From the start of 21st century, there has been rapidly increasing awareness of the environmental impact of people’s way of life and usage of resources. This impact arises from overconsumption, pollution, destruction of natural resources which result in emission of greenhouse gases, and permanent destruction that mankind cause to the planet. As the awareness of the serious and far-reaching consequences of climate change continues to grow, communities are looking for solutions to slow down, halt, and mitigate these effects. The renewable energy projects emerge as winning proposition against the current climate and environmental concerns which are the consequence of unsustainable economic activities. This study aims to exhibit great potential of Islamic finance in providing instruments for renewable energy projects. It explains and compares the financial structures used in both conventional finance and Islamic finance for green energy investments, resulting that Islamic finance has plenteous numbers of instruments for financing these projects. The research finds that Islamic finance, compared to its conventional counterpart offers better structures for renewable energy projects thanks to its asset based nature.