E.ON is joining with greenXmoney to offer "watt" securities
- Platform brings inexpensive power producers together with investors
- Private investors can invest in solar and wind power facilities online
E.ON now offers everyone an opportunity to profit from the energy revolution – even those who have no roof space available to install their own photovoltaic equipment. To do so, E.ON has entered into a partnership with greenXmoney. The German start-up operates a trading platform that brings together producers of renewable energy with private investors. Starting now, investors can use www.eon.de/greenxmoney to make investments in German solar and wind power facilities easily, securely and independently of any particular bank.
The principle involved is simple: Owners of solar and wind power facilities register their units on the greenXmoney platform. Prospective investors can compare the solar and wind power systems – with respect to location, size, output or returns – and then decide which low-price energy producer they want to invest in. For a one-time minimum payment of 500 euros, the investor acquires a portion of the future electricity revenues generated by the solar or wind power system they choose. The customer need not hold onto his investment through the end of the period and can resell it at any time.
"Our partnership with greenXmoney constitutes another important building block of our digital solutions business. With our battery and storage systems, E.ON SolarCloud as well as Google Sunroof, we are offering innovative products that provide our customers greater independence. With greenXmoney, our customers who don't have any roof space suitable for generating power on their own now also have an opportunity to profit from renewable sources of energy”, states Karsten Wildberger, member of the E.ON board.
"This makes it easier than ever for anybody to track how his investment is paying off and how much clean energy 'his' facility is generating," explain Torsten Blumenthal and Murat Sahin, managing directors at greenXmoney. "It's not only good for the environment, it's good for the wallet as well."
The concept uses the well-established practice applied in factoring agreements, which greenXmoney calls "watt" securities. Equipment owners sell reliably anticipated compensation from the Renewable Energy Act (EEG), buyers acquire this compensation and receive in return a reliable appreciation. Those who put up their money receive biannual payments from their investments.
The business model offers benefits for both sides: The revenues from electricity generation provide the "watt" security purchaser's investment with real proceeds without requiring the investor to directly participate in the facility. The equipment operator obtains the money needed while retaining ownership of the equipment at all times and can keep for himself any potential proceeds from above-expected output. In this way greenXmoney differs from other crowd-funding models, which involve the participation in a facility by an investor, either directly or through subordinated loans, thereby increasing his risk.
E.ON holds a 25.1 percent interest in greenXmoney.