STE-Energy

STE-Holdings' business involves determining the amount solar panels needed to cover the annual operating cost of a project. Once the number of solar panels are determined, an estimate is made of the number of homes and businesses needed to use these solar panels. For the purposes of this business model, the assumption has been made that homes would use 75 percent of the total number of solar panels and the remaining 25 percent would be used by businesses.

For each home, STE-Energy will install 20 solar panels (595-watt panel), one battery storage device and one power generation. Based on the annual power consumption, an estimate will be made of the number of solar panels and battery storage devices and the size of the power generator. Our initial assumption is that, on average, a business will use 200 solar panels.

For example, if a rail project needs 500,000 solar panels, 375,000 solar panels would be allocated to homes and 125,000 solar panels would be allocated to businesses. The 375,000 solar panels is converted to homes by dividing the total number of solar panels allocated to homes by 20 resulting in 18,750 homes. The 125,000 solar panels is converted to businesses by dividing the total number of solar panels allocated to businessess by 200 resulting in 625 businesses.

The last element of the business model is installing the solar package on each home and business. We will install the solar package after 250,000 solar panels have been committed to through the signing of a power purchase agreement. An InterGovernmental Agreement (IGA) will be executed by STE-Holdings and one or more local governments. The agency created by the IGA will issue bonds.

The income for these 250,000 solar panels will be place in a Reserve Fund. This fund will be used to select the final alignment, acquire the right-of-way, and finalized the constucting drawings.
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