5 ms·

The math here is pretty straightforward, however, it doesn't look like all of the components necessary to do the math are available. 1. How long do I "own a so

The math here is pretty straightforward, however, it doesn't look like all of the components necessary to do the math are available. 1. How long do I "own a solar panel"? Indefinitely? 2. What is the wattage of the solar panel and where is it located? i.e. what wattage will it produce consistently YoY? What power market? 3. What percentage fees does Legends take? Frankly, #1 is the most important factor here by a long shot.

maerF0x0 4y ago
gonna pile on here so it's easy for OP to answer. 4. What contracts are in place to maintain the panel, and lease the space? What happens if the building decides to discontinue service. Will the solar panel be delivered to me (at what fee?) will the solar panel be re-placed on top of another building? (at what fee?) 5. are the devices insured against common forms of damage? (wind, hail, acts of humankind) 6. Can we implement at "DRIP" style reinvestment program where our ROI just funnels back into more?
- dpifke 4y ago
  7. Can I re-sell my "panels" (shares in the facility) at a later date if I want out?
  - yepnopemaybe 4y ago
    We hope to eventually operate a secondary market where you could do this. Depends on a few regulatory factors we are still considering. Definitely a priority.
    - dpifke 4y ago
      I'm curious the legal structure of what you're selling here. The terms and conditions on your website[0] seem generic, and don't describe the offering. You're promoting something you call "shares"[1], which promise to pay a dividend. Regardless of whether or not they can be resold, I assume your counsel has figured out a way that these aren't considered "marketable securities" within the meaning of the Securities Act of 1933, which would trigger all sorts of SEC scrutiny. I assume you're familiar with the early business model of Prosper Marketplace and their struggles[2] with the SEC over a similar issue. Does this fall under the Regulation Crowdfunding exception[3] or is there another loophole? (This is not meant as criticism; I'm genuinely curious. I'm not an expert, and the legal landscape has quite possibly changed since I last researched this issue.) [0] https://www.legends.solar/legal/terms-and-conditions https://www.legends.solar/legal/terms-and-conditions [1] https://www.legends.solar/learn/actual-ownership https://www.legends.solar/learn/actual-ownership [2] https://www.sec.gov/litigation/admin/2008/33-8984.pdf https://www.sec.gov/litigation/admin/2008/33-8984.pdf (PDF) [3] https://www.sec.gov/education/smallbusiness/exemptofferings/regcrowdfunding https://www.sec.gov/education/smallbusiness/exemptofferings/...
      - yepnopemaybe 4y ago
        We are still structuring our first product - so it will depend, but we have options for all of these questions. From the securities side, we might consider Reg A+ or other crowdfunding regulation. I'd look into the structure Masterworks.io uses to learn more (I've in fact discussed this with their GC). We've been building our beta with accredited investors under Reg D.
        dpifke 4y ago
        Interesting, thanks for the answer. For others (like me) that haven't heard of Masterworks: Masterworks creates a Delaware LLC issuer (taxed as a partnership) and files an offering of ordinary shares with the United States SEC under Regulation A. Each issuer will use proceeds from the offering to acquire a single work of art and title to the artwork will be contributed to a Cayman Islands segregated portfolio company for the benefit of the issuer. The issuer will have no indebtedness, no other assets and will conduct no operations other than relating to the ownership, maintenance and eventual sale of the artwork. The issuer is administered by Masterworks pursuant to an administrative services agreement that provides that Masterworks pays all ordinary and necessary fees, costs and expenses in exchange for membership interests in the issuer. (from the FAQ at https://www.masterworks.io/ https://www.masterworks.io/) The Regulation A amendments from the JOBS Act ("Regulation A+", circa 2015) are indeed more recent than my last look at this, so I can't comment further. The Cayman Islands domicile rubs me the wrong way, but that may be out of ignorance.
  - wang_li 4y ago
    8. If I decide to can I come get my solar panel and take it to my cabin?
    - yepnopemaybe 4y ago
      Great question! We've often contemplated the Vinovest.io model. Vinovest sells fine wine as an investment. Because you own the individual bottles and are entitled, for a fee, to have them sent to your door, they avoid most securities headaches. I wonder if we could do that for individual panels, particularly given deployment of module level Enphase micro inverters.
    - Ekaros 4y ago
      9. Can I halt the production of my panels in case I want to manipulate the market?
- yepnopemaybe 4y ago
  These are all great questions - so far we've worked with accredited investors to place $100K+ solar facilities while we've built our product. They are basically beta testers while de get out design, software, payments integrations, etc going. We answered those questions for accredited, for everyday retail investors it will depend on the solar facility we select and the financial structuring design.
  - adenner 4y ago
    Great questions, lacking in answers... would you care to share what you expect the answers to be? It is hard to get on board with the number of unanswered questions.
  - kingcharles 4y ago
    Tell me you don't want to answer the questions without telling me you don't want to answer the questions...
    - yepnopemaybe 4y ago
      Happy to answer any questions. The fact is that financial return will depend on the risk profile - which we will depend on factors like a) Will the investor take on construction risk b) Will the facility be insured c) Who is the power customer (off taker) how creditworthy are they, and what are the terms? d) Will the financing include tax equity incentives and how will they be distributed. These questions are all a matter of design and pragmatism. I want the financial design to be as considered as, and will integrated to, the user experience design.
      - seunosewa 4y ago
        Looks like you're not yet ready for retail investors?
  - guerrilla 4y ago
    I really wanted to take you seriously but that's impossible if you won't answer any fo these simple questions. This is a real bad look that does not inspire confidence.
vorpalhex 4y ago
(2) is critically important as well. A panel is going to do differently in Texas than Maine.
- yepnopemaybe 4y ago
  Both Texas and Maine would be unlikely candidates. Maine has some pretty stringent and arbitrary rules about behind-the-meter commercial power arrangements. Texas is possible with commercial facilities, but their regulatory framework is also deterrent, really to any kind of development. To be honest, in all odds the financial return is more likely to be dependent on factors like who the off-taker is, if the financing includes construction risk, if we are insuring the facility, etc than its physical location.

maerF0x0 4y ago

gonna pile on here so it's easy for OP to answer. 4. What contracts are in place to maintain the panel, and lease the space? What happens if the building decides to discontinue service. Will the solar panel be delivered to me (at what fee?) will the solar panel be re-placed on top of another building? (at what fee?) 5. are the devices insured against common forms of damage? (wind, hail, acts of humankind) 6. Can we implement at "DRIP" style reinvestment program where our ROI just funnels back into more?

dpifke 4y ago
7. Can I re-sell my "panels" (shares in the facility) at a later date if I want out?
- yepnopemaybe 4y ago
  We hope to eventually operate a secondary market where you could do this. Depends on a few regulatory factors we are still considering. Definitely a priority.
  - dpifke 4y ago
    I'm curious the legal structure of what you're selling here. The terms and conditions on your website[0] seem generic, and don't describe the offering. You're promoting something you call "shares"[1], which promise to pay a dividend. Regardless of whether or not they can be resold, I assume your counsel has figured out a way that these aren't considered "marketable securities" within the meaning of the Securities Act of 1933, which would trigger all sorts of SEC scrutiny. I assume you're familiar with the early business model of Prosper Marketplace and their struggles[2] with the SEC over a similar issue. Does this fall under the Regulation Crowdfunding exception[3] or is there another loophole? (This is not meant as criticism; I'm genuinely curious. I'm not an expert, and the legal landscape has quite possibly changed since I last researched this issue.) [0] https://www.legends.solar/legal/terms-and-conditions https://www.legends.solar/legal/terms-and-conditions [1] https://www.legends.solar/learn/actual-ownership https://www.legends.solar/learn/actual-ownership [2] https://www.sec.gov/litigation/admin/2008/33-8984.pdf https://www.sec.gov/litigation/admin/2008/33-8984.pdf (PDF) [3] https://www.sec.gov/education/smallbusiness/exemptofferings/regcrowdfunding https://www.sec.gov/education/smallbusiness/exemptofferings/...
    - yepnopemaybe 4y ago
      We are still structuring our first product - so it will depend, but we have options for all of these questions. From the securities side, we might consider Reg A+ or other crowdfunding regulation. I'd look into the structure Masterworks.io uses to learn more (I've in fact discussed this with their GC). We've been building our beta with accredited investors under Reg D.
      - dpifke 4y ago
        Interesting, thanks for the answer. For others (like me) that haven't heard of Masterworks: Masterworks creates a Delaware LLC issuer (taxed as a partnership) and files an offering of ordinary shares with the United States SEC under Regulation A. Each issuer will use proceeds from the offering to acquire a single work of art and title to the artwork will be contributed to a Cayman Islands segregated portfolio company for the benefit of the issuer. The issuer will have no indebtedness, no other assets and will conduct no operations other than relating to the ownership, maintenance and eventual sale of the artwork. The issuer is administered by Masterworks pursuant to an administrative services agreement that provides that Masterworks pays all ordinary and necessary fees, costs and expenses in exchange for membership interests in the issuer. (from the FAQ at https://www.masterworks.io/ https://www.masterworks.io/) The Regulation A amendments from the JOBS Act ("Regulation A+", circa 2015) are indeed more recent than my last look at this, so I can't comment further. The Cayman Islands domicile rubs me the wrong way, but that may be out of ignorance.
- wang_li 4y ago
  8. If I decide to can I come get my solar panel and take it to my cabin?
  - yepnopemaybe 4y ago
    Great question! We've often contemplated the Vinovest.io model. Vinovest sells fine wine as an investment. Because you own the individual bottles and are entitled, for a fee, to have them sent to your door, they avoid most securities headaches. I wonder if we could do that for individual panels, particularly given deployment of module level Enphase micro inverters.
  - Ekaros 4y ago
    9. Can I halt the production of my panels in case I want to manipulate the market?
yepnopemaybe 4y ago
These are all great questions - so far we've worked with accredited investors to place $100K+ solar facilities while we've built our product. They are basically beta testers while de get out design, software, payments integrations, etc going. We answered those questions for accredited, for everyday retail investors it will depend on the solar facility we select and the financial structuring design.
- adenner 4y ago
  Great questions, lacking in answers... would you care to share what you expect the answers to be? It is hard to get on board with the number of unanswered questions.
- kingcharles 4y ago
  Tell me you don't want to answer the questions without telling me you don't want to answer the questions...
  - yepnopemaybe 4y ago
    Happy to answer any questions. The fact is that financial return will depend on the risk profile - which we will depend on factors like a) Will the investor take on construction risk b) Will the facility be insured c) Who is the power customer (off taker) how creditworthy are they, and what are the terms? d) Will the financing include tax equity incentives and how will they be distributed. These questions are all a matter of design and pragmatism. I want the financial design to be as considered as, and will integrated to, the user experience design.
    - seunosewa 4y ago
      Looks like you're not yet ready for retail investors?
- guerrilla 4y ago
  I really wanted to take you seriously but that's impossible if you won't answer any fo these simple questions. This is a real bad look that does not inspire confidence.

vorpalhex 4y ago

(2) is critically important as well. A panel is going to do differently in Texas than Maine.

yepnopemaybe 4y ago
Both Texas and Maine would be unlikely candidates. Maine has some pretty stringent and arbitrary rules about behind-the-meter commercial power arrangements. Texas is possible with commercial facilities, but their regulatory framework is also deterrent, really to any kind of development. To be honest, in all odds the financial return is more likely to be dependent on factors like who the off-taker is, if the financing includes construction risk, if we are insuring the facility, etc than its physical location.