- What Are Energy Segments?
- Economics 101
- I Care About The Environment!
- How Do Energy Segments Generate Revenue?
- The Project Sponsor Scenario
- The Segment Owner Scenario
- Example Project
How do energy segments generate revenue?
Every renewable energy project produces power and this power has value. The project sponsor pays EnSegs for the power generated by the energy segments that they do not own. EnSegs then pays the segment owners (the project sponsor usually owns 51% of the energy segments). If a project produces $100 worth of electricity in a month this $100 is paid to the energy segment owners.1
- The project sponsor owns 51% of the segments so they would receive a $51 credit on their power bill.
- The community owns 49% of the segments so they would receive $49.
- At the end of each month the project sponsors accounts will be balanced (credit/debit due).
- 1 In Alberta the owner of a solar PV system is not paid for the electricity they generate. The owner receives a credit on their power bill based on the amount of energy provided to the grid. Without monitoring software you are unable to see exactly what your array has produced. EnSegs uses a separate revenue grade meter to measure both the actual production from the solar PV system and the consumption from the building. This information is then used to provide exact billing for both the project sponsor and the energy segment owner.
How many energy segments in a project?
When a project is completed all the costs of labour, equipment, and other expenses are added together. The total cost is then divided by 10 (the cost of a single energy segment). If a renewable energy project cost $20,000 there would be 2000 energy segments.
- The project sponsor owns 51% of the project so they would own 1,020 energy segments.
- The other energy segment own 49% of the segments so they own 980 energy segments.
- Each energy segment would receive 5 cents this month.
- The project sponsor owns 1,020 segments so they would receive $51.
- The other energy segment own 980 segments so they would receive $49.
- Your 100 energy segments would entitle you to $5 this month.
Note: The example above is for demonstrative purposes. As seen in the “Average Yield Expectations” graph the winter months will generally produce less power (and revenue) than the summer months.
For questions or comments on the “What are Energy Segments?” section please send us an email to CustomerService@ensegs.com