What if paying your electricity bill also made you an investor? What if your utility provider gave you not just energy, but equity, voice, and impact? As energy companies look to expand and decentralize, citizen participation through blockchain and tokenization is no longer a futuristic idea - it’s quietly becoming reality.

Tokenizing Solar Projects: Turning Big Assets into Everyday Opportunities

Traditionally, investing in large-scale solar projects was the domain of institutional investors. Tokenization is changing that. By converting ownership rights of physical solar installations into digital tokens on a blockchain, companies like Italy’s Enel are allowing individuals to buy fractional ownership in solar farms. These tokens represent a real stake in the energy produced and often come with tangible benefits:

• Discounted Energy Prices: Token holders can offset their electricity bills with energy generated from their share of the solar asset, sometimes for a fixed period or as long as they hold the token.

• Passive Income: Some models allow token holders to earn a share of the revenue generated by the project, creating a new form of passive, green income.

• Democratized Access: Tokenization lowers the investment threshold, enabling broader participation from retail investors and communities, not just financial giants.

Can You Get Discounted Energy at Home from a Project in Another State?

Here’s a question: If you buy a token for a solar project in a different state, can you enjoy the benefits at your own home?

The Technology Says Yes:

Blockchain and smart contracts make it possible to track your share and apply discounts or credits to your energy bill, regardless of where the project is located.

“You can live in a high-rise and offset with partial ownership of a solar panel in a field someplace else.”

Staci Warden, CEO, Algorand Foundation

The Reality?

Regulatory barriers and utility cooperation are still catching up. In some regions, pilot projects are underway, but widespread adoption will depend on policy changes and grid integration.

Governance: Should Citizens Have a Say?

Governance tokens empower citizens to actively participate in decision-making for energy projects. Unlike traditional investments, where investors are passive, governance tokens grant holders voting rights on issues such as:

• Project selection and funding priorities

• Pricing models and bill discount structures

• Integration of new technologies or community initiatives

This decentralized governance model has several advantages:

• Transparency and Accountability: Decisions are recorded on-chain, promoting trust and reducing the risk of centralized abuse.

• Community Engagement: Token holders become active participants, shaping the direction of energy projects and ensuring that developments align with community needs.

• Alignment of Interests: Governance tokens align the interests of investors, consumers, and developers, fostering a sense of ownership and responsibility.

Challenges remain, such as ensuring broad participation, preventing concentration of voting power, and maintaining efficient decision-making. Nonetheless, the model is a powerful tool for democratizing the energy sector.

Rethinking ESG: More Than Just Carbon Credits

Most ESG (Environmental, Social, and Governance) investments focus on the “E”-like measuring tons of CO₂ avoided. But what about the “S” and “G”?

Social:

By involving citizens in decision-making, projects can better address community needs, promote social equity, and build local support.

Governance:

Transparent, blockchain-based voting ensures decisions are fair and accountable.

Final Thoughts

Tokenization, combined with participatory governance, can create a citizen-centric utility model where every bill paid is a vote for a cleaner, fairer energy future.

The question is no longer if this is possible, but how fast we can scale it.

What Next?

If the idea of owning clean energy, having a voice in project decisions, and contributing to a more democratic energy future resonates with you - there are already platforms making this possible.

You can learn more and explore ongoing projects at penomo.com.

If you have questions or thoughts, feel free to reach out at hello@penomo.io - we’re always open to a conversation!