A Singapore-based solar energy company is developing a decentralized energy system that will allow homeowners who produce their own energy to sell it to their neighbours. The twist: it will be based on a blockchain.
Solar Bankers wants to revolutionize the concept of decentralized energy supply by building a system that allows homeowners who produce their own solar energy to sell it via a blockchain-based system to neighbouring households.
In this way, homeowners with solar panels could benefit from an additional source of income, while passive consumers within the network would benefit from more affordable electricity thanks to reduced transport costs.
Solar Bankers has now teamed up with the Chinese blockchain specialists ShellPay to make their concept a reality. Transactions between SunChain – the name given to the decentralized system – users will be managed by a system of smart contracts based on a blockchain platform.
The distribution of electricity will be regulated by smart meters, which will record the consumption of energy and run the SunChain network. Homeowners interested in generating their own energy will have to install Solar Bankers’ equipment to join the SunChain.
Solar Bankers will launch an Initial Coin Offering (ICO) in November to finance the project by selling what they call SunCoins, tokens that will be traded for payment in the SunChain.
Consumers will use the SunCoins to purchase electricity, while producers will receive SunCoins for selling their electricity to neighbours or filling batteries for electric cars.
Earlier this month, the company launched a pre-ICO to reward its early supporters by offering 15 million SunCoins – around 5 per cent of the total supply – at a sharply reduced price.
The first small-scale SunChain networks will be built in China, but the goal is to expand the network into developing countries and emerging economies where it could help circumvent the high costs associated with expanding the central electricity network.
Image credit: Solar Bankers