Encouraging investment in renewable energy through data-driven analytics and financial solutions for SMEs
1 Eastern Illinois University, Charleston, USA.
2 Department of Sustainability, Eastern Illinois University, Charleston Illinois, USA.
Review
World Journal of Advanced Science and Technology, 2024, 06(02), 058–069.
Article DOI: 10.53346/wjast.2024.6.2.0054
Publication history:
Received on 02 October 2024; revised on 09 November 2024; accepted on 12 November 2024
Abstract:
The transition to renewable energy is critical for mitigating climate change and reducing dependence on fossil fuels. However, small and medium-sized enterprises (SMEs) often face significant financial and informational barriers when attempting to invest in renewable energy solutions. This paper examines how data-driven analytics and tailored financial solutions can play a pivotal role in encouraging renewable energy adoption among SMEs. By leveraging advanced data analytics, SMEs can gain insights into energy consumption patterns, cost-saving opportunities, and the potential environmental impact of renewable energy investments. Financial solutions, including green loans, performance-based incentives, and government-backed subsidies, provide SMEs with accessible, scalable pathways to finance renewable energy projects. This approach fosters an environment where SMEs can evaluate return on investment (ROI) more effectively, minimizing risk and promoting sustainable energy practices. Additionally, the paper discusses the role of partnerships between financial institutions, technology providers, and policy-makers in developing innovative financial products tailored to SMEs’ needs. Findings suggest that the combined use of analytics and strategic financial support can significantly enhance SMEs’ participation in the renewable energy sector, contributing to broader environmental and economic sustainability goals.
Keywords:
Renewable energy; Data-driven analytics; Financial solutions; Sustainable energy adoption; Green finance
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0