Q1. What are Solar Dollars (SD)?
A1. Solar Dollars are currency vouchers that are issued into circulation by a local Electric Power Company in some limited proportion to the annual amount of energy from renewable sources that the company is selling to its customers.
Q2. How are Solar Dollars issued into circulation?
A2. Solar Dollars are spent into circulation by the utility as payment to suppliers and employees who are willing to accept them as partial payment for the goods and services they have rendered to the company.
Q3. Why would suppliers and employees want to accept SD instead of taking all that is owed to them in US dollars. What makes Solar Dollars valuable?
A3. SD are valuable because the company stands ready, willing, and able at all times to accept SD back as payment for the electric services it provides, or for any other payment owed to the company. SDs represent credit obligations of the issuing company that are solidly backed by the energy that it produces and/or sells.….
Technical note
The essence of a currency, its form of manifestation, and methods of transmittal are three separate things. This point must be thoroughly understood by anyone who contemplates the issuance of a currency.
- The essence of a currency is credit, it is the issuer’s i.o.u. or promise to reciprocate, i.e. to provide real value and accept his currency back as payment for whatever products or services he sells.
- A currency can manifest as a paper note, a number in a ledger (written or computerized), a smart card balance, etc.
- It can be transmitted hand to hand or electronically.
Of course, the same concept that has been articulated above for SD issuance could be applied to monetizing ANY locally produced goods or services, like locally grown organic farm produce, that we wish to promote and are in general demand.Beyond Money
Solar Dollars: How to promote renewable energy by providing local liquidity
Thomas H. Greco
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