Green Equity Financing Model for Malaysian Solar Farming in Supporting Responsible Investment: A Conceptual Study

This paper proposes a conceptual financing framework that leverages equity crowdfunding while embedding Environmental, Social, and Governance (ESG) principles to ensure long-term sustainability and investor confidence. This approach addresses a critical gap in sustainable finance mechanisms within Malaysia's solar farming sector. Despite increasing global attention toward renewable energy initiatives, an imbalance in traditional financing has created significant challenges, particularly for smaller developers and local entrepreneurs. The difficulty in securing sufficient and responsible funding largely due to regulatory uncertainty, high risk perception, and limited investment channels effectively creates a barrier for innovative but small players in the industry. By embedding ESG criteria into crowdfunding platforms, the proposed framework aims to address these financial asymmetries and create inclusive, accountable, and scalable financing solutions. This conceptual study is grounded in a systematic review of existing literature on solar farm business models, ESG integration in finance, and the evolving crowdfunding landscape. The framework is positioned to fill a critical gap in Malaysia's sustainable finance ecosystem, offering policy insights and strategic directions to support the emergence of a resilient, socially responsible renewable energy sector.