The renewable energy sector is seeing tremendous growth in 2025, with falling costs and heightened demand driven by technological advancements and the expanding manufacturing and AI industries. Yet, this growth brings a wave of more complex portfolios and increased administrative demands.
For renewable energy project financiers, the methods used to manage these portfolios must evolve to align with the industry’s rapid expansion. Surprisingly, despite its limitations, many professionals continue to rely heavily on Excel for portfolio management. Why does this outdated practice persist, and what challenges does it create for the renewable energy sector?
The Continued Reliance on Excel in Portfolio Management
For decades, Excel has been a staple in the financial world. It has held a central role in financial modeling, data analysis, and portfolio management. While newer tools are available, Excel remains a popular choice for professionals due to its familiarity and accessibility.
Excel became a fixture in finance because of its adaptability. It was one of the first tools to digitize manual calculations, allowing users to create customizable models and store large amounts of data. Over time, finance professionals mastered its features, embedding it deeply into organizational workflows and data management strategies. Even as technology advanced, many financial teams stuck with what they knew, maintaining their reliance on spreadsheets.
There’s no denying the practical reasons behind Excel’s popularity. Its affordability and wide availability make it accessible to companies of all sizes. It’s also flexible, allowing users to create custom formulas and tailor models to specific needs. Professionals are comfortable with it, and many have built years of expertise working within its gridlines.
Adopting new systems requires time and effort. For busy financial teams, the idea of learning new software, training staff, and incurring additional costs can seem daunting. Many worry that the transition process will disrupt daily operations or introduce inefficiencies while employees adjust to new tools.
Challenges of Managing Renewable Energy Portfolios in Excel
“While Excel offers familiarity, its limitations become apparent when managing portfolios, particularly those in the renewable energy space,” says an executive from Banyan Infrastructure, a company that combines financial and technological innovation. “The sector’s unique challenges—ranging from regulatory compliance to large-scale data coordination—highlight the core challenge of relying solely on spreadsheets.”
Managing renewable energy projects in Excel is time-consuming. Professionals spend countless hours aggregating data from multiple sources, updating formulas, and preparing compliance reports. According to a recent industry report, nearly one-third of project finance professionals spend over five hours per week on compliance management alone. Excel’s reliance on manual input further compounds inefficiencies, creating significant administrative labor.
One of Excel’s major flaws is its lack of collaborative functionality. In many cases, a single individual becomes the gatekeeper of key spreadsheets, creating risks for organizations. Should that employee leave the company, experience a device failure, or misplace a file, critical portfolio information could be lost or delayed.
Modern renewable energy portfolios require the coordination of vast data points, including performance metrics, market data, and regulatory information. Excel struggles to handle this complexity. It cannot seamlessly integrate multiple data streams, leaving managers to juggle disconnected files, tabs, and silos. This lack of integration reduces efficiency and makes it difficult to generate holistic insights.
Human errors in manual data entry are an ever-present concern when relying on Excel. A small typo or overlooked formula can lead to significant financial consequences, from missed compliance deadlines to inaccurate reporting. As renewable energy financing grows more intricate, the risks associated with these errors amplify, putting projects and reputations at stake.
Why the Renewable Energy Sector Demands Modern Solutions
The rapid growth of renewable energy investments has introduced complexities that Excel is ill-equipped to handle. Meeting the demands of this evolving industry requires tools that surpass the capabilities of spreadsheets.
The renewable energy sector is experiencing unprecedented growth. Falling costs of production and the increasing adoption of innovative technologies have made renewables a focal point for investors. Managing these ambitious portfolios demands a system that can scale alongside the industry, offering real-time insights and streamlined processes that Excel cannot provide.
Regulatory requirements in renewable energy financing have grown stricter. With more investors entering the space, compliance and transparent reporting have become essential. Excel’s lack of automated compliance features means professionals must manually handle these responsibilities, consuming valuable time and leaving room for error.
Renewable energy financing often requires collaboration between internal teams and external stakeholders, such as developers, investors, and regulators. Excel struggles to support effective data sharing and communication. Without real-time updates and centralized reporting, teams risk delays and miscommunication, hindering decision-making processes.
Modern Digital Tools as the Future of Portfolio Management
To address the challenges posed by Excel, many portfolio managers are moving toward purpose-built digital tools. These solutions are designed with the complexities of modern finance in mind, providing capabilities that spreadsheets simply cannot match.
Digital platforms for portfolio management come equipped with features like automation, real-time data sharing, and compliance-ready reporting tools. They consolidate data from various sources into a single interface, making it easier to monitor performance and generate updates. Additionally, they include robust security measures to protect sensitive financial information.
Automation is one of the most significant advantages of modern software. By reducing the need for manual data entry and repetitive tasks, digital tools can eliminate common errors and improve data accuracy. Features like version control and cloud backups also minimize reliance on individual team members, ensuring that critical information is always accessible.
Organizations that have transitioned from Excel to specialized portfolio management software have reported significant gains in efficiency and accuracy. For example, a renewable energy investment team using Banyan Infrastructure’s software saw a dramatic reduction in time spent on data aggregation and reporting. They also experienced improved collaboration across departments, allowing them to focus on strategic initiatives instead of administrative tasks.
Overcoming Resistance to Digital Transformation in Finance
Many finance teams hesitate to use new tools, often due to cost or unfamiliarity. However, upfront costs are an investment in future efficiency, reducing errors, and boosting productivity over time. Focusing only on immediate costs can hold teams back.
Resistance often stems from not knowing the tools. Training and support make adoption smoother, helping teams feel confident. Leaders need to encourage openness and show how modern tools meet industry demands.
Excel isn’t enough for managing renewable energy portfolios in 2025. The industry needs tools that improve collaboration, minimize errors, and offer real-time reporting and insights. Moving beyond outdated methods is key to staying competitive.
With better tools, teams can save time, improve accuracy, and drive sustainable energy growth. Now’s the time to make the switch.
