Energea connects investors to premium renewable energy projects in order to accelerate renewable energy development in select global markets.
Before co-founding Energea, Mike Silvestrini founded one of the largest commercial and industrial solar firms in the U.S. and managed renewable energy funds worth over $500 million in aggregate. His partner, Chris Sattler, also founded a leading deregulated energy supply business with over one million customers.
How It Works
Energea sells equity in distributed solar projects across the United States, Brazil, and Africa. Each project is structured as its own LLC where investors can purchase shares. The platform programmatically determines the share price based on the project stage to ensure every shareholder realizes the same IRR.
As the projects generate power and revenue, the company covers any expenses and shareholders receive any residual cash flow as a dividend. These dividends can are paid monthly and may be optionally reinvested into the project to benefit from the magic of compounding interest.
The company charges a 1% to 2% management fee on any dividends paid each month (there's no charge if there's no dividend). In addition, there's a 20% to 30% carried interest on investment returns (equity appreciation) above a specified benchmark.
Energea's equity is inherently illiquid, meaning that you cannot easily convert it into cash. Currently, the company requires investors to hold their shares for at least three years, although there are plans to introduce greater liquidity by the end of 2022.
The company also operates in emerging markets and may receive payment in foreign currencies. While its contracts have inflation adjustments and protections built-in, there's always a risk that the company's projects could go sideways and investors could experience losses.
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Oct 03, 2023
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Jul 22, 2022
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Impact FocusRenewable Energy
- Earn up to a 12% return by investing in rooftop solar projects around the world.
- View your investment performance and environmental impact in a real-time dashboard.