What is Energy Shift?
Energy Shift is a marketplace that enables its members to purchase and then lease solar panels to schools, businesses and communities in the sunniest locations on Earth.
Energy Shift hosts solar project crowd sales, each with thousands of optimally-located solar panels available for approximately $100 unit price.
Solar panels purchased through Energy Shift are leased to hospitals, factories, schools and other end-users under 20-year contracts, with pricing that tracks changes in local energy prices and inflation. Energy consumers at the solar projects benefit from affordable electricity for no upfront cost, and pay for the solar electricity consumed to replace power from grid connections, diesel generators, and other dirty energy sources.
Energy Shift evaluates each proposed solar PV project prior to its sale, but only arranges construction after all the solar panels have been sold.
How do I get my solar panels to generate revenue?
Solar panel produces electricity when exposed to sunlight. Your solar panels are leased to the electricity consumer, for which they pay you per kWh consumed. This is secured through a Lease Agreement and arranged by Energy Shift. By default, you are opted into leasing your solar panels to the electricity consumer.
Why would I buy solar panels through Energy Shift?
You might do so for any of these reasons:
Energy Shift enables you to own solar cells that are located on roofs in the most ideal places imaginable at a very affordable price per panel. And you are helping accelerate the energy transition with solar energy!
What is IRR and how is it calculated?
IRR stands for internal rate of return and is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. IRR is used to evaluate the attractiveness of a project or investment.
For a more detailed definition of IRR and how it is calculated please check out this Investopedia article
How does Energy Shift show transparency to its investors?
Every project is public and available on our web platform with the relevant data.
Each additional question you may have may be directed to us via email, to which we shall happily respond as quickly as possible.
How are investment returns ensured?
We only enable investments with minimum risk for our investors, thusly we only do projects that are contractually obligated to buy the produced electricity, definitely resulting in revenue. Furthermore, the power plants are insured with insurance companies, in case of, e.g., an unplanned natural disaster.
When does the interest timer start?
On the day of the power plant comissioning.
Why is group financing interesting and getting more popular each day?
Group financing combines the financial part of a project with its marketing part. It is usually accompanied with simplified administrative processes, as it is often combined with web technologies and finance-based innovations. Group financing successfully fills the gaps where classic financing methods fail due to administrative or other difficulties, and it can be of special importance for projects with positive societal or environmental effects.
The presentation of projects with group financing platforms serves as an excellent tool for direct interaction with users and acquiring valuable feedback. Once the public accepts the project, it may acquire a viral character as people who support it tend to share it with their friends and acquaintances, especially via social networks.
Project validation from the side of users is essential, as without said users even the most promising business plans fail. Because of this, we appreciate every bit of feedback you're willing to give.
What kinds of group financing are there?
There are several kinds.
a) Group financing based on ownership shares; with this type of financing, in return for their investments, the investors receive an ownership share which may or may not imply voting rights. It all depends on the legal structure of the investing platform, which may be in the form of a share in the company, SPV, collective, etc. This kind of group financing is called "crowd investing".
b) Group investing based on loans; this type of investing is based on micro-loans between two parties on the platform. The loans may or may not include an interest rate, and this model can sometimes overlap with the above explained group financing based on ownership shares - depending on the business model by which the group investing platform works.
c) Group investing based on rewards; investors do not receive a financial return on their investments. Instead, they acquire certain perks which the project initiator decides upon, and uses in order to attract investors. The rewards can take many forms, but are generally either goods, services or acknowledgements.
d) Group investing based on donations; the case in which a large number of people donate money with no compensation. A merit of group investing as opposed to group donating is the transparency of spending, and the ability to address specific issues or individual situations of individuals requiring help.
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