Post by failedtheturingtest on Jul 15, 2022 9:06:03 GMT
Is anyone else here an investor in, or interested in, SunExchange (https://thesunexchange.com)? They are a South African crowdfunding platform that invests in solar power projects. They develop a project, raise funds worldwide, work with local installers to set it up, lease the solar panels to the customers, collect revenue based on electricity generated, and pass on the revenue to investors. Revenues are inflation-linked and most projects are projected to have an IRR around 10% or 11%. Their customers include a lot of retirement homes and schools, a small number of farms and wineries, and a few other types of businesses.
A major limitation is that investments are locked in for 20 years, with no secondary market currently although they might develop one eventually. Another oddity is that they remit revenues to overseas investors in bitcoin (you can receive South African rand if you have a South African bank account), which introduces an extra hurdle to receiving your income in a form you can spend. There's a bit of cash drag in that projects take a few months between the crowdfunding stage and when installation of the solar panels is completed and they start generating electricity and revenue.
I am an investor in some of their projects, I have no other connection with the company. I do think the concept is interesting and they seem to be executing well. I wonder if it might be a useful addition to some P2P portfolios... if the 20-year lock-in is not too much of a barrier!
A major limitation is that investments are locked in for 20 years, with no secondary market currently although they might develop one eventually. Another oddity is that they remit revenues to overseas investors in bitcoin (you can receive South African rand if you have a South African bank account), which introduces an extra hurdle to receiving your income in a form you can spend. There's a bit of cash drag in that projects take a few months between the crowdfunding stage and when installation of the solar panels is completed and they start generating electricity and revenue.
I am an investor in some of their projects, I have no other connection with the company. I do think the concept is interesting and they seem to be executing well. I wonder if it might be a useful addition to some P2P portfolios... if the 20-year lock-in is not too much of a barrier!