also check the roles on any investor team. On that panel, one member did diligence on whether the renewable energy was worth investing in and another handled the finance. Ask who does what so your materials answer each person. Run your own diligence on any group that offers fast capital. Many sponsors also talk to a securities attorney.
From my talks
"Who already knows you well, who knows that industry well and who's local to you? Those are the people who are already up the trust curve."
"If they had a big brother partner that gave them some infrastructure access, maybe they only need to raise six million or eight million dollars."
From my books and event talks
One more thing I have seen work on bigger numbers. You can raise capital faster if the project is ridiculously credible, or if you marry a small project with a joint venture partner that has a billion dollar balance sheet. Collateral matters too. If you can offer a moderate to strong type of collateral that does not put everything at risk if things go sideways, you may be able to raise more capital. I would think hard before putting up heavy collateral or personal guarantees that put everything at risk. I would raise slower instead.
"But we've heard from many people here in the room, you can raise capital faster and do the big numbers faster if you're raising capital for something that's ridiculously credible, or you take your small project and marry it with a joint venture with a really billion dollar balance sheet quality group."
"Collateralize your whole net worth, or personally guarantee debt stuff where it can blow you up, I would not do that. I would raise capital slower and just not do that. But if you can find some type of collateral, a moderate to strong type that doesn't blow up everything in case things do go sideways, you'll definitely raise a lot more capital if there's collateral in place."
What trips people up
- Pitching cold strangers before talking to local people and people who already know the industry.
- Announcing a large raise number without checking whether a corporate partner could lower the cost.
- Aiming for 100 percent equity on a first deal with no plan for reaching the finish line.
- Sending the same pitch to every investor instead of matching each investor's mandate.
- Accepting an offer of fast capital without running your own diligence.
Key facts
- Pete asked how to pitch renewable energy because finding capital had been challenging, and the first advice was to look at people already close to the founder and the industry.
- A guest on a family office panel described Chicken and Pickle, where a revenue share replaced large rent and the concept reached 20 locations nationwide.
- An investor on our energy mandate interview named a solar energy deal in Qatar, in cooperation with Breakthrough Energy Ventures, as the top deal they were working on.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Ultra-Wealthy Investor Q&A Webinar, Investor Mandates & Creative Deal Structures: Family Office Panel, Global Solar, Wind, and Renewable Energy Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around sponsor equity structures, revenue share agreements and offering documents. Do not use AI to write your own legal agreements.
Questions about this guide
Who should I approach first when raising money for a renewable energy project?
Start with people who already know you, people who know the energy industry and people who are local to you. They are already up the trust curve, so you can move them along faster than strangers.
Can I raise 100 percent equity for a development?
Some sponsors do, but I would expect most sponsors to put up five or ten percent on commercial development. On a first raise you may give up more of the economics. A co-GP or an experienced sponsor can reduce the risk of not finishing. Many sponsors talk to a securities attorney about how to structure this.
How can I reduce how much I need to raise?
Look for publicly traded companies and corporations that would benefit from partnering with you. A partner that provides infrastructure access, or even half the funding, can shrink the amount you need from other investors.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
- How do I raise money with no track record?I would raise money without a track record by focusing on credibility, relationships, and evidence of my ability to execute.
Use the dilution calculator alongside this guide.