Subscribe to enjoy similar stories. Last week, Nithin Kamath tweeted about SundayGrids, a company offering solar energy access without the need for rooftop panels. The concept is simple: For those living in apartments without enough space to install solar panels, SundayGrids helps you buy solar panels that are put up elsewhere.
The electricity generated by these offsite panels is credited against your electricity bill. It’s a novel solution that makes users feel like they have solar installed at their place even if they don't. What’s more, they don’t have to invest the entire capital, just the amount they can afford.
The platform will inform about the approximate credit users will get each month to offset it against their bill. It’s like owning a fraction of a large solar power system. It's a win-win for climate enthusiasts who want to go solar but lack the space and for industries that want to go solar but don't have the necessary capital.
But there is a catch. When one opens the SundayGrids website, a clause stated at the outset catches your attention– ‘offsets at tax-free 11.5% XIRR’. XIRR, or external, internal rate of return, is a metric used to calculate the return on investment.
It also has a ‘tax-free’ prefix that would imply that there’s no tax to be paid on the 11.5% return you get. This could give prospective customers the impression that it’s an alternative investment option. But it's not.
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