Wednesday, September 19, 2007

Got Financial Innovation?

Gristmill hits the nail right on the head when they say "the next few significant developments in the solar field are going to be in the field of financial rather than technical innovation."

Let's take a look at what sorts of financial innovation are needed to advance clean energy. I've already discussed green mortgages and subsidies. But what about other more subtle innovations? I predict there is money to be made in the trading of solar exploitation rights. Perhaps you can sell the right to develop your rooftop, even if you don't want to buy the solar power yourself. Or weather futures as a financial instrument to reduce the risk of cloudy days.

There is no limit to the number of new financial tools that could be developed to further green energy development.

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