Three is a crowd? Exploring the potential of crowdfunding for renewable energy in the Netherlands

• The volume of crowdfunding for renewable energy projects is low, but its dynamic holds potential.
• There is limited indication of stabilisation of learning across crowdfunding platforms.
• There is limited support of crowdfunding for renewables from powerful actors.
• Crowdfunders exhibit a variety of normative, gain and even hedonic motivations.
• Governmental market support and regulations are shaping crowdfunding as a business model.

There is a huge gap between demand and supply of finance for energy transitions, and the financial and economic crisis have had a negative impact in the already meagre funds for transforming the energy system towards renewable sources. In this paper we explore whether crowdfunding for renewable energy, as a novel sociotechnical practice developed in a niche, has the potential to break through and transform both the energy and the financial regimes, utilising the Multi-Level Perspective theory. We empirically investigate crowdfunding platforms linked to renewable electricity projects in the Netherlands. The main conclusion is that the volume of crowdfunding today is low, but the dynamic of these projects holds potential. There is limited indication of learning processes until now, as well as limited support from regime actors, pointing at a low level of niche stabilization and break-through potential, which may however be related to the early stage of development of crowdfunding in the Netherlands. On the other hand, the heterogeneity of crowdfunders is very promising. Platforms dedicated to renewable electricity exclusively, and with an investment based business model seem to be the most successful. We show how governmental market regulation and support mechanisms are shaping crowdfunding as a business model, and discuss the implications for other countries.