Energy Rewards reduces the cost of finance for renewable energy. It encourages people to reduce energy consumption. It is fair to all participants and costs little to deploy.
Any seller of electricity offers all their customers the right to buy Energy Rewards. The less a customer consumes the greater the number of Rights. Rights are transferrable. When people buy Energy Rewards they use them to pay for their electricity. When a person uses their rewards they receive a discount. The longer the owner of a Reward holds them before redemption. the greater the discount. The value of unused Rewards increases with inflation. We suggest a discount of 10% per annum.
Rewards are transferrable.
Rewards fund the construction of Renewable Energy assets. These could be solar panels, solar farms, wind farms, pumped storage, batteries etc. The renewable energy supplied from these sources is a fixed price of 8 cents per kwh.
Example with Wind Power
For each $1 invested Wind Power generates 1.5kwh per year. At 8 cents per kwh the generator returns the capital cost in 8.33 years. If the funds come from 10% discounted Rewards it will about 12 years to repay the funds. As Wind Generators should last at least 30 years the last 18 years income is almost all profit.
Pumped Storage or Batteries
Assume a pumped storage system or battery has a loss factor of 25%. That means the effective price of electricity from the storage is 6 cents per kwh. This means it will take 11.11 years to repay the funds. At 10% discount this means it will take 16.66 years to repay. Providing the storage system lasts longer than 17 years they will be profitable.