Paid in Crypto? How a South African Company Is Crowdfunding Solar Installations
South African power company Sun Exchange Incorporated is crowdfunding solar panel installation by paying in cryptocurrency. The idea is to sidestep the major upfront costs for the purchase and installation of solar equipment that its customers often cannot afford on their own. Investors are being paid in Bitcoin (BTC) once Sun Exchange makes its profit.
The Crowdfunding Process
By crowdfunding the initial costs, Sun Exchange is making solar power more accessible for a greater number of customers. The company is using cryptocurrency for the crowdfunding process, inviting investors to buy in on the project at a minimum of $4 USD.
Customers are still going to have to pay fees, but their massive initial costs are almost completely negated. Instead, they pay a small amount on a regular basis over 20 years as part of the contract they need to sign to be part of the program. They end up paying per month for their solar installation at a rate that is considerably lower than what they would pay for using electricity off the public grid.
Sun Exchange manages to make a profit through this program, and then they reimburse investors for their stake by paying them in their choice of South African Rand or Bitcoin. The advantage to using cryptocurrency like Bitcoin is that it crosses international borders easily. Investors from all around the world can be paid digitally in a currency that is becoming increasingly functional.
Some investors have said they’ve earned back 23% on top of their initial investment by buying into the solar program and being paid in Bitcoin. The operating model is working for not just the customers in making solar power accessible to them, but it also works for Sun Exchange in generating business and profit for them as well as for investors, who earn a profit as long as Sun Exchange earns a profit.
Powered by Investors and the Sun
Investors help to fund what Sun Exchange is doing, giving them money for installation, maintenance, and parts. They make their predetermined profit, and then all the rest of the profit goes to investors.
Solar power is an attractive energy alternative for South Africans who are dealing with severe power outages this year. That’s due to power problems experienced at the coal plants that power much of South Africa- coal plants that have long been in need of repairs and run by Eskom Holdings SOC Ltd.
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