Benefits

to the planet

Hire-purchase plan

clr_house

Emissions avoided

0

kgCO2

Equivalent trees planted

0

Liters of water saved

0

energy saver

floating

20-Year plan

Power units value

0

USD

Total amount payable

0

USD

Annual components

Fixed

0

USD

Variable

*

0

USD

Total

0

USD

dollars

years

  • The calculator is only a demonstration of return based on a Hire-Purchase agreement of PV panels sold by World Global Network at $1,200. The calculation may vary if the cost of the panels changes.
  • * The value of the variable component is not guaranteed and may vary as set out in Clause 5.2.
  • View the hire-purchase contract

The value of emissions avoided, water saved and equivalent number of trees planted are calculated based on the considerations of the average plants’ lives of 25 years.
1. How does Power Clouds work?
POWER CLOUDS Pte. Ltd., is a company that promotes the spread of solar power plants in the world. It is a very simple and genial concept, a new way to build large scale solar plants all around the world, involving in the projects simple people who want to contribute to the plants’ construction and, at the same time, receive a financial benefit. It’s very simple: Power Clouds designs and builds solar energy power plants. You contribute hiring to Power Clouds one or more Photovoltaic Panels, and altogether, we provide green energy to the world. Power Clouds will get paid by the local energy operators for the energy produced and in addition to it, will receive government incentives. You will receive, from Power Clouds, a monthly payment for the hire-purchase agreement that you subscribe to for hiring the PV panels, sharing a great profit with Power Clouds.

2. What is a Power Unit?
A Power Unit is a photovoltaic panel of 240 Watts of power, installed, configured and connected to the distribution network of the local energy operator. The panel is part of an entire central photovoltaic power station. The cost of the PV panels constitutes the majority of the total cost of a power plant.

3. Where do I get Photovoltaic Panels to hire to Power Clouds?
Power Clouds has an agreement with World Global Network Pte. Ltd., to supply high technology and high performance and quality Photovoltaic Panels to people who want to participate in the Power Clouds project. However, all of Power Clouds participants have no obligation to purchase a PV panel from World Global Network, but they are free to hire to Power Clouds any PV panels that are compliant with the technical and quality specifications requested by Power Clouds.

4. What is a Hire-Purchase term?
The Power Clouds project is based on the contribution of each single person that is able to hire to Power Clouds, Photovoltaic panels. The PV panels will be provided to Power Clouds under Hire-Purchase terms, that is a method of buying goods through making installment payments over time. The term hire-purchase originated in the U.K., and is similar to what are called “rent-to-own” arrangements in the United States. Under a hire-purchase contract, Power Clouds is leasing the PV panels and does not obtain ownership until the full amount of the contract is paid. So, Power Clouds becomes the PV panel’s owner only when terms of the hire-purchase agreement for each panel is due.

5. How are the Hire-Purchase installments calculated?
In the hire-purchase terms and conditions and on the Calculator on the web site, there is a proposed hire-purchase plan based on the amount of the PV panels hired, the length of the hiring period and the installment amount. In the installment amount, there are two components, the fixed component and the variable component. The “fixed component” is the total value of the PV Panels divided by the number of years of the plan. The “variable component” is the amount of money received from the PV panel owner as profit on the hire-purchase terms. This variable amount, as stated in the hire-purchase terms and conditions, may vary depending on the value of the energy paid by the energy operators to Power Clouds or any variation on the terms of the government incentives that may compromise the profitability of Power Clouds and the capacity to pay the profit to the PV panel’s owner as agreed in the plan.

6. What happens when the Hire-Purchase period has ended?
At the end of the hire-purchase period (20 years), Power Clouds becomes the final owner of the PV panels, and the participant has received a number of installments for the total value of the initial cost of the PV panels plus the profit. Using the online calculator or consulting the table in the hire-purchase agreement, you can calculate how much profit you can obtain from the plan.

7. Can you explain step-by-step how the calculator works?
On the calculator, first of all, you can simulate all the benefits in terms of environments, (social and economic) based on the number of Power Units you want to purchase.
First, let’s choose the number of Power Units you want to evaluate (1 to 10, but could be more. This is only a demonstration).
At this point, you will see a table with the following indications:

- Hire Period: the length in years of the hire-purchase agreement.
- Initial Payment: is the value of a PV panels purchased through World Global Network.
- Installment payment per year: is the installment amount calculated on a yearly basis.

This amount will be then divided in 12 months for a monthly settlement.
- Fixed Component: is the value of the PV panels divided by the years of length of the hire-purchase plan (20 years).
- Variable Component: is the yearly profit generated by the hire of the Cloud’s panel and it represents your net return.
- Total: is the sum of the fixed component and the variable component and it represents your gross return.
- Total Amount Payable: is the total amount of money you will receive after all installments have been paid and it represents your total gross return.
- Final Purchase Value of the Power Units: is the purchase value of the PV panel after all installments have been paid to the owner.

8. How can I get a return on my investment?
According to the repayment plan, the return is given within a specific time frame, as shown in the calculator. Another option is the sale or transfer of the hire-purchase contract to another private Power Unit individual or to exercise the “Buy-Back” option.

- After the first 12 months following the Power Unit purchase and the Hire of the Panels to Power Clouds, the client can ask to exercise the option “buy back.” interrupting the Hire-Purchase agreement with Power-Clouds earlier than its due terms, and asking to the company to purchase the Panels before the terms of the end of the plan, the exercise of such option will guaranty the return of the investment in the Panels but will eliminate the benefit in terms of returns agreed in the contract. The repurchase of the panel will be at net value from the amount of installment already paid to the user less transportation cost and administrative costs.
- Transference of the hire-purchase contract to another individual, through a private Power Clouds trading platform (available after 12 months with respect to the project launch). Users will receive the hire-purchase agreement and the PV panels will continue the original plan chosen by the panel’s first owner.

Technical-Environmental Report

The production of energy from renewable sources, particularly photovoltaic, leads to a number of environmental benefits for the planet. Power Clouds decided to show and quantify (in a clear and direct manner) these positive impacts connecting electric energy production in the following 3 parameters:

  1. CO2 emissions avoided
  2. Equivalent trees planted
  3. Water saved

To determine this, it was necessary to estimate the conversion factors between the Power Unit’s annual production and these environmental parameters listed in the calculator.

Annual Power Unit Production

To derive a series of specific parameters of the plant to which it refers, in particular:

  1. Irradiance (I): Specifies the site where the plant is located. It represents the average annual value of solar energy impacting the earth per square meter of surface.
  2. Conversion efficiency (ec): Specifies the photovoltaic panels used in the system. It represents the amount of solar energy (irradiance) which is transformed into electricity through the photovoltaic effect triggered by the silicon modules panel. For panels used, this efficiency is 13%.

Starting from these values and multiplying them, it is possible to calculate the specific production Ps (per unit area) of the plant which, for example, in the case of the Scornicesti Solar Farm, is equal to 216 kWh/m2 per year.

The panel’s effective surface area (S), in terms of area of photovoltaic cells, is equal to 1.63 m2. From here, we derive the annual production of Pu from a single Power Unit that, again in the case of Scornicesti, is reported to be 0,350 MWh / y. This value represents the energy produced under optimal conditions from a single Power Unit, in one year of operation, and constitutes the basis of calculation of successive conversions.

Environmental parameter no. 1: CO2 emissions avoided

For the determination of the conversion factor between energy produced and carbon dioxide (CO2) emitted, must refer to the values determined by the International Energy Agency (2012) [3]. These values refer to the emission generated by the production of a KWh of energy, in terms of weighted average of the different sources used for the production (% of use). The report is obtained a value of 502 gCO2/kWh.

Environmental Parameter no. 2: Trees Planted

An environmental parameter, figuratively easy to understand, is represented by the equivalency between the energy produced and the number of trees planted. To perform this step, we must first consider the amount of CO2 avoided, since each tree leads to reduced atmospheric carbon dioxide of an estimated value of 0.039 t CO2 / y [2] (for medium growth coniferous trees planted in an urban setting, not densely planted, and allowed to grow for 10 years). From this we achieve the conversion coefficient equal to 12.8 trees per kWh of energy produced by Power Clouds’ photovoltaic plants (4.48 trees per Power Unit).

Environmental Parameter no. 3: Water Saved

Producing energy from renewable sources can also clearly allow water savings compared to energy production with traditional sources. Water, in fact, is used in different phases of the production process in conventional power plants, while thanks to the use of photovoltaic technology, significant water savings are achieved. To be able to estimate the amount of water saved, reference is made to what is reported in a study on the analysis of the life cycle of water for photovoltaics, which correlates to energy production with a savings of 1.33 m3/MWh [3 ].

In Summary

The following table summarizes the conversion factors used with reference to 1 kWh of energy produced by Power Clouds plants, and also in reference to a single Power Unit. Lastly for this, it distinguishes between the annual value and the estimate of plant’s entire life (considered in a precautionary manner, to 25 years).

Biography

[1] International Energy Agency (IEA), 2012. CO2 Emissions from Fuel Combustion − Highlights. CO2 emissions per kWh from electricity and heat generation. Year 2010. (Available at: http://www.iea.org/co2highlights/co2highlights.pdf).
[2] Energy Information Administration (EIA), 1998. Method for Calculating Carbon Sequestration by Trees in Urban and Suburban Settings. United States Department of Energy. (Available at: ftp://ftp.eia.doe.gov/pub/oiaf/1605/cdrom/pdf/sequester.pdf)
[3] Sinha P., Meader, A., de Wild-Scholten M., 2013. Life Cycle Water Usage in CdTe Photovoltaics. Photovoltaics, IEEE Journal of. Volume: 3 , Issue: 1 Page(s): 429 − 432 (Available at: http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=6313879&url=http%3A%2F%2Fieeexplore.ieee.org%2Fiel5%2F5503869%2F6387608%2F06313879.pdf%3Farnumber%3D6313879)
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