Solar Coin FAQ (taken from solarcoin.org)
What is SolarCoin
SolarCoin is an alternative digital currency that works like air-miles for Solar electricity generation. SolarCoin is claimed by individuals living in homes with solar panels on their roof or commercial solar electricity producers. Solar energy, unlike fossil fuels, does not place excess heat or carbon into the atmosphere. The goal is to provide an incentive to produce more solar electricity globally by rewarding the generators of solar electricity. SolarCoin is intended to shift the cost of electricity, thereby reducing the payback time of a solar Installation. In working closely with the solar industry, the SolarCoin Foundation, with SolarCoin, is at the base of a virtuous circle, creating an uptake for solar equipment and helping create jobs in the Renewable Energy sector. Each SolarCoin in circulation represents 1 Mwh of solar electricity generation.
Who created SolarCoin and how is it managed?
SolarCoin was created in 2014 by a group of volunteers interested in creating an incentive to benefit the environment. The idea for creating an energy backed currency is derived from an academic paper; DeKo: An Electricity-Backed Currency Proposal. SolarCoin is an open community project run by volunteers working together as the SolarCoin Foundation.
The SolarCoin Foundation manages the distribution of SolarCoins to Solar Electricity Generators using verified solar facilities as the “proof of work”. The SolarCoin Foundation maintains a public ledger detailing each SolarCoin given out to solar electricity generators.
The transactions are also publicly visible in the SolarCoin Blockchain. SolarCoin is now using POST algorithm (Proof of Stake Time) which enables users to stake their SolarCoin with an interest rate of 2%.
How are SolarCoins allocated and issued?
SolarCoins representing 97,500 TeraWatt hours of solar energy generation are held in reserve:
§33.7 Million SolarCoins (0.1%) have been mined using Proof of Work. All mined SolarCoins represent historically generated and unclaimed solar electricity.
§97.5 Billion SolarCoins (99.4%) are stored in the SolarCoin Foundation non-circulating generator pool account. These are exchanged for ongoing claimed “proof of work” of solar electricity generation. Each 1MWh of solar electricity generation is entitled to 1 SLR.
§500 Million SolarCoins (0.5%) in the genesis pool account represent environmental charities, early volunteers, advisers, builders and maintainers of SolarCoin infrastructure. Genesis pool circulation is restricted to never being more than 5% of total SolarCoin in circulation.
SolarCoin Issuance Process:
Claimant registers solar facility with Affiliate.
SolarCoin Foundation approves claim.
SolarCoin Foundation sends coins from reserve account to claimant (visible in the blockchain).
SolarCoin claimant spends / circulates coins using wallets etc.
Note: Most electric meters have online APIs and web reporting. These can be integrated with SolarCoin verification methods. Inverter manufacturers, meter companies and large systems integrators are invited to partner with The SolarCoin Foundation to integrate customer web based reading methodologies with the SolarCoin granting community.
Why Solar energy?
Generating megawatts with solar energy is good for the planet. Heat is an unavoidable by-product of the energy extracted from non-renewable energy sources. Renewable energy using direct or indirect solar energy are accounted for in the thermal balance of our planet, their use adds minimal heat to the environment. Solar energy is the largest renewable energy source available. Wind, Hydro, Geothermal and Biomass energy sources combined don't add up to the amount of Solar energy landing on Earth's surface every day (Source data). In addition, Wind, Hydro, Geothermal and Biomass electricity generally require industrial size implementations to be cost effective. Even small groups or individuals can use solar panels to earn SolarCoin. The cost to capture solar energy is decreasing rapidly as more solar energy systems are deployed. In the next decades, solar energy is increasingly going to play a key role in the electricity delivered to the grid.
How many SolarCoins can I expect to receive annually?
SolarCoin grants are made at the rate of 15% of Nameplate Capacity. The annual calculation is 365 days X 24 hrs X 15% X Your KW Nameplate Capacity/1000. This works out to 1.314 X your installed KW Nameplate Capacity. The initial SolarCoin grant is retroactive to the install date of your facility or Jan 1, 2010; whichever is more recent. Ongoing SLR grants are made every 6 months based on the facility install month. Various international groups recommend or accept this methodology as a proxy for solar electricity generation. (Note: A 10% Network Development fee will be charged on facilities greater than 20KW Nameplate Capacity to support infrastructure development and maintenance.)
For the SolarCoin.org FAQ click here