National Solar Fund Model




As solar has reached grid power parity, the solar energy market is on an edge to emerge. This will change the energy landscape globally: central generation will become decentral generation, large public investment will become multiple small private investment and energy based nation conflicts will occur less. The solar wave is good for the world (less conflicts and cleaner environment) and good for a global financial stability (low performing money in the bank will be partial replaced by daily performing money on the roof) certainly in the end of growth developed nations of the world (that are in a transition from growth of wealth to maintenance of wealth).

An analysis of what would make this transition to solar even more attractive/easier for the decentral investors (households, companies, municipals, corporations, governments, etc) delivered the next items:

1) the need for a trade model with less wide spread between manufacturer pricing and end market pricing (this spread is just to wide, making solar unnecessary more expensive than needed)

2) the need for a trade model with solar panel performance security by testing (the solar panel market is just not that transparent as it should be: who can be trusted is the question: manufacturer can claim any performance: nobody checks these given performance specifications)

3) the need for a trade model with a good product guarantee model (manufacturers come and go, importers come and go, retailers come and go: any current guarantee system is just promises in words with not that much backing of these promises)

To conclude in just one line: there’s no good trade model in solar yet: the solar market mechanism is as young as the solar market itself. A more mature i.e. good organized trade system would boost the demand for solar huge as it would lower the price and take out insecurity facets.

Another facet of solar power / grid power price parity is that governments can chose for waving in the decentral power generation model too. There are some severe advantages to this: a) less heavy power line infrastructure needed, b) fully private funded, c) delivering energy democracy, d) less air pollution (a huge problem in many urban regions) and last but not least: e) stopping the monetary drain of energy fuel import (as solar is fuel free).

Easy instant solarization of nations can be done by governmental parties (governments or central banks) or by the private parties (solar fund investors). Planck Foundation can facilitate both these approaches by a) financial engineering, b) technological support, c) operational facilities, d) international relations and e) leveraging of capital.

The National Solar Fund Model is about the possibility of a private solar fund that leverages invested capital 5 till 25 times (depending on the leverage model chosen) that can be applied to regions and nations, but also to continents or even worldwide. The leveraging is done by the use of Chinese State export finance facilities.

With this leverage ratio it's possible to start a continious flow of containers with solar panels and invertors (but also electric steps, electric bicycles and electric scooters: delivering clean mobility) to any region, nation or continent wanted.

This flow of product containers will be redirect at the demand side of this logistical line to the locations where the immediate demand for that product is. All sales will be done or by payment on delivery/pickup or insured and financed by an external factoring financial. So the liquidity consumption per sales location is just one container per product per location: the rest of the logistical process is covered by external finance.

The capital cycle time is by this system relatively very quick (one week average, two weeks maximal). The margin is (chinese style) low at 5% on cost total (purchase/logistics/interest). The model honours chinese economic thinking which favours transaction total volume before individual product profit margin.

The sales will be done in an online environment. The marketing will be 'cheapest solar energy'. Due the low prices and stock availability the turnover will be huge. The marketing instrument of PR (media exposure) will be used intensive: the product and the formula makes this massive and free marketing possible. The global test environment of specifications will be a huge sales driver and PR facet too.

The 5% margin on total costs (purchase/logistics/interest) will be divided between global operation (1%), equity aka the solar fund (2%) and local operation (2%). Due the combination of a short liquidity consumption (average 1 week) due the designed logistical model, the relative low margin delivers still a very attractive year yield (52 times x 2% = 104%): quite an impressive ROI on equity. The driver of this ROI is not the margin (which is relatively very low), but the number of cycles a year (which is very high). So the designed financial/logistical combination is the driver of this ROI: facilitating very short equity use cycles and repeating them weekly.

SWFs and pensionfunds that want to jump on the solar wagon by this model: research the solar market, research this model and than talk to those in charge. There are funds per nation, per region, per continent and there's a global fund.



(Planck Foundation also a governmental driven model to easy instant solarize nations: click here to see it)



See also International Currency Stability
See also Europe: Diagnosis and Prescription
See also Governmental Funding Turbulence
See also Labour Taxation
See also Money Creation
See also Energy Open Finance Platform
See also Global PV Solar Energy Finance Model
See also EQE/EBS Model Summary Diagram
See also BQE: Bilateral Currency Swaps
See also Gold Backing vs EQE/EBS Backing
See also Secular Stagnation as Denial Term
See also Financial QE vs Productive QE
See also Productive Capitalism Perspectives
See also Emerging Nations - Electricity PPP
See also Emerging Nations - Solar PPP
See also Easy Instant Solarizing Nations
See also Making The Euro More Offensive
See also Structural EU/EC Boat Refugees Solution



See also Global Solar Rollout - Description - Diagram
See also Regional Solar Rollout - Description - Diagram
See also Obama Administration Energy Strategy
See also China As Global Leading Solar Energy Nation
See also Open Finance Platform for Energy Investments
See also Iceland 3.0: Geothermal and Energy as Currency
See also Addressing Economic Decline of the Global West
See also IntraContinental: Continental Rail Schedules
See also Global West Enters Economic Adulthood
See also Global East Driven Globalization 2.0
See also Financial Capitalism vs Productive Capitalism
See also CIRI (China India Russia Iran) Avoids Dollar
See also Global West Gets A Common Currency
See also What Ended Global West Dominance
See also National Economic Development Organizations
See also Desert Investment Economics
See also Ending Global Poverty (By Sea Water Irrigation)



See also Global Deserts Exploration Model
See also WaterTech and MicroCredit Merge
See also Lupin As Soy Replacer
See also Global Seed Cartels Aren't Right
See also Global Food Model: Local to Global
See also Sun / Earth Interactions
See also Telco 3.0 : Telco out of the Cloud
See also National Business Clusters Abroad
See also Scientific Education/Research Funding
See also Iran: National Economic Plan
See also Immigrants and Trade
See also Emerging Nations - Minerals PPP
See also Emerging Nations - Deserts PPP
See also Emerging Nations - Energy PPP
See also National Solar Fund Model
See also Secular Islamic Finance
See also Open Energy Finance Platform

Gijs Graafland / Planck Foundation / Amsterdam / 2015



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