SolarCoin is a digital currency backed by the Sun. The main purpose of this global initiative is to provide an incentive to produce solar energy, thereby rewarding SolarCoins to the producers of solar electricity.
SolarCoin was launched in 2014 by a group of volunteers, who together formed the Solar Foundation. The concept was adopted from a paper Deko — An Electricity backed currency proposal.
The Solar Foundation has combined solar energy with the blockchain technology of Bitcoin which has led to the formation of SolarCoin.
SolarCoin Foundation maintains a public ledger that documents all the SolarCoins given out to the producers, through SolarCoin Blockchain explorer.
SolarCoin vs. Bitcoin
At this point, it is key to compare these cryptocurrencies in order to fully understand their credibility and energy requirements. SolarCoin is a direct incentive for the production of solar energy, that is, there are actual physical indicators for earning SolarCoins. Also, the mining of SolarCoins is 50 times more energy efficient than that of Bitcoin. (Read more: How much energy does Bitcoin mining consume?, SLR has an updated Hashing Algorithm)
Production of solar electricity leads to negligible pollution per unit of electricity produced as compared to that from conventional sources such as fossil fuel and nuclear energy plants. Solar energy is accessible to everyone and is present in abundant quantity. Therefore, one can easily tap solar energy with the help of solar panels.
One can join this SolarCoin initiative and obtain its benefits by providing the proof of solar electricity production either using Solar Renewable Energy Certificate (SREC) or any other recognised third party. For every 1MWh generated, the Open Currency Association (OAC) will send you a SolarCoin. This means that 1MWh= 1§SLR.
Top 5 Reasons To Start Investing In SolarCoin
1. Inculcates a sense of clean and green environment among people
2. Reduces the time required to retrieve the cost of solar installation
3. A source of revenue for solar producers in the form of SolarCoins
4. One can earn revenue even without installing solar panels by participating in Open Market Trade, SolarCoin can now be converted into Bitcoin and then into major currencies in the world
5. In the future, SolarCoins will be used as a mode of payment to utilities.
This brings us to an important question. How many SolarCoins can be earned annually?
On an average, a house requires a rooftop solar plant size of 4kW — 5kW to power the entire house. This generates 5.256–6.57 SolarCoins (SLR) annually. If an average 4kW-5kW is being produced by any house with solar panels installed can earn 5.256–6.57 SLR annually. This translates to INR 700 of earnings through Solar at its current valuation.
Let’s extend this calculation to realise the potential of this emerging cryptocurrency. A factory with 1MW of installed Solar can earn up to INR 2 Lakhs worth of SolarCoins in a year.
The Future Is Now.
With rumours of global leaders like Tesla jumping on the SLR bandwagon, its valuation and usage will certainly surge as Cryptocurrency transforms into a household concept in the days to come.
By installing solar panels on your rooftops, it not only provides electricity for self-use but also provides revenue by sending the excess solar electricity generated back to the grid. In addition, SolarCoins can also be earned. With the increase in the price of electricity and rapid depletion in the use of non-renewable energy, we are looking at a future where everything will be powered by solar energy.
To secure your energy future, it’s always best to stay one step ahead. So, have you made the switch to solar, yet?
Written by Krithika Vijayakumar