Enerdeal 1A

Loan Belgium 72 investors
Smart Energy Today provides large companies with third-party-financed industrial size photovoltaic power plants for energy bill reduction and green energy wide development.
Loan
Investment type
10 years
Investment duration
€79,749
Amount raised
6.16%
Gross interest rate
0 days
Remaining (or less, see deal)
159% funded
This campaign has been closed

Market positioning

The Revenues of photovoltaic projects in the Walloon region are coming from different sources:

The green certificates

According to the Walloon government photovoltaic installations respecting a number of criteria receive a number of Green Current Certificates (gcc’s ) depending upon the size of the installation during a period of 10 years.
As from August 1st 2014, the subsidies will be as below:
For the first 250 kWp the installation is receiving 3 gcc’s per MWh produced if the panels used are manufactured in the EU.
Above 250 kWp the installation receives 1 gcc per MWh.
Given these conditions, the allocation of the gcc’s is automatic and the sales price will be guaranteed at 65 € by the CWAPE.
- Roof or land stability study
- Grid connection study ( by the local grid operator (ORES, Tecteo, …))
- Pre-approval of the project on the capacity list of the CWAPE.
- 60 % auto-consumption of the yearly production. This requires a detailed upfront calculation to make sure that the production and consumption data are respecting this requirement. Once the study proved the 60% auto-consumption ratio the allocation of the gcc’s will be automatic during 10 years. The PV system will thus have to be sized accordingly.

In addition, the following certifications will be realized at the end of the installation of the system:
- RGIE (Réglementtation Générale pour les Installations Electriques) certification of the electrical installation by AIB Vincotte or an equivalent certification company
- CGO (Certificat de Garantie d’Origine) certification by AIB Vincotte once the installation is connected to the grid.

Rental of the photovoltaic installation

The user of the electricity will be paying a yearly rent to PVFinvest. This rent is mostly expressed as an amount per kWp installed on the premises for which PVFinvest receives a 10 year right to build from the owner of the building.

Residual Value

At the end of the lease term, depending on the negotiated conditions, the beneficiary can acquire the installation and get it operate for about 15 more years

Market trends

In Brussels and Wallonia, there are thousands of industrial buildings with important energy consumption levels and more than 1000m2 of available roof area.
To date, less than 1% of them has been fitted with photovoltaic installations.
75% of these large scale opportunities belong to groups which can't afford investing in non productive assets either for corporate criteria or for financial limitations.
Third party financed opportunities, with their investment-free approach, have a success rate well above any direct investment opportunity.

Competition

There are 4 or 5 competitors on the Belgian market. Most of them are pure private equity companies who subcontract everything, from business develomment, to engineering, installation, monitoring and maintenance.
The differentiation which Smart Energy Today brings lies in its affiliation with Enerdeal, a leader in turnkey industrial size photovoltaic projects, in Flanders, Brussels, Wallonia and Luxembourg.

The crowdfunding financing model will definitely be an additional major advantage because it brings on one side a true and unique socio-ethical add-on to the investment and on the other, it strengthens the fundamentals and the credibility of the company, as the whole business model and the financial solidity has been addressed by the promoters.

The world leader in this solar crowdfunding business is definitely the US company called Mosaic (http://www.joinmosaic.com). Some others are starting up in France (http://www.lumo-france.com), in the UK (http://www.abundancegeneration.com) and in Germany (http://www.greencrowding.com)