Farming Money
SELLING SUNSHINE
According to this article, Australia’s lockdown led to a surge in roof-top solar panel installations, possibly making 2020 a record breaking year for Australian green power growth. It is believed that more people working at home, together wih reduced transport costs, meaning more money for home improvements, and pandemic low interest rates, were also factors. Australia now has 2.4 million rooftop solar systems, generating 9.7 gigawatts, or 9.7 trillion watts.
Putting this another way, Australian rooftops do about one quarter of what Eskom achieves.
Solar panel prices have dropped nine-fold in a decade. What is the pay-back period now? About ten years ago, it was at least 20 years before recoupment. Nine fold is roughly 11% per annum reduction in cost, so it must surely have reduced the recoupment period to ten years or less.
Karoo “Mining”
Imagine I have spare money lying around. I could use it to install a solar array. One US$ will produce 1Kw of power. Say I spend it on a solar farm. If I can’t sell my electricity to the grid, I can sell wherever I please. There is a solar farm near Burgersdorp that sells is power to Egypt. It’s unthinkable that I would not find someone to sell my power to, but let’s say things change and I can’t find a buyer.
As a side effect of the pandemic, is it not possible that firms may consider sending people to the peaceful, distraction-free Karoo to complete projects needing applicaton, concentration and no stress?
Who would not want to leave behind a deteriorating city (aren’t they all) to look at the beautiful Karoo, breathe clean air, eat fresh food, and take walks and rides, working peacefully with a reliable source of electricity, courtesy of the Karoo sun!
If that isn’t a market, what about a cottage full of crypto-minng rigs? An Australian rancher was in the news recently for his plan to build a 1MW solar farm, dedicated solely to mining Bitcoins. It’s as good a business plan as any.
17% of SA citizens interviewed said they used or owned cryptocurrency - third after Nigeria (32%) and Vietnam (21%).
All currencies are risky, but with Ethereum miners realising $800k in one hour recently, who knows? It could turn out a winner, Lending new meaning to the phrase “making money”!