The intention of the Unergy Protocol is to provide funding to diverse types of clean energy sources. However, initially Unergy will focus on grid-tied solar energy Projects because of their scalability and ease of installation in emerging markets. In the near future, other types of clean energy sources like riverside hydroelectric power, wind turbines, biomass, nuclear, among others, may be implemented.
Some factors that can influence the (energy and/or financial) yield of a Project, are:
Project Location: The amount of sunlight and weather conditions at the location of the Project. Usually, solar projects in locations with high levels of sunlight and lower temperatures will produce higher yields.
Energy price: The negotiated price (for a PPA) or the energy spot market conditions that determine the economic yield of the Project. The higher the energy price, the more profitable the Project will be.
Capital Expenditure (CAPEX): The initial investment required for the construction of the project. Different solar installers often offer different prices for the same project. For larger projects, bidding processes are typically used to identify the lowest cost option from a select group of installers.
Project lifetime: The number of years the asset can generate energy and profitability. The expected lifetime for solar energy Projects is 30 years, but can be shorter if the project’s PPA has an asset transfer clause. In this case, the PPA’s energy price will rise to compensate for the shorter term.
Grid-tied solar energy projects can be classified in two types: Self-consumption and Solar Farms (Utility-scale Projects).