MyBit is launching into solar power later this year. The company will use crowdfunding to support solar projects that people can invest in at low levels and receive revenue from.
MyBit envisions supporting a wide range of revenue generating technologies. That could include anything from 3D printing to cryptocurrency ATMs, self-driving cars and more.
In a white paper the company explains how it would work using Alice as an analog. “Alice wants solar panels that cost $20k and only has $5k to allocate towards them,” the white paper explained. It observed that normally she would have to seek a loan from a bank or a similar institution through which the institution would own the solar panels.
But, “Since solar panels generate revenue, there is no need for debt-instruments since investors can profit from this opportunity without Alice having to owe any third-party (financially). Instead, Alice can crowdfund the remaining 75 percent (or $15,000) from investors all over the world,” through MyBit’s platform, it said.
Like many kickstarter-type campaigns she would have on-average 30 days to raise the balance from investors, otherwise all funds would be returned via the smart contract to investors. “If the funding goal is reached then the raised capital is automatically sent to the hardware installer/manufacturer which eliminates the risk of Alice misusing the funds,” MyBit explained. “Once installed, the Solar panels are connected to the MyBit platform via an oracle that pulls usage and payment data from the hardware so everything is transparent and can easily be tracked and audited by investors and third-parties. When the solar panels generate revenue (in this case feed-in tariffs or selling back to the grid) investors receive a portion of the profits proportionate to their ownership stake.”
The company said the system inverts the financing model that allows more people to invest and reap rewards of investing instead of relying on investments from large, centralized institutions and increasing only their revenue flow. Instead it allows more people to receive returns on investment whose investments are bolstered further by leveraging technological efficiencies.
The company said it is starting with solar panel systems because the current energy generation structure is not sustainable for the future. It asserted that the future will require decentralized energy structures like microgrids, commercial rooftop solar installations and home solar. That’s where MyBit anticipates it can make an impact in solar investments.Tweet