SunContract 2019 Project Update
2019–Present Financial Position
Dear SunLovers,
We are delighted to share with you SunContract’s 2019 Project Update that details the project’s strong financial performance and outcomes across all its client offerings. We understand that this information is essential for a wide range of stakeholders and we want you to be able to make sound financial decisions.
From 2019 up to date, SunContract continued to deliver flexibility to its electricity customers while also delivering on its purpose to introduce new ways for energy customers to become more sustainable and self-sufficient.
Our balanced approach by business mix and focus underpins our ability to continue to perform well against our medium-term objectives, even in a trying time, characterized by the COVID-19 pandemic.
In today’s update, we disclose:
- 2019 + 2020 Energy self-sufficiency product revenue
- 2019 + 2020 Closed contracts for electricity
- Grants SunContract has received in the last year
- Our costs in the last year
Energy Self-Sufficiency Products Revenue
We’re pleased to announce that in 2019, our sales in energy self-sufficiency products (solar power plants, heat pumps, IR panels etc.) amounted to USD $2,250,000.
Since the beginning of 2020 to this date, the sales have increased by an additional USD $1,300,000 bringing this number to a total of USD $3,550,000.
During this period, we more than doubled 2018’s revenue of energy self-sufficiency products and we anticipate a similar trend in revenue growth as regulations and energy customers become more accommodating of renewables and as the cost of purchasing given infrastructure decreases (becoming more affordable for customers).
Electricity Sales
When it comes to electricity contracts which were closed on the platform in the year 2019, these amounted to USD $1,463,221.
In 2020, this number has increased by an additional $USD 562,779 bringing the total electricity contracts signed to USD $2,026,000.
While we are content with this number, we are not impressed by it. However, this last year has been used strategically for consolidation and preparation to scale the business through the development of our new service infrastructure on which we are now offering a new energy management service. We anticipate a better growth projection for electricity contracts on the platform in the next year.
SunContract & Partners Receive $2.3M USD Grant
In addition to the funds generated through the platform, SunContract and a consortium of its partners were also granted an additional USD $2,363,665 for research and development in order to introduce artificial intelligence and automated trading on the SunContract platform.
The R&D project, which is slated to run for 3 years, aims to concretely show the positive business effects of blockchain technology and P2P energy trading, when upgraded with automated trading based on Artificial Intelligence (AI). Currently, SunContract has completed 1 year of development for this project, with the remaining workload scheduled to be completed by the end of 2022. We are thankful to the Ministry of Economy and the European Regional Development Fund for granting us these funds.
***NEW: SunContract Approved for Additional Funds
We are very pleased to tease our community members with emerging information regarding additional funding which we have recently been granted. However and unfortunately, due to non-disclosure agreements and procedures, we cannot share any more information regarding these funds and the granter until we are given the green light to do so (which we anticipate will be in a few months).
Ok guys… but what about expenses?
Don’t worry… we’re getting there!
Our expenses in the last year amounted to USD $1,350,000 which was allocated in similar proportions as we did token sale funds:
- Development (50%): USD $675,000
- Marketing (25%): USD $337,500
- Operations (15%): USD $202,500
- Legal costs (10%): USD $135,000
Development costs went towards curation of new services, some of which are still in development and yet to be revealed. We are also working on building a new mobile and web app, as well as ongoing maintenance of the current technological infrastructure. Operational costs include but are not limited to licensing costs to become a certified exchange and wallet provider as well as opening up of a new operational office in Tallinn, Estonia. Sales and Marketing funds went towards acquisition of new customers on the local market through various means such as but not limited to newspaper publications. And lastly, legal fees went towards procurement of legal services for a variety of our business development needs.
Continued user growth & infrastructure development
In comparison to the financial update which we issued for the year 2018, our customer base has grown significantly — with our customers not only showing an interest for our radical P2P business model, but also for energy self-sufficiency products which we offer on the platform’s shop section.
Today, the SunContract platform boasts more than 5000 customers. Its consumers ranging from residential units, to commercial and industrial facilities while its producers range from households to medium-size commercial facilities .
In addition to P2P energy trading and our shop for energy self-sufficiency products, SunContract is also now offering an additional service through its newly developed Management Portal, with more exciting, new services to be unveiled in the near future.
We designed the energy management portal to benefit those who wanted to gain from this new, radical business model, but lacked the time or interest to actively engage in P2P energy trading. Thanks to the portal, our customer acquisition process has significantly been stimulated since it enables essentially every energy customer to take part, be it directly by trading themselves or indirectly through our energy management offering.
Licensing
As we mentioned in our 2019 recap, we opened a new operational office in Tallinn, Estonia in December 2019. One of our core objectives of having an operational base in Tallinn was to apply for platform licensing in order to become a certified exchange and wallet provider for our community members and energy customers.
We are pleased to announce that we are now at the final stage of this licensing process which means in the near future… we will be offering new community-related services and possibilities to our customers.
While we wait to be granted these licenses, exchanges remain a fundamental means through which our backers can access the SNC token. In the last year, SunContract got listed on two new exchanges: Tokens.net, as well as fatbtc.
Parting short from CEO — Gregor Novak
“Operating ethically, treating our clients and employees with utmost respect, investing in the sustainability of our communities and continuing to foster our unique client-focused culture of collaboration — these are the vital elements that ensure the success of our business. In a world of accelerating change, it is critically important we continue to focus on strengthening the capabilities of our organization, both by developing our people and by continuing to attract top talent for top innovation,” said Gregor Novak, Co-Founder & CEO of SunContract.
