SolarGridX, a Dubai renewable energy start-up, has entered a space that remains fairly untested – that of global solar project finance during a time of tight liquidity.
Founded by Hardik Bhatia, 22, a final-year student at the Dubai branch of the Birla Institute of Technology and Science Pilani, and two of his college friends, the company is looking to transform the industry.
Mr Bhatia, an early investor in Bitcoin and other cryptocurrencies, pondered how to use tokenisation – the process of converting an asset into a digital token through blockchain technology – to fund solar investment.
Inspired by his father, who imported Chinese-made solar panels into India, he set out to find ways to meet growing demand for clean energy in Asia’s third-largest economy.
Mr Bhatia, who is the company's chief executive, and co-founders Prasanth Konda and Yatharth Kher considered using a new and innovative form of financing within a familiar ecosystem.
India, the world’s second-most populous country, is embarking on an ambitious drive to clear up its skies that have been polluted by fossil fuels, notably coal.
With cities such as New Delhi registering very high pollution levels, the country has been forced to hasten its clean energy transition amid growing health concerns.
India plans to install 175 gigawatts of renewable energy capacity by 2022, with 100 gigawatts being generated by solar alone.
Wind is set to account for 60 gigawatts while biomass and hydroelectric projects will deliver 10 gigawatts and five gigawatts, respectively.
Meanwhile, on a global scale, solar capacity is set to double over the next decade, according to a recent Fitch Solutions report.
Solar energy is expected to account for 6 per cent of the electricity generated worldwide by 2029, up from 2.7 per cent at the end of last year.
While the push into solar has appeared to be robust, Mr Bhatia says he noticed a discrepancy in the sourcing of funds for the sector.
“Last year, global solar asset financing stood at around $120 billion [Dh441bn]. Only around $3bn was contributed by the general public. The rest was contributed by big corporations or the government,” he says.
Mr Bhatia feels that the adoption of solar energy cannot continue without access to a broader range of funding sources.
Drawing inspiration from South African crowdfunding start-up Sun Exchange, he came up with the idea of letting investors buy a fraction of a solar panel.
This allows them to reap high returns when they invest in assets in countries such as India that have higher energy tariffs.
Mr Bhatia also looked to eliminate a major restriction on investors on the Sun Exchange platform, who are expected to lock in their investments for 25 years.
“Why would someone crowdfund solar panels when their investment will be locked for 25 years? So that is where we stepped in,” he says.
With liquidity tight around the world because of the Covid-19 health crisis, companies are suspending plans for initial public offerings and introducing deep cuts to spending.
A crowdfunding platform for an industry that has been alienated by several stimulus packages around the world is an attractive proposition.
SolarGridX allows investors to start small by investing as little as $6 per solar cell.
“A solar cell is basically a fraction of a solar panel,” Mr Bhatia says.
“So, suppose you are investing, purchasing one token, we use that funding to put up solar panels in a feasible location in India.
“The electricity generated by those solar panels is sold by us to these consumers in India, and they pay for what they use.”
The return on investment can be up to 16.6 per cent. However, average returns are between 12 per cent and 15 per cent, after allowing for a margin of error.
SolarGridX has focused its attention mainly on expatriates in the Gulf, starting with the UAE, as potential investors.
“In the UAE, people are not able to find good investment options. They often resort to savings accounts, which often provide 0.5 per cent return rates,” says Mr Bhatia.
“There is a need for investment platforms where people can park their money for a good amount of return.”
SolarGridX has signed seven letters of intent with a large Indian company for 20,000 solar cells, which will generate 160,000 kilowatt hours of electricity. The start-up plans to launch its first crowdfunding round in November, once the pandemic eases.
It is also in talks with three Dubai investors.
“We are looking for around $250,000 [in] investment,” Mr Bhatia says. "We are still discussing how much equity we can sell and, based on that, they [the investors] will be looking to fund our start-up."
The company plans to put up solar panels across 50 sites in the first two years and generate about $1.5 million in revenue annually.
Factbox
Date started: 2018
Based: Dubai, UAE
Sector: Solar energy, finance
Size: Six employees, including two part-time staff
Stage: Seed stage
Investment: Dh75,000
Investors: Dubai Silicon Oasis Authority, Department of Finance Abu Dhabi, Bits Innovation Fund, startAD
Q&A
How do you earn your commission?
When we sell one SGX [SolarGridX] token, we take a commission of $0.50 (Dh1.83). On top of that, we have a 2.5 per cent transaction cost, whenever you buy or sell a token.
Where are your first projects in India based?
They're mostly based in Uttar Pradesh [in the north]. We signed these seven letters of intent with one company. It's a big company in India. They have seven manufacturing plants, it’s an an electricity supply company.
Are you looking at government-backed stimulus packages for the clean energy sector?
Talking about India, there are many state funds that promote clean energy. We will definitely look into them, if we're given an opportunity.
How have solar manufacturers been affected by disruptions to supply chains in China?
The supply chain of solar panels originates in China, which is the biggest manufacturer. So obviously, that has led to increase in price of solar panels. 'Make in India' opportunities are increasing for manufacturers in India and they are picking up pace at a higher rate than before.
How much funding have you raised so far?
We have now raised around Dh75,000 in the form of grants from various startup events. But Covid-19 has delayed [formal] fundraising opportunities for us because of a lack of capital in the market.
Honeymoonish
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The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Killing of Qassem Suleimani
ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
Score
Third Test, Day 1
New Zealand 229-7 (90 ov)
Pakistan
New Zealand won the toss and elected to bat
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
