Clean energy’s surge in 2025 wasn’t a fluke. It is set to roar through 2026, with the International Energy Agency forecasting that renewables could overtake coal as the world’s top electricity source next year, led by solar and wind.

For entrepreneurs, 2026 is the moment to scale solutions and take the lead. Here are four trends that make it clear why now is the time to act.

Workers walk in between rooftop solar panels installed at a chain grocery store.

1. Renewable energy demand is creating urgent opportunities for skilled entrepreneurs

Global renewable capacity is projected to expand rapidly, with renewables expected to become the world’s largest source of electricity by 2026. Solar and wind are driving most additions, while electricity demand is forecast to grow around 3.7 % in 2026, highlighting growing markets for skilled technicians and engineers.

Why it matters for founders

Strong technical skills combined with entrepreneurial ability allow founders to launch and scale businesses in solar, distributed energy, and local clean energy services. Programs like our New Energy Academy give aspiring entrepreneurs the training and confidence needed to start their ventures. Entrepreneur Jimmy Ricohermoso leveraged the program to launch SolarXEnergy, installing tens of kilowatts across three Philippine cities and building a growing pipeline:

“The difference with studying at New Energy Academy is that you have more confidence in taking on solar installation projects… It’s not only a great training experience, but it’s also beneficial if you want to learn how to start a business.” — Jimmy Ricohermoso, Founder, SolarXEnergy

Liberate Minerals wins Supercharge Australia Innovation Challenge #3.

2. Battery and storage innovation are unlocking new market potential

Energy storage is forecast to reach 123 GW globally by 2026, about 33 % higher than in 2025. Storage and recycling innovations are critical to balance intermittent renewable output and reduce environmental impacts.

Why it matters for founders

Startups improving battery efficiency, flexibility, or recycling can access high-demand markets and partner with utilities, investors, and corporates. In Australia, the Supercharge Australia Innovation Challenge supports entrepreneurs with mentorship, investor exposure, and corporate partnerships. Renewable Metals used the program to accelerate their breakthrough recycling technology, which recovers over 95 % of materials at lower cost without toxic byproducts:

“[The Supercharge Australia Innovation Challenge] has created great momentum for our current capital raise.” — Luan Atkinson, CEO, Renewable Metals

Ima Rida, founder of Magi Farm, handles compost made by Black Soldier Fly larvae.

3. Inclusivity in clean energy is driving innovation and impact

Inclusivity is increasingly being recognized as a strategic priority in clean energy. Women only make up about 32 % of the renewable energy workforce globally, and remain underrepresented in technical and leadership roles. Diverse and inclusive teams enhance innovation, decision-making, and adoption of new solutions.

Why it matters for founders

Inclusive entrepreneurship opens new markets and strengthens networks. Communities like the Bali Women Leaders Network, supported by New Energy Nexus Indonesia, provide mentorship, funding, and community support to women-led startups. Magi Farm scaled its food waste upcycling solution through this network, reducing emissions and creating community impact:

“This collaboration with [NEX] has expanded our network. This chain of networks is valuable to us, allowing us to connect with stakeholders, catalyze progress, and achieve even more together.” — Ima Rida, Co-founder & CMO, Magi Farm

In August 2022, the first batch of TCL solar-powered low-carbon campuses was established in Xixiang County, Hanzhong, Shaanxi. This project is showcased on the Small Money, Big Change casebook.

4. Financial innovation is expanding clean energy access

High upfront costs remain a major barrier to solar adoption. Innovative financing models and institutional capital flows are essential to scale deployment. In the Asia Pacific region, more than two-thirds of green bond proceeds go to renewable energy and energy-efficiency projects, while blended finance attracts private investment where local capital is limited.

Why it matters for founders

Entrepreneurs can use innovative finance models to expand market access and scale quickly. New Energy Nexus China’s report Small Money, Big Change shows how modest, targeted investments can unlock larger funding flows and deliver outsized impact, giving founders practical pathways to attract capital, reach underserved customers, and build financially sustainable businesses.

Download the report here.

Be in the driver’s seat of the clean energy shift in 2026

Clean energy in 2026 and beyond will be defined not only by technology but by how founders build inclusive, scalable, and financially innovative solutions. Renewable growth, storage innovation, diversity, and smart financing create opportunities across the ecosystem. With the right skills, networks, and programs like those offered by New Energy Nexus, founders can scale impact and shape the energy transition while building resilient businesses.

Ready to kick off an even stronger 2026? Explore how we can back your clean energy solution today at join-nex.co/programs.

In August 2022, the first batch of TCL solar-powered low-carbon campuses were established in Xixiang County, Hanzhong, Shaanxi.

This year, China has outpaced the world in the shift to clean energy, and it’s quickly progressing into a new phase.

Rural communities will be key to this development. They not only bear the brunt of climate impacts but also hold enormous potential to drive economic growth, social inclusion, and environmental gains. Yet they face persistent energy transition challenges and remain overlooked, with an annual funding gap of roughly 2 trillion RMB [US$282 billion] that government resources alone cannot fill. Addressing this gap requires smart, targeted interventions that can stretch limited funds into transformative impact.

New Energy Nexus China’s “Small Money, Big Change” shows how modest, strategically deployed investments can unlock far larger capital flows. By blending policy, market, and philanthropic resources—and grounding projects in local trust and participation—small sums can generate outsized impact: boosting incomes, cutting emissions, improving living standards, and creating inclusive industries.

China’s rapid clean energy expansion illustrates the power of these approaches, offering lessons that extend across the Global South. Here are five key takeaways:

1. Clean energy boosts rural livelihoods.

Renewable energy is more than a climate solution. When projects address concrete community needs, they create new income streams, strengthen resilience, and improve quality of life.

We learned it from the TCL Foundation’s low-carbon campuses.

1.6 MW of solar power was installed across 27 schools, cutting 40,000 tons of CO₂ and generating 17.4 million RMB (US$2.5 million) for education. This showed how philanthropic capital can fund sustainable infrastructure that benefits communities directly.

2. Blended finance makes the impossible possible.

The biggest wins come when public, market, and philanthropic capital work together. Each plays a unique role, and real breakthroughs happen where they intersect, bridging funding gaps and reducing risk.

We learned it from the Dalad Banner Wind Cooperative.

In Inner Mongolia, 132 village collectives co-invested with the government and banks in a 75.6 million RMB [US$10.7 million] wind farm. Each village received guaranteed annual dividends, demonstrating how blended finance can create both financial viability and equitable local benefits.

3. Technology and governance unlock hidden potential.

Digital tools, fintech, and transparent governance models help rural communities access capital, manage risk, and scale solutions faster. Technology alone isn’t enough—participatory management ensures long-term sustainability.

We learned it from Trina Solar and MYbank’s AI-enabled solar financing model.

Data-driven risk models lowered loan rates by 21% for small PV distributors in the “last mile”, expanding access to solar for households while maintaining zero defaults, illustrating how innovation in financing and governance unlocks local potential.

4. People must be at the center.

A just energy transition puts communities, workers, and women at the heart of clean energy projects. Training, shared ownership, and empowerment ensure projects deliver dignity, opportunity, and lasting benefits.

We learned it from the Tianmen women drone pilots.

A 30,000-RMB (US$4,237) seed fund trained over 100 women to operate agri-drones servicing more than 1 million hectares annually, creating new income streams and reducing pesticide use, showing the power of people-focused interventions.

5. Ecosystems scale solutions, not isolated projects.

Long-term transformation requires collaboration across government, finance, enterprises, and communities. When capital flows, policy innovation, and local participation align, isolated projects evolve into replicable ecosystems.

We learned it from Tencent SSV’s solar trust model.

A “charity + capital” trust funded rooftop PV, while surplus revenues supported health and education programs, providing a blueprint for integrated, community-centered clean energy ecosystems.

Small investments, when paired with trust, technology, and collaboration, can generate systemic impact—showing how inclusive, sustainable clean energy is possible for communities across China and the Global South. Read more about these initiatives and how we can make a bigger impact: Download our casebook today.

New Energy Nexus in China

New Energy Nexus (NEX) is a world-leading clean energy accelerator dedicated to advancing the global energy transition. In China, NEX China carries this mission forward with a local, hands-on approach—providing tailored consulting, business matchmaking, and support to governments, industrial parks, universities, and enterprises of all sizes. By identifying and scaling innovative energy transition solutions, integrating resources, and building both online and offline collaboration platforms, NEX China connects entrepreneurs, investors, research institutions, and policymakers.

Learn more about clean energy opportunities in China here.

Climate finance is at a crossroads. Record levels of capital are flowing into the sector, yet far too little is reaching the communities and entrepreneurs in the Global South who need it most. Without affordable, accessible finance, clean energy startups in emerging markets cannot scale their innovations, jobs remain unrealized, and the global transition slows.

That urgency drove our recent New Energy Nexus webinar, Unlocking Private Capital for Climate Financing in the Global South Through Guarantees. Hosted by Jennifer Wang, Director of Financial Innovation at New Energy Nexus, the discussion brought together:

• Upendra Bhatt – Co-Founder & Managing Director, cKinetics and Board Member, cKers Finance, with deep experience in structuring climate finance vehicles in India and beyond.
• Christina Borsum – Chief Financial Officer, New Energy Nexus, overseeing the organization’s global financial strategy and innovative capital mobilization.

Together, they unpacked why guarantees and blended finance instruments are key to redirecting private capital to underserved markets, and how donors and investors can help accelerate impact.

Key takeaways

1. Guarantees de-risk capital and crowd in private investors

Guarantees can absorb early losses or perceived risks, making it easier for private lenders and institutional investors to enter emerging clean energy markets. This “first-loss” approach reduces barriers and catalyzes multiples of commercial capital without an upfront outlay of cash.

2. Financial innovation is as important as technology innovation

Adoption of EVs, solar, storage, and efficiency technologies won’t scale without equally innovative financial tools that address the diversity of investor risk profiles. Credit guarantees and other credit enhancements, as well as catalytic finance mechanisms, are just as vital as the hardware. They have a truly catalytic effect when applied to solutions where the business case is there, but financing is impeded by actual and perceived risks.

3. Guarantees have the power to catalyze local financial sectors

Most new energy demand growth is in Asia and Africa. Yet financing there is still scarce and expensive compared to the Global North. Unlocking capital for clean energy ecosystems in these regions is both the biggest challenge and the greatest opportunity for climate action. Guarantees have the dual benefit of unlocking this capital and increasing accessibility for local financial institutions to participate, especially when paired with technical assistance and other wrap-around support.

4. Electric vehicles in the Global South are an ideal use case

In many countries in the Global South, EVs (in particular two and three-wheelers) form an important part of the informal economy, with delivery drivers, for instance, who depend on their vehicles for their livelihood. The total cost of ownership in these countries is often already at parity or lower than their fuel-based counterparts; however, the upfront cost is still higher. That’s where financing comes in to ease that upfront burden, and where guarantees can come in to make that financing more accessible and affordable.

5. Donors and philanthropy play an important role

Grant funding and concessional capital remain essential to seed first-mover products and ecosystems. By absorbing higher risks early, donors can pave the way for commercial investors to follow, creating a multiplier effect on impact and scale.

Why New Energy Nexus?

At New Energy Nexus, we’ve supported over 10,000 entrepreneurs, distributed $84 million in catalytic capital, and helped create 8,300 green jobs worldwide. We know that entrepreneurs hold the solutions to the climate crisis – but they need equitable access to finance to succeed.

Our work in financial innovation is about more than moving money; it’s about shaping markets to be inclusive, just, and future-ready. By pairing guarantees and blended finance structures with our global entrepreneur network, we aim to close the funding gap in the Global South and accelerate the transition to 100% clean energy for all.

The path forward

Guarantees aren’t just technical instruments; they’re tools for justice. They bridge the divide between where capital sits and where innovation is happening. With donor leadership, investor participation, and entrepreneurial energy, we can transform today’s fragmented flows into a surge of climate solutions.

Interested in partnering or learning more? Visit newenergynexus.com or contact our team to explore how you can catalyze climate finance in the Global South.

Photo by Cory Mus

The clean energy transition is stalling where it matters most. Emerging markets and developing economies (EMDEs) receive just 20% of global clean energy investment—and only 12% of mitigation finance flows reach EMDEs, excluding China [IEA, 2021; CPI, 2024].

Climate innovation isn’t scarce, but access to capital, coordination, and visibility still are. That’s the reality facing thousands of climate entrepreneurs across the Global South, and it’s the challenge that brought 50 investors, entrepreneurs, ecosystem enablers and policy leaders together at the 2025 Global Climate Finance Forum (GCFF) in Montego Bay, Jamaica.

Hosted in a region that exemplifies both climate vulnerability and entrepreneurial resilience, GCFF was unlike most climate convenings. It wasn’t a stage for panelists; it was a platform for co-creation. Founders from across Asia, Africa, Latin America, and the Caribbean shared how they’re repowering communities, whether through distributed solar, agroforestry, or second-life batteries. Investors listened. And crucially, they rolled up their sleeves to ask: what’s stopping us from backing more of this?

The financing system is still wired for the wrong contexts

Today’s climate finance architecture is not designed to serve the small and growing businesses building climate solutions in high-need, high-potential markets. Less than 15 cents of every climate finance dollar crosses a national border, as host Marilyn Waite mentioned, and just 12% of mitigation finance reaches emerging markets outside of China.

Worse still, clean energy entrepreneurs in the Global South face interest rates as high as 27%, currency swings of 300% or more, and investor mandates that demand “anchor” deals before deployment can even begin. These systemic distortions aren’t just barriers, they’re missed opportunities. And there are entrepreneurs brimming with ideas and already delivering results, from GridAfrica’s distributed energy systems in Zambia, to Swap Energy’s EV battery swapping stations in Bali, to SolarKita’s residential solar expansion across Indonesia.

Limited track records, gaps in financial literacy, and lack of exposure to global capital markets mean they often fall outside traditional investment criteria. And support systems—such as accelerators, impact measurement frameworks, and governance mentoring—are less accessible than for their Global North counterparts. Meanwhile, climate finance ecosystems and policy frameworks often skew toward larger, established firms, leaving SMEs underrepresented on global stages like COP and at investor convenings.

What GCFF made clear: the climate finance system needs rewiring—fast

Participants at GCFF agreed that unlocking finance for climate SMEs demands:

• Locally rooted solutions: The Global South is not a monolith. Funding tools must reflect regional realities and be led by on-the-ground intelligence.
• Targeted catalytic capital: Risk is also not a monolith. Can we break down the components of risk that hold back lenders and investors and apply mitigants to each one to catalyze the overall impact? For example, addressing macroeconomic risks separately from asset risk and project risk, bringing in an anchor in the form of forward revenue contracts, etc.
• Aligning local financial institutions’ capital with SME needs: supporting local financial institutions has the catalytic benefit of transforming local financial systems as well as avoiding the risks that come with foreign capital (eg currency risk). BRAC Bank’s forthcoming private bond issuance will enable them to lend at tenures that match SMEs’ cash flow needs.
• Standardized, flexible frameworks: creating standardized processes and terms and conditions that are also regionally adaptable, so that investors don’t have to reinvent the wheel for each deal.
• Leveraging existing scale and expertise: existing intermediaries like funds, incubators/accelerators, and locally-led thought leaders, have the experience and infrastructure to not only create pools of vetted SMEs to fulfill deal size minimums, but also provide much-needed education and knowledge-sharing for both SMEs and investors.
• Looking for and amplifying the upside: Despite the key role SMEs play in deploying climate solutions and boosting local economic development, there is very little attention given to Global South SMEs on global stages like COP, and even less on the untapped investment opportunities they represent. Something that all of us can do is to continue to amplify the stories of on-the-ground entrepreneurs we encounter and showcase their success stories.

These priorities echo the International Energy Agency’s findings: that unlocking clean energy in developing countries is twice as cost-effective as in advanced economies and requires seven times more investment than they currently receive.

This is where New Energy Nexus is focused

At New Energy Nexus, we have provided that scale and expertise to ease the connection between investors and SMEs. Over our 20-year history, we’ve supported nearly 10,000 entrepreneurs across 12 countries through our locally-led incubators, accelerators and convenings—mobilizing over US$4.7 billion in follow-on investment with just US$84 million in catalytic capital.

Through our Financial Innovation programs, we structure and incubate catalytic structures like the Indonesia Fund I and our EV Guarantee Facility in India, to bring tailored approaches to mobilize private capital into Global South climate ecosystems. Our Financial Innovation focuses on three things:

1. Deploy catalytic capital that de-risks early-stage investments and proves the market.
2. Design bespoke financial instruments like guarantees and blended finance structures that unlock larger flows.
3. Build ecosystems—connecting local banks, accelerators, and government partners to ensure financing tools stick.

What’s next: From conversation to capital

The message from Montego Bay was clear: climate entrepreneurs across the Global South are ready. What they need now is finance that meets them where they are—structured for risk, region, and reality.

As the world moves toward COP30, the priority must be shifting more capital—faster—into the hands of local innovators. That means:

• Expanding catalytic and blended finance to de-risk early-stage solutions
• Supporting local financial intermediaries who understand the context
• Making climate SMEs visible and investable, from term sheets to storytelling

New Energy Nexus is one of many ecosystem actors already building these pathways. But to meet the moment, we need aligned action from funders, governments, and investors willing to back innovation—not just in technology, but in finance itself.

Let’s ensure the next wave of climate finance reaches the people and places where it matters most. Reach out to partner with us!

Jennifer Wang, Director of Financial Innovation at New Energy Nexus

Speakers at the ConNEX Workshop: Securing Working Capital & Advanced Financial Planning

On July 25, 2024, we hosted a virtual workshop on Advanced Financial Planning, attended by entrepreneurs from all over California and as far as Ethiopia. The event provided insights into the unique financial landscape for clean energy startups and featured the following speakers:

• Moderator: Shawn Garvey, Founding Director, Momentum X Ventures
• Chante Harris, Founder & Managing Partner, Eunoia Group
• Scott Pitts, Founder, Socket Capital
• Erin Davis, Co-Founder & COO, Enduring Planet

Key Takeaways

Chante Harris: Navigating Risks and Finding Value

Harris delved into the shifting landscape of clean energy funding. She highlighted the necessity for startups to communicate their intrinsic value beyond their technology and look for additional revenue and collateral options. Harris discussed blending public and private capital to transition projects from the research phase to viable businesses.

Harris also highlighted the importance of doing product market fit work before the product is ready. She encouraged entrepreneurs to ask:

“Who’s started to think about earmarking money for the specific problem you’re solving, and if they haven’t done that yet, how do you get them to?”

Scott Pitts: Creative Funding and Cash Flow Management

Scott Pitts shared insights on creative funding solutions, emphasizing the importance of finding financing partners who are open to innovative approaches. He provided the example of how his financing partner bought equipment and resold it to the startup, using collateral to secure more funding. Pitts discussed the need for high-fidelity cash flow forecasts and building strong relationships within the industry – before needing to ask for money.

“If you only manage your business based on the money you have in the bank, you have a capacity issue,” explained Pitts. He encouraged leveraging incubators and local venture/angel groups to find supporters passionate about clean energy.

“Find lovers with money.”

He urged entrepreneurs to find people who are excited about their technology and have the resources to invest.

Erin Davis: Simplifying Equity Raises and Financial Maturity

Davis encouraged founders to use SAFE notes (Simply Agreement for Future Equity) using the Y-combinator template. She stressed the importance of securing non-dilutive capital quickly and bridging funding gaps with loans. Davis highlighted the significance of maintaining well-organized financial records and building a robust pro forma. She encouraged companies seeking early-stage financing to visit Enduring Planet’s website and apply.

Strategic Advice for Startups

The session concluded with strategic advice for startups. Pitts emphasized the importance of having a backup plan and advised being prepared for potential capital crunches. Harris encouraged treating regulatory requirements as drivers of innovation and leveraging networks to increase funding access.

Resources & Tools

Funders & Accelerators

• Elemental Excelerator
• Enduring Planet
• Activate
• LACI
• The Clean Fight – New Energy Nexus

Grant Writing

• Climate Finance Solutions

Recruiting

• Climatebase
• Climate People

Financial Management

• Climate Finance Tracker: funding transparency tool
• CARTA: SAFE Note management tool
• Boundless Impact: Life cycle analysis
• MainStreet: Tax credit platform

Special thanks to our partner, Momentum, and funder, The California Energy Commission.

How did we do? Please take a short survey to help us improve this workshop series.