Sun Exchange: making powerful connections
South African startup Sun Exchange is founded on a simple
and effective idea. First, they and their partners identify
suitable places for small-scale solar installations, notably
locations that receive a lot of sun but would benefit from a
cheap and regular power supply. This might be a small
village. Then micro investors are invited to buy a stake, and
the necessary funds are raised. When the installation is
completed, the villagers get affordable power and the
investors get a steady return.
Given that sunshine is one of Africa’s natural resources,
while regular electricity supply is not, it’s a great match., Sun
Exchange has attracted more than 14,000 members in 90
countries. Its potential was recognized this year when
Alphabet, a US hedge fund, made a $500,000 seed
investment. Through its micro-leasing platform, it has
organized funding for six operational solar projects in South
Africa, benefitting schools, wildlife protection parks and
small businesses.
Future expansions include a partnership with the United
Nations Development Program to work on blockchain-based
finance for solar power in Moldova and a partnership with
Power hive, backed by actor Leonardo DiCaprio, that aims to
use the Sun Exchange platform to bring electricity to as many
as 175,000 people in Kenya who currently have none.