Hello Sun Exchangers,
Since last week’s announcement about the end of the crowdsale era at Sun Exchange, we’ve received numerous questions from you regarding the future of the company and your solar cells. We understand that these changes may bring uncertainty and we want to ensure that you feel informed and supported during this transition. We’ve compiled this blog post to help address some of the most common questions we’ve received, as well as a few others that we anticipate may come up.
Please take a moment to read through it and if you have any further queries, feel free to reach out to us. We also urge you to read last week’s blog post for more information on the transition, including more context on why Sun Exchange is making this change. We deeply appreciate your continued support and patience as we navigate this new chapter together.
Warm regards,
The Sun Exchange Team
Q: What avenues are you exploring for the fleet of existing Sun Exchange solar projects?
A: After analysing several potential scenarios, the avenue we are most actively pursuing and that we believe would offer the best long-term solution for all stakeholders is potentially selling the portfolio of solar projects to a third party buyer. Sun Exchange and the Sun Exchange Bewind Trust (in representation of the solar cell owners) are actively involved in conversations with various institutions that are interested in buying the majority of solar projects in our portfolio, with the exception of projects with significant payment delays and/or legal issues. Our team is working hard to secure the best deal possible. Should the Sun Exchange Bewind Trust decide to proceed with one of these potential buyers we will notify you.
Q: Now that you’re no longer running crowdsales, what happens with my existing solar cells, my earnings and the funds in my wallet?
A: Your projects, solar cells and wallet funds remain secure and will continue to be serviced and maintained by Sun Exchange as usual. You will continue to receive rental payments and have the option to make withdrawals as desired. Additionally, you can track the performance of your projects via your dashboard. Should Sun Exchange move forward with the sale of the solar project portfolio (see answer to question above), we will notify you and advise on next steps.
Q: Why are you looking to sell the solar project portfolio? Can’t Sun Exchange and the Sun Exchange Bewind Trust simply carry on with the administration of the projects?
A: In order to ensure the most beneficial outcome for all stakeholders, particularly solar cell owners, our team has worked long and hard to analyse in depth various scenarios for the future of the Sun Exchange solar project portfolio. We’ve looked closely at what the reality would be of having the Sun Exchange Bewind Trust carry on with the administration of the projects in the long term. Unfortunately, on the heels of the grey listing of South Africa last year, the regulatory landscape shifted significantly. The Trust and other parts of the business involved in administering the solar projects and solar cell owner community now face much more onerous reporting, compliance and tax withholding requirements. These costs would ultimately need to be absorbed into the costs of managing the solar project portfolio and would have a significant impact on solar cell owners’ earnings. With this in mind, we’re confident that selling the solar project portfolio to a third party buyer is the option that would provide the best value to our solar cell owners. In the short to medium term, until a suitable deal is in place with a third party buyer, the Bewind Trust will continue to manage the solar plants on behalf of solar cell owners.
Q: Can any of Sun Exchange’s new corporate funders buy my solar cells?
A: As mentioned above, Sun Exchange and the Sun Exchange Bewind Trust are currently engaged in discussions with various institutions regarding the potential sale of the Sun Exchange portfolio of solar projects. These discussions are ongoing and not yet finalised. Our primary goal is to secure a deal that benefits all stakeholders, particularly our valued Solar Cell Owners. We will notify you if the Sun Exchange Bewind Trust decides to proceed with a transaction.
Q: If Sun Exchange sells the solar project portfolio, will all projects be included in the transaction?
A: No. As mentioned above, projects with significant payment delays and/or legal issues would most likely be excluded from any transaction for the time being. This includes Nhimbe Fresh, Karoo Fresh and uShaka Shopping Mall. Sun Exchange will continue working to rehabilitate the financial standing of these projects and will continue sharing regular status updates with solar cell owners. Since no deal is yet finalised, beyond these three projects, it’s not yet clear which projects would be included or excluded from an initial transaction.
Q: What is the impact on the organisations being solar powered?
A: Currently it’s business as usual for the organisations being solar powered and we will ensure any deal that we decide to pursue results in minimal/no disruption for them. While the ownership of the solar project may change, it’s likely that Sun Exchange will continue to monitor, operate and maintain the solar plants.
Q: As a cell owner, don’t I get a say in whether you can sell my assets?
A: We are working closely with The Sun Exchange Bewind Trust, which represents the community of solar cell owners, on any decisions about the future of the Sun Exchange solar project portfolio.
Q: Can I sell my solar cells to Sun Exchange?
A: No, it is not possible to sell your solar cells to Sun Exchange.
Q: Can you lower your withdrawal fees?
A: Unfortunately, we are unable to lower our withdrawal fees as there are fixed costs associated with processing payments to your Bitcoin wallet or bank account. However, we strive to keep these fees as low as practically possible.
Q: I have a ZAR balance that I am unable to withdraw as I don’t own a South African bank account. What happens to my balance now?
A: Please reach out to us at hello@thesunexchange.com, and we will assist you with your ZAR balance.
Q: Why can’t Sun Exchange members buy into projects alongside corporates?
A: After much analysis it became clear that a hybrid model wouldn’t work. It ultimately comes down to differing contractual and ownership structures between individuals and institutional investors.
The current business model of Sun Exchange and its reliance on a direct asset ownership model precludes it from being able to participate in regular funding structures with corporations and institutions. The Trust is not empowered – regulatorily and otherwise – to purchase shares in other entities and therefore cannot participate in capital funding structures outside of the Trust. As mentioned above, the Trust will also continue to incur increased compliance and regulatory costs which will continue to drag down solar cell owner returns. Conversely, corporations/institutions are not able to participate in the Trust largely due to their own regulatory compliance needs.
