Few people would consider the idea of using cryptocurrency to buy clean energy a possibility. But it’s a model that Lagos-based OneWattSolar (OWS) has used to provide Nigerians with access to electricity for more than two years.
The clean energy company allows its customers to pay for solar power using blockchain tokens. Users also do not have to pay for the solar system infrastructure as it is provided through lenders.
After installation, OWS uses technologies such as Artificial Intelligence (AI) and the
Internet of Things (IoT) to facilitate services such as payments and monitoring.
An innovative concept with many layers
Like the typical solar company, OneWattSolar (OWS) supplies and distributes panels to individuals and residential properties in Nigeria. What makes OWS different is the payment system it offers customers.
When using OWS’s clean energy solution, customers do not have to pay for the setup of the solar panel system, which is financed by lenders. Instead, they buy tokens called “green coins,” using naira to pay for the electricity provided. The tokens are built on the blockchain platform, Ethereum.
The solar setup is also equipped with an Internet-enabled router that automatically collects data on energy consumption to ensure that customers pay for exactly what they use – billed monthly on a pay-as-you-go basis. Similarly, it will also alert OWS to any potential problems with the systems in real time.
Using blockchain for its solar solution helps OWS enable transparency between all parties, as well as reduce costs between all parties. “With this system, customers are charged for exactly what they use,” said co-founder and COO, Jubril Adeojo.
In a traditional service that uses fossil fuels, energy usage is almost ₦70 ($0.20) per kilowatt-hour (kWh) in Nigeria. However, the blockchain system costs 50% less ($0.10) compared to diesel, as expensive maintenance costs for generators are avoided.
