Enerdeal

Loan Belgium 71 crowd investors so far
Smart Energy Today provides large companies with third-party-financed industrial size photovoltaic power plants for energy bill reduction and green energy wide development.
Loan
Investment type
10 years
Investment duration
€79,749
Already invested by crowd
6.16%
Gross interest rate
0 days
Remaining
71
71 crowd investors so far
100
Already 159% crowdfunded
This campaign ended on 2014-09-30

PVFinvest S.A. (The Company) is a so-called third party investment company, owned by Enerdeal S.A. (http://www.enerdeal.com), specialized in the development of Renewable Energy (RE) and more specifically Photovoltaic (PV) projects. “Smart Energy Today” is a brand of The Company.

Typical projects are realized with commercial or industrial companies consuming a large quantity of electricity and disposing of a large unused surface, generally the roof of their building.

These clients give the opportunity to develop a profitable renewable energy production system, making use of their available infrastructure to install a PV generator and to self-consume locally the produced electricity at a discounted price. Self-consumed electricity is highly profitable, because the full cost of the electricity is saved, including the expensive distribution costs and taxes and because green certificates are then generated at a higher rate.

These projects are typically generating a double digit Return On Investment during 10 years while creating a win-win situation for as well the user of the PV system as the investor.

The clients receive the opportunity to utilize a part of their unused infrastructure to allow the Company to install and rent a PV generator for a 10-year period. The deal is profitable because during 10 years the renting cost will be substantially lower than the cost of the saved electricity and because they will receive the PV system for free at the end of the 10-year period.

For the Company, the investment in a PV system allows to develop a profitable and low risk revenue model, based on the renting fee of the PV generator and on the production and sale of green certificates.

The strict screening and selection of the opportunities together with the bank, the validation of the projects by an independent certification office and the strict management of project processes allows to reduce the risks at a minimum level.

To further develop its large portfolio of opportunities, the Company is looking for additional investors for a 10-year duration loan at 7 % p.a.

Market

In Brussels and Wallonia, there are thousands of industrial buildings with important energy consumption levels and more than 1000m2 of available roof area.

To date, less than 1% of them has been fitted with photovoltaic installations.
75% of these large scale opportunities belong to groups which can't afford investing in non productive assets either for corporate criteria or for financial limitations.

Third party financed opportunities, with their investment-free approach, have a success rate well above any direct investment opportunity.

Competition

There are 4 or 5 competitors on the Belgian market. Most of them are pure private equity companies who subcontract everything, from business develomment, to engineering, installation, monitoring and maintenance.
The differentiation which Smart Energy Today brings lies in its affiliation with Enerdeal, a leader in turnkey industrial size photovoltaic projects, in Flanders, Brussels, Wallonia and Luxembourg.

The crowdfunding financing model will definitely be an additional major advantage because it brings on one side a true and unique socio-ethical add-on to the investment and on the other, it strengthens the fundamentals and the credibility of the company, as the whole business model and the financial solidity has been addressed by the promoters.

The world leader in this solar crowdfunding business is definitely the US company called Mosaic (http://www.joinmosaic.com). Some others are starting up in France (http://www.lumo-france.com), in the UK (http://www.abundancegeneration.com) and in Germany (http://www.greencrowding.com)

Revenue model

The Revenues of photovoltaic projects in the Walloon region are coming from different sources:

The green certificates

According to the Walloon government photovoltaic installations respecting a number of criteria receive a number of Green Current Certificates (gcc’s ) depending upon the size of the installation during a period of 10 years.
As from August 1st 2014, the subsidies will be as below:
For the first 250 kWp the installation is receiving 3 gcc’s per MWh produced if the panels used are manufactured in the EU.
Above 250 kWp the installation receives 1 gcc per MWh.
Given these conditions, the allocation of the gcc’s is automatic and the sales price will be guaranteed at 65 € by the CWAPE.

Roof or land stability study Grid connection study ( by the local grid operator (ORES, Tecteo, …)) Pre-approval of the project on the capacity list of the CWAPE. 60 % auto-consumption of the yearly production. This requires a detailed upfront calculation to make sure that the production and consumption data are respecting this requirement. Once the study proved the 60% auto-consumption ratio the allocation of the gcc’s will be automatic during 10 years. The PV system will thus have to be sized accordingly.

In addition, the following certifications will be realized at the end of the installation of the system:

RGIE (Réglementtation Générale pour les Installations Electriques) certification of the electrical installation by AIB Vincotte or an equivalent certification company CGO (Certificat de Garantie d’Origine) certification by AIB Vincotte once the installation is connected to the grid. Rental of the photovoltaic installation

The user of the electricity will be paying a yearly rent to PVFinvest. This rent is mostly expressed as an amount per kWp installed on the premises for which PVFinvest receives a 10 year right to build from the owner of the building.

Residual Value

At the end of the lease term, depending on the negotiated conditions, the beneficiary can acquire the installation and get it operate for about 15 more years

Achievements

The company has already financed through its Smart Energy Today scheme two industrial projects which are operating to date well above their expectations (109%).

Besides these projects, the affiliated company Enerdeal (http://www.enerdeal.com) has already installed more than 50 similar industrial projects all over Belgium and Luxembourg. All details and references on Enerdeal website.

The company has already financed through its Smart Energy Today scheme two industrial projects which are operating to date well above their expectations (109%).
Besides these projects, the affiliated company Enerdeal (http://www.enerdeal.com) has already installed more than 50 similar industrial projects all over Belgium and Luxembourg. All details and references on Enerdeal website.

Problem

The industry and commercial business is more than ever focused on core business and has limited available investment capacities.

Energy cost is a growing concern for most companies and is becoming a substantial part of the operating expenditures.

All companies would like to benefit from a greener image but visible projects are not numerous.

The value proposition of Smart Energy Today brings them a unique opportunity to step in renewable energy with immediate return (savings on electricity bills) and highly visible solution to promote or reinforce their corporate social responsibility.

Solution

Direct approach of companies or large real estate owners.
Industrial zoning = copy-paste what my neighbour did
References from former customers

This campaign ended on 2014-09-30

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