Solar panels have a lifespan of roughly 25 years, and a stable operation of power plants until the end-of-life, as well as maximized investment returns, rely significantly on site maintenance and cash flow management. Micro Technology has launched a brand new operation model today (19th) and hopes that publicly transparent solar power generation data as well as cash flow innovation will achieve the target of public participation by allowing consumers to utilize solar funds in a more flexible way.
Taiwan has been developing renewable energy vigorously in recent years by having laid down the 20GW target, 4 times the existing installed capacity, before 2025, which indicates the substantial potential in this market. However, the exuberant development of solar power has also resulted in challenges and issues that need to be addressed. The current solar market in Taiwan lacks public transparency, competes for profits from land resources, and needs a better financing environment. Solar plants are usually completed by scattered institutions and manufacturers from development, construction, financing, insurance, maintenance, to fund utilization, and the fact that a solar plant costs a fortune means that the public will not be able to participate in the process easily.
Micro Technology has thus joined hands with Sola Bloc and released a brand new operational model of “Power Flow, Cash Flow, and Information Flow” by integrating all technology through the blockchain technology and incorporating Industrial IoT (IIOT), which not only develops monitoring systems that facilitate public transparency in the information of solar plants, but also allows consumers to instantly check on site construction and power generation data through the APP and the website.
▲Micro Technology Chairman Wang Min-di showcasing the APP interface.
Micro Technology also released financial innovation services at the same time by providing joint leases, financing, insurances, privately offered funds, and trusts through working with enterprises including National Development Fund, Howard, Union Bank’s Venture Capital, Taipei Fubon Commercial Bank, Shin Kong Commercial Bank, Cathay United Bank, and Orix Auto Leasing Taiwan Corporation. Wang Min-di, Chairman of Micro Technology, commented that taking Tesla and Orix as examples, consumers are able to pay for the rental fees of Tesla using the earnings from solar generation.
Micro Technology has also created a friendlier investment method in solar power in the process by securitizing solar plants. As pointed out by Wang Min-di, Chairman of Micro Technology, consumers can even invest in 0.1 or 0.5 of a power plant, and multiply the power generation with the investment ratio, before obtaining the exclusive monthly and quarterly returns.
The company had established a 220MW power plant that is currently in operation, and is expected to initiate the 10MW “Micro 1” between the end of May and June. Wang Min-di pointed out that the operation unit is approximately from 10K to 100K shares, and the investor is able to enter and exit the secondary market after one year. Costing NTD$10 per share, the shares are divided into preferred shares and common shares, where preferred shares will receive a fixed 5-6% of ROI each year, with relatively smaller risks in preferential dividends compared to common shares, and common shares require a longer investment period, but the ROI is higher in comparison. The current ratio of preferred shares to common shares is 7:3, and are released in par values, with approximately 7-8 million preferred shares that combine to a total of NTD$10 million.
Micro Technology will continue to expand on the scale in the future by working with Union Group in the 3rd and 4th quarter on co-drafting and issuing privately offered funds, and is expected to establish 100 rooftop solar plants and 5 ground solar plants in 2021, in order to achieve the targeted installed capacity of 400MW and the securitization scale of NTD$20 billion.
(Cover photo source: captured by <TechNews>)
