The renewable energy industry faces a surprising contradiction.
Even as the industry deploys cutting-edge technology in the field, the financial infrastructure supporting the sector often relies on tools that would look familiar to analysts from decades ago.
Global investment in clean energy reached $728 billion in 2024. Yet many of the organizations financing this transition are managing complex project portfolios with surprisingly basic tools, creating an efficiency gap that could hinder the industry’s ability to hit the trillion-dollar scale.
The problem? A software deficit.
A new industry survey conducted by Banyan Infrastructure reveals the challenge: two-thirds of borrowers and 27% of lenders in renewable energy finance report using no specialized software whatsoever to manage their funds and portfolios. Among those using any software at all, over 60% rely primarily on Microsoft Excel and Google Sheets.
For an industry managing billions in assets and aiming to accelerate deployment, this technology gap represents more than an administrative hurdle. It’s a strategic vulnerability.
“The renewable energy finance market is operating in silos rather than as a cohesive ecosystem,” explained Kyle Nesselbush, senior associate at Advantage Capital. “Without a central platform to manage our projects, it’s tough to streamline our data collection and portfolio management processes.”
The operational burden is substantial. Thirty percent of respondents spend at least five hours weekly on origination and underwriting tasks per deal, with another 25% dedicating similar time to compliance and reporting. For teams handling dozens of projects simultaneously, these administrative tasks can consume resources that might otherwise advance growth objectives.
For example, when SMBC Bank standardized its approach, the results were dramatic: 40% faster origination processes and expanded portfolio diversity — all without extra overhead.
Growth ambitions meet process constraints
The renewable energy sector isn’t lacking ambitious goals. Among lenders surveyed by Banyan Infrastructure, 87% list portfolio growth as a primary objective for 2025, and 80% aim to expand their investment appetite for different deal types, structures, and sizes.
These aspirations face practical operational hurdles. Each lender evaluates projects using their own metrics and methodologies, creating a fragmented ecosystem that introduces friction into transactions at every stage. Without standardized frameworks, expanding into new project types or geographies requires developing custom evaluation processes, slowing deal velocity and increasing overhead.
The contrast with other financial sectors is instructive. Residential lending uses standardized FICO scores to efficiently assess borrower risk. Commercial real estate has established benchmarks for key metrics. But the renewable finance sector largely lacks these standardized assessment frameworks.
Both borrowers and lenders recognize the challenge. Nearly two-thirds of survey respondents acknowledge that a robust digital strategy is crucial for achieving their business goals in 2025. And yet, only 38% plan to increase their technology investments this year, creating a gap between strategic vision and action.
“Project finance professionals intellectually know that for the cost of the software, you will save time, you’ll get more money back; it’s a clear ROI,” explained Amanda Li, co-founder of Banyan Infrastructure. “In general, people understand that to operate well, you will need digital transformation.”
The difficulty, Li explained, is that organizations often delay process changes until operational pain becomes acute — when leadership discovers significant portfolio management issues or when administrative burdens begin to limit growth.
For smaller renewable energy projects, these transaction costs become particularly problematic. Distributed energy resources — community solar, commercial installations, and microgrids — require similar due diligence to utility-scale investments, but generate lower absolute returns. Without streamlined processes, these smaller projects face disproportionate transaction costs despite their strategic importance to the energy transition.
The standardization opportunity
The renewable energy industry’s measured outlook for 2025 — 53% of survey respondents expressed neutrality about prospects for significant growth — suggests many organizations are taking a wait-and-see approach before making substantial operational changes.
But organizers that lead standardization efforts may secure a competitive advantage. Beyond internal efficiency, standardized processes enable more market liquidity and diverse capital sources — both critical for an industry with ambitious deployment targets.
After solving the technological challenges to make renewable energy cost-competitive, the industry now faces a different kind of innovation opportunity in financial infrastructure.
This is partner content, brought to you by Banyan Infrastructure. To dive deeper into the industry survey results and practical next steps, download Banyan Infrastructure’s report briefing here.
