South African blockchain startup, , in partnership with the Sun Exchange, is offering a blockchain-powered solution aimed at allowing individuals to invest in solar power and subsequently sell it to institutions.
You can now purchase solar cells through SunCash for as little as R85, and sell the solar energy back to South African businesses and institutions through a Standard Power Purchase Agreement.
Check out https://t.co/Mv8MM2660w to find out more#SouthAfrica#EnergyTransitionpic.twitter.com/MusyrfXOj5
— Momint | Pioneering Web3 In The Real World ?? ? (@MomintNFT) February 15, 2023
According to Momint, individuals residing in the South African provinces of Limpopo, Western Cape, and Mpumalanga can buy solar cells which are a fundamental component of solar panels for as little as R150 ($8.33) through an intiative dubbed Sun Cash.
The purchased solar cells are subsequently installed by reliable solar panel partners at an institution of the buyer’s choosing. The buyer may select from a range of establishments such as schools, businesses, hospitals, or factories that require solar power.
Investors are able to lease the solar cells they purchased through SunCash to the selected institution by utilizing a standard power purchase agreement which allows for the purchase of solar power. Individuals who invest in solar cells through SunCash are expected to receive a yearly return of approximately 12%. This return is paid out quarterly in South African Rand by SunCash.
The initiative operates on a crowdfunding framework that enables several investors to finance a single project while simultaneously raising funds for the institution’s solar project. The method utilizes blockchain technology to heighten transparency and reduce transaction costs.
“We take legal contracts that represent ownership of each individual cell, and we put those legal contracts into a file that’s typically referred to as ‘the token’ on the blockchain. It’s called a smart contract. That smart contract says, ‘whoever owns this token has the right to the underlying asset’ and they have the right to the revenues that the underlying asset generates,” says Momint CEO, Ahren Posthumus.
The solution is a variation of SunExchange’s blockchain-based peer-to-peer renewable energy which we covered in early 2022
“The idea is to simply cut Eskom out of the equation. The portal aims to provide South Africans with the opportunity to sell renewable energy to each other, while earning a passive income from it.”
The flagship location for the installation of a solar photovoltaic system is Delmas High School in Mpumalanga. According to Posthumus, the solar cells for this project are almost completely sold out and the installation process at the school is already underway.
The high school is said to have committed to leasing energy for 20 years and expected to pay slightly lower rates compared to those offered by public ultilities such as Eskom.
The project is being replicated at various other sites in the identified provinces but Momint is also seeking partnerships to scale it nationally.
____________________________________
