The agreement gives Decentral’s Grovest Energy, an Income Tax Act Section 12J fund, first right of refusal to fund 51% to 100% of selected Sun Exchange offtaker projects, as well as to fund any balances after Sun Exchange solar cell crowd-sales are completed.
Decentral provided equity and debt financing for the 473 kW rooftop solar plant for plastics recycling company Nioro Plastics, in Cape Town. The project, which came on line in January, is the largest Sun Exchange project to date, Cambridge pointed out.
The fund manager also bought nearly 59% of the Nioro Plastics solar cells, which will yield an internal rate of return of 14.5% a year. Over 20 years, Nioro Plastics will produce 14.12 GWh of clean electricity, which is equivalent to over 10 000 t of coal burned.
“We invest in small-scale energy assets that demonstrate predictable, inflation-linked cash flows, because we believe that the energy future will be decentralised and built upon similar financing systems,” said Decentral fund manager Christian Bode.
“For that reason, we support Sun Exchange in its vision to create a thriving, inclusive and decentralised solar-powered economy. We are so confident about its business model that we have already bought into the Nioro Plastics project, and our goal is to fund 20 MW of Sun Exchange projects by 2020.”