- 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
What are Energy Segments?
An energy segment is a portion of a renewable energy project.
- In a solar PV installation the sum of all the solar modules, inverters, electrical equipment, labour, permitting and other costs to get the project commissioned and producing power are added up and divided by $10 to arrive at the total number of energy segments in a project.
- If a project consists of 1,000 segments and produces $500 in power in its first year, each energy segment would entitle its owner to 50¢ worth of revenue. This revenue can then be used to offset the customer’s own power consumption.
- Every energy segment is sold for $10. However, the amount of energy produced from different renewable energy projects will be different. Thus, the revenue generated from segments on different projects will be different.
- The number of energy segments available in each project varies with the size of the project.
- Each energy segment in a project will generate the same production in a given year; however, energy segments in different projects will have different levels of production.
- The amount of power and energy generated will vary between projects, due to design factors. Differences in design will affect the amount of production from a single energy segment. Larger projects are likely to benefit from economies of scale; therefore, energy segments on these projects may have greater production and a lower cost per watt.
Small and affordable $10 segments allow everyone, regardless of location or income, to benefit from renewable energy projects. The owner of the energy segment has the right to the power produced from the energy segment for a specific period of time (From 1 year up to 20 years).
We create partnerships with customers that have the desire to optimize a locations potential to generate renewable energy. The project sponsor is the property owner of the space that will host the project. This customer can come in many different forms, from a homeowner wishing to install solar PV on their home or garage, to a business owner that covers the roof of one or more large building with solar modules.
EnSegs provides the project sponsor with the unique ability of providing the community with the option of purchasing a percentage of the projects power producing energy segments. This option has many advantages: it reduces the total cost of ownership, maximizes the size of the system, reduced the overall cost of each installed watt, and allows the community (energy segment owners) to purchase the rights to the energy produced from the energy segments. The project sponsor owns 100% of the project; however,
- the community can purchase a percentage of the energy segments; thus, owning the right to the revenue generated from a renewable energy project.
- EnSegs can be authorised to sell up to 50% of the power producing energy segments on a given renewable energy project.
For questions or comments on the “What are Energy Segments?” section please send us an email to CustomerService@ensegs.com