SolarCoin & SMA: A Crossroads for Solar Rewards and Environmental Progress
Bottom Line Up Front: SMA’s current policy change to drop support for SolarCoin on its new platform risks forgoing a multi-million dollar opportunity for the solar community and represents a setback for incentivizing renewable energy production.
In the vanguard of the solar energy industry, SMA’s influence extends across more than a million solar installations worldwide. This leadership role brings with it the power to drive significant economic and environmental innovation. One economic innovation hinges on continued support for SolarCoin, a digital currency awarded for solar energy production, which, despite being previously supported on SMA’s older monitoring platform for years, faces an uncertain future with SMA’s new system.
The potential of SolarCoin within SMA’s network is not to be underestimated: with an annual energy output of 4.62 million MWh, the corresponding issuance of SolarCoin could inject anywhere from $550 million to an impressive $5.5 billion into the solar market, based on conservative and optimistic valuations per claimant. Currently, with a market cap of $2.5 million based on the active circulation of SolarCoin, the groundwork for substantial economic gain is already laid. (see summary of this paper for the math)
SMA’s reluctance to integrate SolarCoin into its new platform not only diminishes the earning potential for its network of users but also sends a disconcerting signal to the solar industry and the environmental movement at large. By sidelining the existing SolarCoin program, an opportunity to incentivize clean energy production through financial rewards may slip away, potentially slowing the pace at which solar energy is embraced by the market.
This development comes at a time when the environmental benefits of solar energy are universally acknowledged, and economic incentives are proven to accelerate its adoption. The existing SolarCoin network, with its $0.04 per SLR price, represents a foundation upon which a more robust and rewarding system could be built — one that SMA has the unique capacity to foster.
For the individual operators of SMA’s solar facilities, the integration of SolarCoin could mean the difference between solar energy being a mere environmental commitment and it being a source of financial empowerment. For the industry, it could be a catalyst for innovation and investment. And for the planet, it could mean a faster transition to a greener, more sustainable energy landscape.
SMA now stands at a crossroads: to continue its support for SolarCoin and by extension, the larger goals of environmental sustainability and industry growth, or to retreat from a program that promises to reward the shift towards a greener future.
The call to action for SMA’s vast user base is more urgent than ever: advocate, engage, and mobilize. As the solar community looks towards SMA for leadership, the company’s next steps could define the future of solar incentives and set the precedent for how the renewable energy sector recognizes and rewards the contributions of its participants.
Support Solarcon by reaching out to SMA
- Fill in the contact form for SMA America: https://www.sma-america.com/contact-us
- Use the general address Info@SMA-America.com or even info@sma.de
- Leave a comment in the Sunny Blog: https://www.sma-sunny.com/en/solarcoin-migrates-to-the-energy-web-foundation-what-you[…]d-to-bear-in-mind-following-the-migration-of-the-solarcoins/
- Place some comments here to attract attention: https://www.sma-sunny.com/en/from-sunny-portal-to-the-sma-energy-app-advantages-of-switching/
- Send in-app mail to the CEO Jurgen Reinert. https://www.linkedin.com/in/juergen-reinert/
- Facebook may also give a certain attention: https://www.facebook.com/SMAInternational/
- Contact SMA here! | SMA America www.Sma-america.com
A sample message supporting Solarcoin in the new portal:
Subject: Request for Continued Support of SolarCoin in the New SMA Portal
Dear SMA Management Team,
I hope this message finds you well. As a dedicated customer of SMA, I am writing to express my enthusiasm for your continued support of SolarCoin and to kindly request the integration of SolarCoin in your new portal.
Over the years, SMA’s commitment to SolarCoin has been a testament to your dedication to promoting solar energy and environmental sustainability. The support for SolarCoin not only underscores SMA’s leadership in the solar industry but also aligns perfectly with our shared vision for a greener planet.
In these times, where the emphasis on renewable energy and low emissions is greater than ever, incorporating SolarCoin into the new portal presents a unique opportunity. It would enable SMA customers like myself to directly benefit from generating clean solar power, further incentivizing the adoption and use of solar energy.
The integration of SolarCoin in your platform adds value to SMA’s customer experience and reinforces our collective commitment to sustainable practices. It’s a chance to lead by example in the industry, showcasing how innovation and environmental responsibility can go hand in hand.
I sincerely hope that you will consider this request as a mutually beneficial step towards fostering a more sustainable future. Your support for SolarCoin in the new portal could set a precedent in the industry and make a significant impact on our planet’s health.
Thank you for your time and for considering this request. I am eager to see how SMA continues to lead in sustainability and customer engagement through initiatives like this.
Best regards,
[Your Name]
[Your Contact Information]
[Your SMA Customer Details]
Economic Summary
Here is a brief summary explaining the derivation of the numbers used in the analysis of SolarCoin’s economic potential, with references to the economic paper provided and in the context of the broader cryptocurrency market, such as Bitcoin:
Annual Solar Production Calculation:
Each of SMA’s 1.1 million facilities’ average annual production was estimated at 4,200 kWh, or 4.2 MWh, based on typical solar generation figures. https://cdn.sma.de/fileadmin/content/global/Investor_Relations/Documents/Publications/Praesentationen/2023/2023-05-11-Presentation-Capital-Markets-Day-2023.pdf
The total annual production for SMA’s network is therefore calculated as 4.62 million MWh (1.1 million facilities x 4.2 MWh).
SolarCoin Issuance:
SolarCoin’s protocol issues 1 SolarCoin for every MWh of verified solar electricity production.
The total potential annual issuance of SolarCoins for SMA’s network is equal to their total MWh production, hence 4.62 million SolarCoins.
Market Value Estimation:
The value per node (facility) is extrapolated using the potential value range of $500 to $5,000 provided in the economic paper. Network Capital: Value of Currency Protocols Bitcoin & SolarCoin Cases in Context
The total market value is then estimated by multiplying the number of facilities (nodes) by these values, leading to a range between $550 million to $5.5 billion.
Current Market Price:
The current price of SolarCoin is approximately $0.04/SLR, as indicated by recent market data.
The current market capitalization of SolarCoin is calculated by multiplying the circulating supply (50 million SLR) by the current price, yielding a market cap of $2.2 million. https://coinmarketcap.com/dexscan/zksync/0x1fa81f4854887f9929d43a2377c57cf2ed294d8c/ and https://info.carbonswap.exchange/token/0x26e4991a72728b1a9b1044345e5bf9293e0a1434
Bitcoin Contextualization:
While SolarCoin aims to incentivize renewable energy production, Bitcoin, with a much larger market cap, incentivizes proof-of-work computation.
SolarCoin presents an alternative model within the cryptocurrency world, where the generation of tokens is tied to the production of renewable energy, contrasting Bitcoin’s more energy-intensive model.
The success of Bitcoin demonstrates the potential of blockchain-based rewards to generate significant economic value, suggesting that if SolarCoin’s issuance model gains similar traction, it could lead to substantial growth in the market cap and user adoption.
This summary contextualizes SolarCoin’s potential value within SMA’s network, as well as within the larger cryptocurrency market, drawing parallels to Bitcoin’s economic impact but with the unique angle of promoting sustainable energy production.
