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Frequently asked questions

InvestorS FAQs

    Benefits & Assumptions

  • 1
    What are the benefits to use SunVest?
    • Eco-friendly/sustainable energy generation
    • High yield
    • Regular payback (bi annual)
    • Inflation protected (as we included conservative inflation rates into the model)
    • Conservative projections (based on assumptions made. See assumptions)
    • Transparency in calculations of your returns.
    • You can also track the energy produced by the solar system and your returns via our online energy monitoring tool, the SunMeter, which measures the energy output by the solarPV system.
  • 2
    What are the assumptions taken for the estimated returns on investment?
    Assumptions are*:
    1. 3.2 average sunhour per day
    2. 2.5% electricity tariff inflation/year
    3. 1% system degradation/year
    4. 1% inflation/year
    *This for Singapore and the values vary between countries. SolarPVExchange reserves the rights to adjust the values from time to time to reflect any changes based on market research and latest trends/reports.
  • Risks

  • 1
    Is it safe to invest in solar projects?
    Generally yes, as investing in solar projects is often considered a safe long term investment given the following factors:
    1. As long as the sun shines, there will always be solar energy available. So unless the sun stops shining forever, then solar energy will not be available. But if the sun does stop shininig forever, then the propects for us will be very very dim (pardon the pun).

    2. (Good credible) Solar PV Panels generally have a 20-25 years warranty and this means the manufacturers are confident on the life span of their solar PV panels.

    3. Next, for many years, Germany has embarked on solar energy to supplement its electricity demand and as of 2014, solar power in Germany accounted for an estimated 6.2 to 6.9 percent of the country's net-electricity generation. In fact, more and more countries are embarking on solar energy in recent years given the drop in prices of solar technology and also the pressure to go green and reduce carbon footprint. And renewables offer better price stability than fossil fuels. A cold snap, for example, can send gas and oil prices through the roof, since they are used for heating as well as electricity. So as you can see from our assumptions, our projections are based on rather conservative figures and therefore are relatively safe. However like any investment, risks due to change of government/government policies, acts of god, clients liquidation are beyond our control and will, no doubt, affect the SunVest projects and its returns. Investors are advised to do their due diligence and to consult with their financial/legal advisors before participating in any SunVest projects.
  • 2
    How do you calculate the returns and how secure are the returns?
    The returns of your investment is basically a simple multiplication between the energy produced by the solarPV system and the agreed discounted tariff (the final energy price after deducting the agreed discount rate).

    Energy Produced (kWh) x Discounted Tariff Rate = Returns (how much you get back as your returns)* *inclusive of SolarPVExchange’s 4% service fee.

    How do the changes on the energy price/tariff affect your returns?
    What happens if energy price goes up in the course of the 20 years or during the agreement term?
    E.g. Assume at year 1:
    a. Solar system starts at 100% level of production and assume it produces 1000kW of enery per month.
    b. Tarrif is at $0.20/kWh
    c. Discount rate is fixed at 10%, thus effective discount tariff is $0.18/kWh
    d. Monthly energy produced is 1000kWh/month
    e. The result is you will get $180/month
    f. This is derived from:
    a. Monthly Energy produced 1000kWh x $0.18/kWh = $180/-

    Next, assume we bring forward to 10 year’s time and the following occurs:
    a. First, assuming there is a 1% degradation/year** on the solar system, therefore the system will be performing at 91.35% of its year 1 capacity..
    b. Monthly Energy production is now at 913.5kWh/month
    c. Next, we assume that the energy inflation rate is at 2.5%/year**, therefore the tariff at the end of the10 years, will be approximately $0.25.
    d. Discount rate is fixed at 10%, thus effective discounted tariff is $0.225/kwh (90% x $0.25/kWh)
    e. The result is you will get $205.54/month (an increase of $25.54/month or 14% increase.)
    g. This is derived from:
    a. Monthly Energy produced 913.5kWh x $0..225/kWh = $205.54/-

    As long as the prevailing tariff increases (which it should given that energy prices will tend to increase over long periods, like 20 years in this case), your returns of investment will increase too.
    ** These are the assumptions we make in our returns projections and is quite conservative and safe, based on historical data and industry practice.
    Next, how about the energy production and performance of the solarPV panels?

    As most (credible) solarPV panels have a warranty of 20-25 years (make sure you check with your installer on this) and also are known to operate at a certain level for the duration of the warranty, therefore as long as the sun shines, the energy produced by the solarPV panels should be relatively stable and safe. Note: As mentioned, we have included a 1% degradation/year on the solarPV system performance which is quite a conservative number according to historical data and industry standards.

    Next the other component which affects the energy produced is the average sun hours shining on the panel.
    The energy produced is calculated by:
    SolarPV system Size (kWp) x Sunhours
    E.g. A 300kWp solarPV system on a day, which has 3.2 effective hours of sunlight shining on the system, will generate 960kW of energy.
    For each country, we usually take a much reduced rate of the average sun hours from NASA readings in our projections so as to be safe/conservative. For example, in Singapore, we assume 3.2 average sun hours in our projections and this is quite conservative and safe. Thus if the average sunhours for Singapore is above this number, the energy produced will be more.
    As a result, you will get more returns back using the same formula:
    Energy Produced (kWh) x Discounted Tariff Rate = Returns (how much you get back as your returns)*
    *inclusive of SolarPVExchange’s 4% service fee.
  • 3
    What happens if the solar installation doesn’t generate enough energy?
    Energy generation depends on the sun-hour (average sun-hour per year based on NASA data) and the solar panel energy output, and solarPV panels have a warranty of 20-25years (good credible solarPV panels, so please check with your installer on this).
    We have taken the following assumptions when making the projections to the energy production by the solar PV system. This includes a conservative average sunhours in the territory (we take a conservative discount off the NASA average sunhours for that area) and we also include a 1% degradation/year on the solarPV system. This is rather safe based on industry research. So unless the sun stops shining indefinitely, then your solar installation should continue to generate energy at the projected rates.
  • 4
    What if the initiator doesn’t pay?
    In cases of late payment, there is a late payment charge added to the subsequent month’s bill. If the owner decides not to pay at all, the investors have a right to sue and the value of the termination can also be determined by the early termination fee table if the investors choose to do so.
  • 5
    What happens if any equipment breakdown or needs to be upgraded?
    The target amount raised includes the following fees/costs to cover the lease period, which includes items like solarPV system maintenance, insurance, contingency fees, inverter warranty.
    If the initiator wants to upgrade the system, which doesn’t usually happen as the good solarPV panels are built to last 20-25 years, then the initiator can choose to crowd source through the investors for the upgrades and extend the joint leasing tenure accordingly.
  • Fees and terms of SunVest

  • 1
    Who can open a SolarPVEXchange account and start investing?
    You have to be 21 years of age or older in order to invest.
  • 2
    Are there any fees for investing through SolarPVEXchange?
    1. We charge a commission fee on the project, which is already included in the total investment sum.
    2. We also charge a service fee for the collection and returning ofhte funds back to the investors.
    All these fees are already taken into consideration in the returns estimation.
  • 3
    Is there a fee for the Top Up or Withdraw function?
    No, as your E-Wallet is connected to your PayPal/bank account, therefore you can transfer the funds easily via your paypal/bank account through your E-Wallet. However your bank or paypal may or may not have a service fee for using its service and we advise investors to check with paypal or any banks, which they would like to use to top up or withdraw from their E-Wallet.
  • 4
    Is there a fee for using SolarPVEXchange?
    No, there is no setup or recurring fee when you register as a initiator, installer, or investor.
  • 5
    What happens when a project is not funded successfully?
    As this is based on a all-or-nothing crowd sourcing model, if the project is not fully crowd sourced, the amount raised will be returned back to the investors’ e-wallet account.
  • 6
    Can I invest in multiple projects at once?
    Yes, to diversify you portfolio of investment, you can fund as many projects as you want..
  • 7
    How can I top up my e-Wallet balance?
    Currently you can Top-up your balance via Paypal, Bank Transfer, Remittance and Cheque.
  • 8
    How can I keep track of my investments?
    You can keep track to your current investments under the “My Investments” tab after you log in.
  • 9
    How can I see the projected returns of my investment?
    For that you can use our “Savings and Payment Schedule” available online.
  • 10
    In the scenario where the project is fully crowd sourced, how long is the leasing term?
    The lease term is generally set at 20 years, unless otherwise specified.
  • Returns

  • 1
    When will I get my payment?
    Payments are made every June and December based on the collection of revenue from the initiator between July – Dec (to be paid on the subsequent June payment) and January – June (to be paid on the subsequent December payment)
  • 2
    Is the SolarPVExchange service fee already included into the payback to investor projections?
    Yes.
  • 3
    Are there other ongoing maintenance/management cost? Are there they included in the IRR and yield calculations?
    Maintenance services, insurance, system monitoring and contingency fees are already included in the target amount to be crowd sourced and therefore will be taken care of by an appointed credible maintenance company.
    These fees are also included in the computation of the project yield and returns.
  • 4
    Why the investor account cannot be credited monthly, but half yearly?
    To offset any delay of payment from the initiator, in case the initiator is away for holidays or work and forgets to pay his monthly bill.
  • 5
    How are the returns calculated?
    Your returns are calculated based on:

    1. Energy Produced (from the solar PV system), measured in kWh

    2. Discounted Tariff Rate: $?/kWh

    Energy Produced (kWh) x Discounted Tariff Rate = Returns (how much you get back as your returns)*
    *inclusive of SolarPVExchange’s 4% service fee.
  • Others

  • 1
    Who is the initiator of the project?
    The initiator can range from an individual homeowner to a company.
  • 2
    Who owns the installation?
    The investors hold the ownership of the installation as tenants in common.
  • 3
    What if the initiator sell the house/building?
    If the Initiator intends to sell the Property or otherwise vacate the Property, it or he may seek the written consent of the Majority Investors in relation to the following:

    (a) the novation of the Initiator's rights and obligations under this Agreement to the new owner of the Property; or

    (b) the movement of the Installation (at the Initiator's own costs) to any other property owned by the Initiator.

    If the Majority Investors fail to consent to the request by the Initiator within 14 days of thereof, the Agreement shall be terminated immediately and the Initiator shall pay to the Investor(s) an early termination fee.
  • 4
    Can I transfer/sell/assign my rights, title and interests in and to the installation?
    Yes you can transfer/sell/assign your rights, title and interests in and to the installation to any third party but you need to inform SolarPVExchange of the details of the Transferee (new owner).
  • 5
    Can an investor stop his engagement before the leasing term?
    Yes, he can transfer/assign his rights, titles and interests to any third party.
  • 6
    Does the Singaporean government approve this business model? Is SolarPVExchange MAS approved?
    Before SunVest was launched, we sought legal advice from one of Singapore's top law firms on our SunVest business model. We then structured our business model and legal documentation in accordance with their advice, so as to ensure that SunVest operates within the Singapore legal framework. The principle is simple:
    1. A building owner wishes to install a solarPV system on his/her building and crowd sources his/her solarPV system by putting his project on SolarPVExchange’s SunVest platform.

    2. Next investors see the SunVest projects online and decides to crowd source for this project and pays for the system including the maintenance and service fees, insurance and extended warranties for the duration of the joint leasing agreement (which is usually 20 years unless otherwise stated).

    3. This group of investors, who have helped crowd source for the solar system, are now joint owners (i.e. tenants in common) of the solar PV system and leases the solarPV system to the building owner who put the project on SunVest in the beginning.

    4. Once the system is up and running, the building owner will the "lease" through SolarPVExchange (collecting on behalf of the investors) and will then remit this amount* to the investors every June and December. June payments are based on the collections from the previous year July – December period. December payments are based on the collections from existing year January – June period.

    *Note: There is a 4% service fee which SolarPVExchange will deduct from the monthly collected monies before remitting the funds to the investors in June and December.
  • 7
    Who should I contact for any requests?
    Please kindly contact us by e-mail at enquiries@solarpvex.com