Solar Platform Cooperative

Climate change has imposed a great challenge on us to achieve sustainable economic development with social and economic opportunities for vulnerable families, deepening Energy Poverty.

This is generated when families cannot access modern energy services, making it difficult to adapt to this crisis and reducing their resilience.

The pandemic is bringing massive economic disruption, escalating job insecurity and unemployment. 

Trough a Solar Crypto-Cooperative Platform, an "AirBnb for Solar" that connects local Solar SME/FreelanceTechnicians with families that wants a solar system.  

The solar energy service is offered with a PAY AS YOU GO financial model,  backed by a IoT controller that activate/deactivate the service and a software,families can pay in monthly small amounts. 

As a Cooperative, families and SME/Technicians can be owners of the business sharing it's benefits. Blockchain technology allows decentralized and scalable ownership. 

Solar generates savings, does not require initial investment.Reduces carbon footprint.Data generates data for credit scores. 

In the world 1.3 billion people live in energy poverty, another 1 billion people have extremely unreliable access to energy services such as electricity, light, sanitary hot water or heating. Without energy, these families turn to dangerous, costly and unhealthy alternatives, such as candles for lighting, lead-acid batteries for torches, diesel for generators, charcoal for cooking or PLG for hot water.

For most people living in energy poverty, lack of access to financing options—loans, leasing, payment mechanisms, and so on—is a primary barrier to adopting modern solar solutions.

Solar can help to solve this problem but unfortunately off grid solar market is super-fragmented and Solar SME/Technicians/Freelancers are not well developed,do not have access to training,technology,supporting networks or updated skills.

They target some of the most underserved customers around the world, with almost 75% of member customers earning less than US$3.20 per person/day.Since they cannot finance their potential clients they can never reach full potential.

The majority of SMEs are informal enterprises, which provide livelihoods for 60% of the world’s workers. Informal employment is typically characterized by low pay, poor working conditions and a lack of social security.

On top, Covid is erasing 195 million jobs in just a few months.

Through a Blockchain-based “Solar Cooperative Platform”, Endurance enables an autonomous organization that engages the community, decentralized, joint and democratic, in tune with traditional cooperative guidelines.

This platform allows families to purchase solar technology, access to basic services, information, security, better education and better health. Offering a Leasing-type solar energy service, which includes solar equipment, an IoT controller, installation and after sales.

 The client pays an initial amount to join the crypto cooperative, chooses the service and then makes monthly payments that allow solar energy to be supplied. With the controller, this service can be remotely activated or deactivated in case of payment / non-payment.

 Information can be registered on the platform, generating a portfolio of clients whose data is processed through software, generating alternative credit rankings and other evaluation tools.

Thanks to Blockchain technology, customers, sales agents, installers and stakeholders can work in this company, own this company, sharing its benefits and cooperating to solve a multidimensional problem.

 This solution is disruptive, taking into account culture and clean energy, adapting to the socioeconomic reality of families, by providing access to cutting-edge mobile payment and financing technology.

Clients are people and families who live mostly in rural, semi-rural or  any areas of cities, who might be: either disconnected from the electricity grid or have intermittent access to it, do not have access to sanitary hot water and/or are experiencing 1 or more of the 3 dimension of Energy Poverty (Access, Quality, Equality).

They usually correspond to the base segments of the pyramid, their monthly income is the lowest among the population. Also, their incomes often have large fluctuations throughout the year, directly related to the economic activity they do. They are families in a state of vulnerability, which usually are not banked or have much difficulty accessing consumer loans, when they do the cost of credit is very high because they are classified as high credit risk. Solar SMEs and middle qualified Technicians that lack job opportunities, mostly from the same segments mentioned above.

Endurance engage with user trough a local sales agent network, this door to door local entrepreneurs act as ambassadors of solar energy,who advice families on the best alternatives of equipment and financial plans. But also as repositories of information back to the organization on needs and demands of users, creating network effects.

Platform cooperatives offer an alternative to Airbnb or Uber-type platforms, but integrating cooperative principles such as ownership and democratic governance by introducing economic equity and training.

They offer higher quality jobs, productivity benefits, greater resilience, lower turnover, fair pay and opportunity to benefit from the cooperative ecosystem. Control over the direction of the business remains with owners.

The offer of solar energy services based on a PAYGO financial model with remote control,scales access to these solutions,especially for the most vulnerable by offering a comprehensive service with guarantee and post-sale, with better adherence in the community in the long term

Integrated solar PAYGO companies such as dlight or Bboxx offer a pipeline business model were they integrate all functions (producing, promoting and financing solar devices) and using traditional standard freelance sales agents with lot of churn rate, extracting lots of value in the process. The owner is the capital.  Distribution PAYGO solar SME finance their customers but do not produce products, mostly distribute or represent PAYGO integrated company in local areas. They lack the scale and resources needed to survive and reach more people.

Endurance Electric solution is based on a business shared between users, suppliers and the community through a CryptoPlatform that is used by the community to connect and organize the offer of solar services, generating access to basic services in better conditions.

Integrate stakeholders in a digital and interconnected space.

Blockchain technology enables decentralized and scalable ownership.

The solar service generates savings, does not require an initial investment and includes maintenance.

Reduces carbon footprint.

Generate data for payment analysis.

The control technology allows to activate / deactivate the equipment.

 It is disruptive because it takes into account the culture and preference for clean energy and the socioeconomic reality of families, by giving access to cutting-edge financing technology, despite not having a demonstrable credit capacity.

The cooperative solar platform model is unique in the world, but it integrates a PAYGO Solar model that is very successful in other countries.

The business model relies in the integration and new applications of 3 main technologies.

First using solar technology to produce energy, we don't build these devices rather search for the right ones in the market. 

Second is IoT controllers to activate or deactivate the equipments remotely with software to administrate and manage users.

Third and most relevant is the application of Blockchain technology in a Cooperative business model, allowing digital, descentralizad ownership and democratic/sociocracy  administration of the autonomus organization. 

Technology that enables PAYGO models for solar services are rapidly growing and being adopted in different countries, and expanding to not just solar devices. Examples: https://www.bboxx.co.uk/  https://zolaelectric.com/ 

PAYGO whitepaper from Mastercard: https://newsroom.mastercard.com/wp-content/uploads/2018/05/180652_MC_PAYG_Whitepp_9.pdf

Blockchain technology for Platform Cooperatives is rather new application that is growing super-fast, some examples: https://platform.coop/ 

https://www.fastcompany.com/40575728/worker-owned-co-ops-are-coming-for-the-digital-gig-economy

https://www.researchgate.net/publication/331930367_Fostering_Worker_Cooperatives_with_Blockchain_Technology_Lessons_from_the_Colony_Project

https://open.coop/2018/06/04/decentralized-co-operation-scale/

https://www.wired.com/story/when-workers-control-gig-economy/

https://media.nesta.org.uk/documents/Nesta_Platform_Report_AW_v4_3.pdf

Energy poverty seeks to measure the access of households to sufficient energy to cover the fundamental needs of its members, so that they are able to sustain their human and economic development, which impacts on the well-being of people ( RedPE, 2019).

Energy poverty is analyzed around three dimensions: access, quality and equity. The access dimension refers to the geographical, technological and infrastructure barriers, the quality dimension considers the conditions in which energy is accessed and the way in which it is made,the dimension of equity, refers to the economic conditions that limit the possibilities of families to have energy sources (RedPE, 2019).

Access to clean,affordable and sustainable energy to improve energy services is a necessary condition to improve the quality of life of households. In relation to this, the main causes are low income and bad energy consumption habits, associated with a lack of information and energy education.

The limitations to access clean and affordable energy translate into the deterioration of people's living conditions: less social inclusion and fewer options to sustain the development of its members (RedPE, 2019). This is expressed in direct and indirect effects.

These families generally do not have access to financing alternatives through financial entities, and when they decide and can invest in improving the quality of life of their families, they must pay a significant part of the family income for an investment in a product and service.  The distribution and supply offer to which they have access is of low quality when compared to more developed areas.

The intervention is based on the energy ladder concept, which enables families to finance the purchase of solar technology through additional savings and income, while gaining access to modern basic services, information, security, better education and better health.

Components: Solar technologies, Microfinance, Cooperation and Ownership, Training.

It generates 3 impacts:
Social: generates access to basic services through Renewable Energies, improving quality of life.
Economical: solar energy allows savings of up to 90% per month.
Environmental: reduces CO2 emissions, enhancing the fight against climate change. 

Currently: 1.800 people

In one year: 10.000

5 years: 500.000

- Economic impact: by allowing families to save money by using renewable energy.

- Social impact by giving access to clean energy.

- Environment impact: by generating CO2 offset.

- Allowing new and good quality jobs and micro entrepreneurship opportunities.

Scaling by implementing autonomus of local cooperative descentralized chapters in new areas.

The cooperative platform, being an autonomous organization, facilitates the generation of transfer and capacities so that each local chapter continues to function, empowering local entrepreneurship so that they continue promoting and offering the service.

The main risks today are: permanence of movement restrictions and social distancing due to the pandemic, which makes it especially difficult to work in the field with communities. To deal with this, it would imply digitizing and promoting online communication at first. Define and apply health safety protocols when generating facilities and invest in necessary care implements.

Other potential risks are related to Blockchain technology development and ownership, so appropriate prior research is important as well as working with experts. Adoption risk, that is, that the beneficiaries do not consider the proposal attractive or that the solar systems used are different than in other previous areas, to control this, the validation and piloting stages are key to generate learning prior to the stage of scalability.

Legal issues to cooperative organizations that might change between countries.  Access to third party financing.

By generating partnerships to solve pain point and to help the organization to adapt to local culture.

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The team is made up of 3 full-time professionals in charge of the operation with clients, commercial development, generation of alliances, supervision of technological development and innovation, and search for financing, among other responsibilities.
Complementing it is a Part-Time team of 7 people responsible for sales, administration, research and development related to solar energy, impact generation and B2G alliances, social research, as well as circular economy, search for international funds, models of business and financial innovation. 

For this project Endurance will seek to strengthen its team with people related to platform technology, Blockchain, Cooperative models and B2B businesses.

Endurance multidisciplinary team is composed of business entrepreneurs, PHd. in Mechanics and solar, MBA, Psychologist, Ms. in Development among other areas. With passion to overcome challenges and to deliver impact to society.

The organization has shown sustained progress in achieving its triple impact objectives, strengthening execution capabilities, operational development and team. As of today Endurance has projects managed locally and internationally, with important networks related to social innovation outside of Chile, validating its experience and potential. Since its inception, it has reinforced innovation methodologies and the design of models and services, with a clear focus on the vulnerable population in a situation of Energy Poverty, where their true strengths reside. Generating commercial traction and receiving important local and international recognitions.

Universidad de Chile: to test and validate solar energy products with PAYGO systems.

ExpoLive Global Innovator from ExpoDubai 2020: using resources and capital to pilot the solution.

StartUp Chile: by using resources to validate and build technology.

Latamtech: advisory on Blockchain technology.

Platform Coop: on defining platform cooperative model

The strategy is based on developing a for-profit business model so that in the long term it does not depend on subsidies or donations from third parties.

The Cooperative-PAYGO model considers that the family buys participation fees for an initial and then contracts a 48-month leasing with a monthly payment. The estimated payback is 2 years, with significant margins. 

As platform that connect clients with producers other income sources are available: fee for every transaction between client and technician, fee to financial institution for every leasing provided.

By offering a service directly to users trough a financial cooperative model.

This model ensures monthly income, with equipment as company assets.To achieve sustainability must improve: Data management:identify households with potential for profitability and good payment behavior,using algorithms and public information. Sales/After Sales service:through promoters that allow to generate bonds with local leaders, who close contracts,inspections and after-sales. Payment points:in partnership with financial operators,today we have more than 25,000 points of payments from BancoEstado. Financing:PAYGO adapts to local reality by minimizing the rate of non-payment maintaining high fidelity. Technology:reliable hardware,in addition to software that generates valuable information and transactions in real time for making decisions. Alliances and Financing: with other companies operating in the area or in new potential markets.To generate scalability it is key to ensure sustainable sources of financing, either by debt or capital, associated with triple impact investment.

We are applying to be part of an energetic network of passionate people, entrepreneurs and organization that are focusing on impacting the world. People and professionals that might support us to define better our technology and business model and to connect and reach new partnerships opportunities that allow us to scale our reach and impact.

Business Model: validate and design better the business model.

Technology: undrestand possibilities specially in Blockchain technology.

Product Distribution: create partnerships to take the service to other countries, specifically to African countries were Energy poverty is ahuge problem.

Solve members already working in energy field and in digital economy. That would help us to validate the business model and to connect with business opportunities.

Organization related to digital economy.

Cooperative organizations.

Ministry of Human Resource Development, Govt. of India to understand labor opportunities in India,, since renewable energy is an important key strategic.

Our solution points directly on how to build the skills and resources needed to access well-paying jobs in a changing marketplace and environment. We have been doing work on the field on inclusive entrepreneurship for 3 years already and are ready to move another step further.

If win this prize we will use it to build a better dream team.