Swapping pWatts into uWatts

When the a Project completes all of its installation milestones, the Protocol automatically takes the pWatts of this Project that are inside the holders' Wallets, and swaps them for newly created uWatts. The amount of uWatts received for each pWatt is defined by the swap factor associated with the Project that is being swapped.

Usually, for Solar Power Plants this swap factor is close to 1.0, but it may vary depending on the particularities of the Project, such as geographic location, electrical efficiency of the equipment used, mounting type (i.e. solar tracker or fixed), and whether it is a Self-Consumption or a Solar Farm Project, which exposes the Project to different types of risks and particularities.

One of the purposes of the swap factor is to allow different types of Projects to be included into the Reserve and to incentivize participants to provide funding to different Projects despite the differences in the specific details between Projects. The swap factor also ‘normalizes’ the unit economics of a new Project in order to match the conditions of expected future cash flows generated by the Project.

The origination of projects is the only way in which uWatt tokens are created. In other words, the inclusion of Projects into the Reserve is the "mining" mechanism for uWatts in the context of the Unergy Protocol.