SolarCoin pays you for solar power

On the back of the success of the decentralised internet currency BitCoin, the SolarCoin foundation have created the SolarCoin. Much like BitCoin, SolorCoins can be "mined", creating coins by solving complex cryptographic puzzles, but they can also be awarded for energy generated via solar arrays.

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get additional income selling for your solar power back to the grid

People with solar arrays on their houses or businesses currently earn via renewable energy certificates or Feed-in-Tarrifs. However with SolarCoin there is now an additional source of income. The foundation awards one SolarCoin per Mega Watt hour generated, and verified by the local energy supplier.

At the moment SolarCoins are worthless, as they are not traded. But Nick Gogerty, the SolarCoin foundation spokesperson, is aiming or a price of $20 to $30 per SolarCoin, effectively providing a crowd-funded incentive to invest in solar power.

The idea for creating an energy backed currency is derived from an academic paper "DeKo: An Electricity-Backed Currency Proposal" which was published in 2011. However until the rise of BitCoin the proposal was stymied by the need of support from a central bank.

BitCoin has been criticised for a its energy footprint, as it requires large amount of processing power to generate new BitCoins. However SolarCoin says that it is 50 times more efficient as its algorithm allows coins to be mined faster, as well as offsetting generation via the renewable energy generated.

Will early adopters take to this new currency? How long will it take until the coins achieve their target value? These questions can only be answered in time. So watch this space.

For more information on the SolarCoin Foundation visit their site solarcoin.org