Frequently Asked Questions
Frequently Asked Questions
Solarcollab Introduction
SolarCollab™ is a solar project development, investment and funding platform designed to raise capital for the acquisition of solar energy projects located in different countries around the world. Solarcollab.com is a digital investment ecosystem comprised of multiple financial technology platforms designed to lower the costs of developing, financing, operating and managing commercial, community, utility and battery storage solar energy projects. The SolarCollab ecosystem leverages blockchain technology through the digitization of targeted points along the solar energy asset value chain to create a more efficient
solar project development business model.
Craig is the owner of solarcollab.com.
https://www.linkedin.com/in/craigjdonnelly/
Solar Energy Basics
Solar Energy Investing
The initial cost to develop a community or utility scale solar energy project is quite expensive. However, once they are constructed they are not that expensive to operate and maintain for the next 25 years. One of the ways that we fund these solar projects is through crowdfunding. In general, the term crowdfunding refers to any online-based, collective investment by multiple people (i.e. the crowd) for a specific project. Solar project developers or owners present their projects on the Solarcollab crowdfunding investment platform in order to solicit financial support from the general public. As each solar project generates clean renewable electricity, the electricity is sold to the local utility or third-party commercial entities under a long term contract. The revenue from these revenue streams are used to initially pay for the operating and maintenance expenses of the solar energy system. The rest of the revenue is used to pay down for the project financing, debt, taxes and administration or the solar asset.
We are in the process of updating the answer to "How is my investment income paid to me?"... this section will be complete by February 14, 2021.
We are in the process of updating the answer to "How liquid is my initial investment?"... this section will be complete by February 14, 2021.
The internal rate of return is a metric used in financial analysis to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula as NPV does.
When you invest with Solarcollab, you are buying a piece of a solar energy power plant, similar to buying a piece of real estate. You have "equity" in the project and literally and legally own a portion of it. Investments in "real assets" such as this are inherently illiquid. The objective is to put long-term savings and investment capital "to work" by investing in a diversified portfolio of solar energy projects and collecting dividends over a long period. That said, if an investor desires to sell their stock in a portfolio during the operational life of an investment, Solarcollab will make commercially reasonable efforts to buy that stock from the investor according to the terms and conditioned set forth in the Reg A Offering Circular for each investment. Solarcollab is actively working on a secondary market option for the purchase and sale of these stocks by and between platform investors.
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.
Solarcollab Investment Platform
We are in the process of developing our the Solarcollab Investment Platform. We are in currently in a private beta mode where a small number of investors are participating in beta testing our platform. We expect to be open to the public 2nd quarter 2021.
You can open an investment account by registering from this webpage; https://solarcollab.com/invest/
We are in the process of updating the answer to "What is a Solarcollab investment advisor?"... this section will be complete by February 14, 2021.
The Solarcollab Digital Wallet (SDW) is under development. We expect the SDW to be available to the public 2nd quarter 2021.
We are in the process of updating the answer to "What is the fastest way to make an investment?"... this section will be complete by February 14, 2021.
every $1 invested in the solar energy portfolio. Each solar energy portfolio will be formed as a Special Purpose Vehicle (SPV) Limited Liability Corporation (LLC) that will be formed in the State of Delaware. As each solar energy project is constructed and begins to generate electricity, each kWh of electricity will be sold to a contracted buyer also called an "off-taker". Solarcollab will collect the revenue generated from the sale of the electricity to the off-taker, and will first use those funds to pay for the solar project's operating expenses, and then secondly the remaining revenues will be used to create a reserve fund that is paid to each investor based on the percentage of shares they have purchased of that particular solar energy portfolio.
A Solarcollab Solar Energy Portfolio (SEP) contains a mix of commercial, community, and/or utility scale solar energy projects. Each SEP will be formed as a Special Purpose Vehicle (SPV) Limited Liability Corporation (LLC) in the State
Financial Technology Advantages
US Securities and Exchange Commission
Risk and Due Diligence
As with all investments, buying a security involves risks. There is also a total risk of loss with securities and it is advisable to familiarize yourself thoroughly with the relevant risk information before considering a purchase.
Solarcollab strives to be as transparent as possible with all investors and there are no documents that are held from an investor's due diligence review. The investment document (either a RegD Circular or a RegA Circular depending on the portfolio) is an in-depth analysis of the risks and opportunities of each portfolio and should be read "cover to cover" by all investors. Once investors fully understand the terms and conditions of the investment itself, further due diligence should be done on the projects that comprise the portfolio. Each project is summarized in an IC Memo in the files of each portfolio. Every project also has a cash flow model for your review. Project videos are designed to help investors visualize what the projects look like, where they are and how they work.
Accordion Sample DescriptionTo review additional documents for projects (like the customer contract, the EPC contract or the operations and maintenance contract) please send an email to investments@solarcollab.com. You will be asked to sign a non-disclosure and non-compete agreement prior to having access to additional documents in order to protect Solarcollab 's and our customer's property and information rights. That said, there are no documents that are not available for all investors to review.
The SAIS is a brief piece of information, like the “package insert” for the investment offered. It informs the investor on a maximum of three A4 pages about the main characteristics of an investment offered.
Taxes
Solarcollab will email and post to your user profile all documents required to file your taxes prior to January 25th of each year.
The Schedule K-1 is an Internal Revenue Service (IRS) tax form issued annually for an investment in partnership interests. The purpose of the Schedule K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits. You will receive a Schedule K-1 for each portfolio in which you have equity.
Loans for Solar Energy Projects
Solar Power Plant Marketplace
Solar Project Development
Solarcollab presently focuses on developing ground-based solar power plants that range in size from 500 kW to 8 MW. Our sweet spot are projects that are between 2 - 4 MW.
We consider all sizes of ground based solar power parks. Our fast track DEPCOM focus is in the 2-4 MW range.
Currently we are heavily focused in solar farm development in the USA and select countries in The European Union. We have also just partnered with our affiliate, Solarcollab IREAP Pvt. Ltd in Rajasthan, India to implement a continuous funding of 500 kW - 4 MW ground based solar power plants in the State of Rajastan and Gujurat. We have also initiated solar energy portfolios in Africa and South America.
Landowners
A solar land lease is a contract between the property owner and Solarcollab that allows us to build a solar farm on your property in exchange for lease payments to the landowner. Each land lease contract is different, but generally the contract is for 20 years and sometimes there may be an option to extend the term for an additional number of years.
The power generated by the solar farm will be sold to your power grid. This could be a local co-op, large energy company, or individual company.
With the current process involving city planning, permits, and navigating the average 4-year USA interconnection queue bottleneck, the installation of a solar farm can typically take several years. However, our community solar program is designed to be prioritized at the top of the interconnection queue, significantly reducing the timeline. As a result, our solar farms can be installed and operational within six to twelve months. During this time, you’ll be free to continue using your land.
Solarcollab will contract out the operations and maintenace for the solar farm during its life, and will remove all equipment and reclaim your property once the project has ended.
The presence of a solar farm on your property can affect property taxes, but the specifics depend on local tax laws and regulations. Generally, property taxes may increase due to the added value of the solar infrastructure. However, in many areas, there are tax incentives, exemptions, or reductions available for renewable energy projects that can offset these increases.
As for who pays the taxes, it typically depends on the lease agreement between the landowner and the solar farm operator. In most cases, the solar company leasing the land will cover any additional property taxes resulting from the installation of the solar farm. It's important to clearly outline tax responsibilities in the lease agreement to ensure there are no unexpected costs for the landowner.
The amount of land required for a typical solar farm depends on the scale of the project and the desired energy output. On average, it takes about 5-10 acres of land to generate one megawatt (MW) of electricity. For smaller community solar projects, you might need 1-5 acres for a few hundred kilowatts of capacity. Larger utility-scale solar farms can require hundreds of acres to produce multiple megawatts of power.
Factors such as land topography, shading, and local zoning regulations can also impact the land requirements. It's essential to conduct a site assessment to determine the suitability and optimal size for your specific solar farm project.
Choosing the right solar developer is crucial for maximizing your land's potential. Our Community Solar Energy Farm Program uniquely offers multiple revenue streams that no other developer provides, ensuring you make the most money. Here’s why our program stands out:
- Land Lease Agreement: Steady, long-term rental income.
- Solar Energy Production: Sell electricity back to the grid or directly to consumers.
- Energy Storage Systems: Earn more by storing and selling energy during peak times.
- Prefabricated Modular Growhouses: Generate additional revenue by cultivating high-value crops year-round.
- Vertical Farming Systems: Maximize crop yields and increase sales.
- Solar-Powered Water Irrigation: Reduce water costs and improve crop productivity.
- Biochar Soil Enhancement: Enhance soil fertility, yielding premium-priced produce.
- Solar-Powered Cold Storage: Preserve produce quality and sell at higher prices.
- IoT Sensor Precision Farming Data: Increase efficiency and profitability with real-time monitoring.
- AgrisolarAI Monitoring and Optimization: Use AI to optimize farming practices and predict yields.
- Carbon Credit Generation: Earn income from carbon credit programs.
- Mobile Plant Extraction Lab Processing: Create value-added products on-site.
- Crop Product Manufacturing: Expand market reach with manufacturing capabilities.
- Community Ownership and Tokenization: Share profits with the community and benefit from blockchain liquidity.
No other developer offers this comprehensive suite of income opportunities. By choosing our program, you maximize your earnings and contribute to community and environmental sustainability.
Absolutely. Our Community Solar Energy Farm Program is designed to allow landowners to have ownership stakes in the solar farm on their property. This means you can directly benefit from the revenue generated by the solar farm, in addition to other income streams such as land lease payments and crop production. By owning a part of the solar farm, you not only maximize your financial returns but also play an active role in promoting renewable energy and community sustainability. This ownership model ensures that profits are shared within the community, giving you a vested interest in the project's success.
Getting started with Solarcollab is easy and straightforward. Follow these steps to explore hosting a solar farm on your vacant land:
- Fill Out Our "Host A Solar Farm Application" on this webpage to see if your land qualifies for partnering with Solarcollab.
- Site Assessment: We will conduct a comprehensive site assessment remotely using Google Maps and our advanced Solar Design software. This process includes evaluating the land’s suitability for solar panel installation, reviewing local regulations, and discussing your specific needs and objectives.
- Proposal: Based on the site assessment, we will provide a detailed proposal outlining the potential revenue streams, project timeline, and terms of the agreement.
- Agreement: Once you review and agree to the proposal, we will finalize the contract, ensuring all terms are clear and mutually beneficial.
- Development: Our team will handle all aspects of the project development, including permits, construction, and connection to the grid.
- Enjoy the Benefits: Once the solar farm is operational, you’ll start receiving income from various revenue streams, including lease payments, energy sales, and more.
Fill out our "Host A Solar Farm Application" on this webpage to see if your land qualifies for partnering with Solarcollab. We look forward to helping you make the most of your land while contributing to a sustainable future.