Peer2Panel — The future of investment in renewable energy
Combining Defi with tokenized photovoltaic panels
With an expected investment cost of ∼$100 trillion within the next decades, renewable energy is at the heart of the United Nation’s transition to net-zero emissions by 2050. Yet, investment in this sector comes with many challenges and is currently mostly limited to corporates and wealthy individuals. The transition could benefit greatly if investment in renewable energy was made more attractive to a wider range of retail investors, bringing in more cash in the process.
In this article, we introduce Peer2Panel, an independent third party institution certifying and tokenizing photovoltaic panels into an Ethereum compatible digital asset. That way, we combine the competitive returns from the traditional renewable energy market with the most recent innovations from the decentralized finance (Defi), such as instant liquidity and collateralized loans.
What problem Peer2Panel is trying to solve?
In the context of rising inflation, the consistent increase of electricity price, and the difficulty of finding investments with good risk reward ratio, assets linked to solar energy may provide an attractive alternative form of investments. Nevertheless, an individual willing to grow his portfolio with assets in renewable energy will face several constraints in the current market condition:
- Operational costs. Specific expertise is required for the installation, maintenance and operation of photovotaic panels.
- Low exit liquidity. It is difficult to sell or transport solar panels once installed.
- High entry cost. Solar installations typically requires a roof with the right orientation and an intial investment of at least 10k USD.
- Going through agencies. Alternatively, individuals may invest through a solar agencies. But this comes with the hassles of a lack of transparancy, potential inneficiencies and the risk of missmanagement.
What is Peer2Panel ?
With Peer2Panel, we address these issues by tokenizing solar panels into unique NFTs on the Ethereum blockchain, and redistributing the profits from the generated energy to the token holders. In other word, we act as an intermediary between a token-owning individual and a physical solar panel.
Our objective is to guarantee that owners of the tokenized panels benefit at least from the same return on investment as in the traditional market, while at the same time enjoying the high liquidity and transparency of the Defi applications of the Ethereum blockchain. In fact, it is our responsibility to
- Ensure the quality and authenticity of the solar panels we tokenize (SolarT tokens).
- Redistribute the energy revenue fairly and consistently to the solar panel holders (paid daily in USDC).
- Offer solar token owners the existing Defi possibilities of the Ethereum blockchain.
Peer2Panel and Defi
Decentralized finance (Defi), have revolutionized the way we trade, invest and transfer assets. At the center of this revolution is the Ethereum blockchain, which through its smart contracts unlocked many possibilities in the finance, art and gaming industry. Peer2Panel leverages on the Ethereum blockchain to propose a decentralized marketplace where users can easily buy, sell and exchange their solar tokens. We also provide a service of collateralized loans, where users can stake their solar panel tokens in order to get temporary liquidity in exchange of a borrowing fee.
If you would like to learn more about our Defi applications, the buisness model, and the tokenomics of Peer2Panel, feel free to check out our website and whitepaper.
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