Application To Solar Power Initiatives

Tokenization offers a number of additional benefits for solar project finance:
  • Faster capital raising: the greater efficiency of token-based funding means that it will be possible to raise funds for larger projects such as utility-scale solar plants with greater upfront capital requirements (e.g. licensing fees, component costs, land acquisition).
  • Store of value: tokens can be used to reflect cash inflows from existing projects (Power Purchase and Leasing agreements), in addition to being used as a means of assigning ownership of future cash flows.
  • Liquidity option for equity investors: investors who purchased equity using fiat currency can convert their (less liquid) equity for tokens, acquiring liquidity for themselves without having to remove liquidity from the system.