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> The recruiting individuals thing is basically an admission that this team does not have access to that kind of backing. I would assume they plan to finance t
by PragmaticPulp 4y ago
> The recruiting individuals thing is basically an admission that this team does not have access to that kind of backing.
I would assume they plan to finance the large installations and then pay off the financing by re-selling the projects to retail investors in increments mapping to approximately 1 panel.
In theory they'd only need to keep enough working capital to fund installations until PTO (power turn on) at which point they could "sell" them to retail investors and turn over the capital for the next install.
In practice I'd be worried about what happens if (or when) the company goes out of business. Does my initial investment disappear and someone else now owns the solar installation?
This feels like an offer to become an investor in a risky solar install without any of the actual rights that come from being an investor in a solar install. If the company fails for whatever reason, your solar install goes to the company's investors and you get nothing.
A much better structure would be to operate as a solar holding and operations company and allow people to invest in the company (eventually publicly traded). This lets the investors keep actual ownership of the company and panels, not just some notional ownership on their platform that disappears the moment anything changes.
The way it's proposed here, they're breaking the traditional investment ownership chain and replacing it with some IOUs on the platform. What you really want is to own shares of the company that owns the solar installs, otherwise you get nothing and have no claim as a creditor when the business stops working.
- akelly 4y agoI don't want shares of a speculative solar startup, I want a safe solar investment with predictable returns. If a company goes bankrupt then shares go to zero, the assets are sold, and the proceeds split between everyone they owe money to. So structuring customer investments as a loan is safer for the investor, no?
- hef19898 4y agoThat is a nice way for operators / investors in utility scale solar to improve their cash position. The banks backing those utility scale projects, I assume, love the idea. On a general note, so, it seems people are coming up with lots of ideas to drop their investments on unassuming retail investors. Kind of makes sense, with potentially increasing interest rates, recovering their investments that might be affected by that sounds like a good idea.