Tokenization in Action: How Plural Makes Green Investing Easier and More Profitable

Our last blog unpacked the what, how, and why of tokenization. This time, we’re exploring the bigger picture to answer investors’ most common question:?

How do Plural’s security tokens increase the appeal of renewable energy investing??

From financing challenges to misconceptions about clean energy’s ROI to newfound market access, here’s an investor’s guide to understanding tokenization with Plural.

Renewable Energy’s Messaging and Financing Problem

Let’s begin by reframing a common misconception: Renewable energy doesn’t lack profitability. In reality, it’s a compelling asset class full of promise.?

Whether solar farms, wind installations, or other ventures, many clean power projects offer returns above 10% and benefit from long-term power purchase agreements that provide steady cash flows.?

The real reason you likely haven’t considered adding them to your portfolio (or struggled if you tried)? A small group of large institutional investors dominates the market.

But access isn’t the only problem. Those big investing bodies typically overlook smaller and mid-sized projects.

As a result, projects that cost less than $100 million often struggle to find the capital they need, frequently failing to take off at all — despite the surging global demand for clean energy and its yield-generating potential.

Why It’s Hard for Most Investors to Get In

It’s not that others don’t want in—plenty of people and organizations would jump at the chance to invest in clean energy. The deterrent lies in the current system, where complicated processes and high costs keep smaller investors out.?

Right now, two main issues make it tough for a wider range of investors to participate in renewable energy deals:?

1. High upfront costs: identifying the right project, conducting due diligence, and finalizing legal and financial details is time-consuming and expensive. For mid-sized projects, these “soft costs” can quickly eat into profits, making the investment less appealing unless you’re a major player who can afford the overhead.
2. Inefficient market structure: there’s hardly any real secondary market for these investments. Most deals involve a single investor or a small group, and selling any portion of the investment later can be a pricey headache. All the legal checks and administrative steps required to transfer ownership make it not worth the effort, so investors often feel stuck. Without an easy way to exit, fewer people are willing to dive in.

That’s where Plural comes in.

Unlocking a Broader, Deeper Pool of Capital

Instead of forcing small and midsized clean energy ventures to finance within outdated market structures (which really only work for large institutional deals), we divide ownership stake in renewable energy projects into digital securities, also known as security tokens recorded on an immutable blockchain.?

We also embed all tokens with strategic smart contracts. This allows us to:?

• Reduce the marginal cost and bureaucratic life of adding new investors. With lower overhead, more investors can join in, and deals can be structured to allow smaller fractional investments.
• Simplify the process of buying and selling stakes, which helps create a secondary market.
• Connect forward-thinking clean energy developers/owners with investors who want exposure to renewable assets.

In our view, tokenization isn’t about skirting regulations. On the contrary, Plural acts as an SEC-registered Broker-Dealer and Transfer Agent, allowing us to supercharge compliance, transparency, and efficiency within existing SEC frameworks.

By doing so, we create a familiar, safe environment for a world of potential backers—ranging from informed individual investors to smaller investment funds—to tap into a vast “river of capital” previously hidden behind traditional barriers.

For clean energy developers, projects that once felt stuck on the sidelines suddenly gain direct access to capital streams that can accelerate development and growth.

For investors, Plural tokens represent real, SEC-compliant ownership in the renewable energy project and deliver newfound access to a secure, strong, and stable asset class.?

Breaking Down the Process and Investor Benefits

Now, what used to take days or weeks happens with a few clicks, systematically cutting costs across every stage of the investment lifecycle to everyone’s benefit. Here’s how, from start to finish.

Finding and Evaluating Deals

• Before tokenization, discovering and assessing a renewable energy project often meant sifting through scattered information and repeating the same due diligence checks over and over.?
• With tokenization, key data is stored securely on the blockchain, and documents are easily accessible and standardized.?

The investor takeaway: tokenization makes review opportunities quicker and cheaper for investors, boosting transparency and trust.

Closing the Deal

• Before tokenization, traditional deal closings involved multiple legal reviews, manual updates to spreadsheets tracking ownership (cap tables), and slow payment methods. Each new investor added another layer of hassle.?
• With tokenization,? much of this is automated via smart contracts, instantly updating ownership records and speeding up transactions.?

The investor takeaway: deals close faster, with fewer headaches and lower costs.

Manageability and Automation

• Before tokenization, managing a group of investors over the life of a project could be a nightmare, with every dividend payment or vote requiring manual work.?
• With tokenization,? these tasks become largely automated. Smart contracts handle distributions, investor communications happen through digital platforms, and governance votes can be recorded on the blockchain.

The investor takeaway: ?This streamlined approach frees project sponsors to focus on actually running and improving the project

Thanks to tokenization, both developers’ and investors’? time and energy can shift from bureaucratic drudgery to what really matters: building and operating profitable clean-energy infrastructure.

Opening the Door to More Investors and More Projects

With lower costs, faster deals, smoother capital flows, and more investors involved, Plural’s tokenization process turns even modest projects into attractive opportunities. It also paves the way for a genuine secondary market where investors can easily sell their stakes if they need an exit, building confidence and encouraging more people to get involved.?

Big picture, through Plural, renewable energy projects can get off the ground sooner and start delivering both financial returns and environmental benefits.

Looking Ahead

The paradigm shift we’re driving promises a more inclusive and active renewable energy market: one where smaller projects no longer go unfunded and a broader range of investors can support the clean energy transition.

And we’re just getting started. As our platform evolves and our deals progress, we anticipate a fundamental transformation in the renewable energy investing landscape—and ultimately, worldwide energy production—powered by tokenization.?