Can SolarCoin be used in Malaysia?

Short answer: Yes.

Will it be used? Hmm... unlikely.

Before I explain my point of view...

What is SolarCoin?

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SolarCoin is a digital currency created in 2014 used to reward solar power producers all around the world. In short, if you are generating solar power anywhere on the map, you are entitled to claim SolarCoins.

Here are some quick facts:

• You are entitled to receive 1 SolarCoin for every 1MWh of solar electricity you produce.

• There are in total 100 billion SolarCoins representing 100 billion MWh. Conservatively, the world currently generates about 0.3 billion MWh of electricity each year. Hence, what SolarCoin is trying to do is incentivize solar power production to grow x3000 in the next 30 years. Hurrah!

• Like Bitcoin, SolarCoin maintains a public ledger called a blockchain to detail each SolarCoin given out to solar power producers.

• The blockchain was built by a group of volunteers that form the SolarCoin Foundation.

• An ICO was never called to develop the blockchain. I wonder where did they get the funds to develop it.

• Unlike Bitcoin, which is rewarded by solving complex algorithms and committing massive computing power, SolarCoin is awarded when you register your solar facility with the Solar Foundation as 'proof-of-work'.

• To date, only less than 5% of SolarCoins have been claimed. If you have a solar power system on your rooftop, irregardless of any existing benefits you are getting, you are eligible to claim SolarCoins. In other words, it's free digital money for producers.

• You can also claim SolarCoins for electricity already produced since 01 January 2010.

The Challenges of SolarCoin

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I admire Nick Gogerty and his team. They have done a lot of heavy lifting to promote cryptocurrencies and blockchain.

In Malaysia, about 12,500 houses are producing and selling solar electricity from their rooftops; generating on average 500 kWh of solar electricity per month and receiving RM 500 per month under the nation's official Feed-In-Tariff scheme.

SolarCoin awards 1 SLR for every 1 MWh (1,000 kWh). That means you may get 1 SLR every two months.

As of today, 1 SLR is tradable at the exchange for US$0.25/SLR.

That's a RM 1.00 reward every two months for a typical home with a solar rooftop.

One might argue that SolarCoins is meant to be kept and held for the long term and the holder might gain a lot of profit when the price appreciates in the exchanges "one day".

I can neither speculate nor predict what might be the price of SLR in the future.

However, if the only reason why people would want to collect SLR is so that they can dispose it off later on. Then it is what it is. Purely an 'air-miles' that technically, it's great to spend at participating outlets or trade it for cryptocurrencies that you do like.

But you would never buy air-miles.
Would you?

I share @willcottrell's opinion in his post.

Without a portfolio of demonstrable and expanding use cases, SolarCoin will be sidelined by other emerging 'utility coins' in what is potentially its biggest market.

• What are your thoughts?
• Would you use SolarCoin?
• What has SolarCoin done well in your opinion?
• How can their model be improved?

Do leave a comment below.

Buzz

Hi, my name is Jason aka @buzz.lightyear. I envision a future where renewable energy is our main source of electricity in this lifetime; reducing the largest contributor of carbon emissions by 90% and bringing our global temperatures back to its natural balance.

I believe that this is no easy task but it is achievable with your support.

I am developing an open blockchain that incentivises both producers and consumers of renewable energy and am looking to collaborate with brilliant minds who share this vision so that we can create a future where it just makes sense to go 100% renewable, visit your local store, buy some latest tech and generate energy for your own use and for others.