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Sounds like a variation of a few companies in the UK/Europe where people jointly buy a wind mill and exploit it via some complicated constructions via their pow
by jillesvangurp 4y ago
Sounds like a variation of a few companies in the UK/Europe where people jointly buy a wind mill and exploit it via some complicated constructions via their power bill. Great if it works and there are probably all sorts of benefits via subsidies and what not.
The notion of tapping into unused space (commercial roof tops) is genius. Give companies enough of an incentive and they'll happily join. Especially since the capex is basically taken care off by others. The main challenges would be related to scaling operationally and sourcing the hardware.
Smart but in the end it's just a way of owning shares with limited rights in a company. The share sales are used for capex. The capex drives the dividends (through power sold). Presumably that's a better deal than what private home owners would get. And of course the majority share holder gets their cut as well on top of service fees and what not. So, win win.
Of course the question is what happens when things don't go so well (e.g. bankruptcy). In principle the same as with any other kind of investment probably. The devil is in the details. But this kind of cooperative model works very well in other sectors. E.g. milk producers commonly pool resources and some regional banks operate like cooperatives. So, it's not a strange idea.
And this could be a great solution for people that would like to get some clean power but maybe don't have a place suitable for solar panels. Otherwise, it's a normal investment with risks and rewards. On paper, the notion of buy panels and sell power seems like it should be a straightforward one. But of course the devil is in the details with the terms and conditions. The sales pitch is great though and I could see how this would work well.