Sun Exchange, a blockchain-based solar energy marketplace, has raised $1.6 million in seed financing.

With a United States headquarters in California, Sun Exchange has been leading in the African energy market since 2014. The funding was raised from several strategic partners including Network Society Ventures (New York City), Kalon Venture Partners (Johannesburg, South Africa) and three of the world's leading technology accelerators, BoostVC (San Francisco Bay Area), Techstars (Boulder, Colorado) and Powerhouse (Oakland, California).

Sun Exchange said that the funding will boost its capacity to meet the demand for its pipeline of commercial-scale solar power projects, located in the sunniest regions of the planet.

“At the intersection of the exponentially growing technologies of solar photovoltaics, crowdfunding and blockchain, Sun Exchange is uniquely positioned to become a leading force in the profound transformation that we will witness as we build a global 21st century civilization” added David Orban, Founder and Managing Partner of Network Society Ventures, and member of the Board of Directors of Sun Exchange.

Using blockchain technology, Sun Exchange allows individuals to purchase solar cells in solar projects which are mostly situated in emerging markets that are solar-rich but power-poor. It gives retail customers around the world the chance to lease solar cells bought on their platform to medium to large solar installations in emerging markets. Solar panels are sold by the single solar cell, reducing the cost of solar plant ownership to below $10.

“By breaking down solar panel ownership to a single cell we reduce the cost of going solar by two orders of magnitude and we’re utilizing empty roof space in some of the sunniest cities on the planet, such as Dubai and Johannesburg. To super-charge the process we’ve combined our solar leases with another breakthrough technology - blockchain, namely Bitcoin. Putting the two together empowers anyone to go solar and be part of the global solar energy transformation with just a few taps on a screen,” said Abraham Cambridge, CEO of Sun Exchange.

Sun Exchange leverages blockchain and Bitcoin to increase transparency and reduce the costs of the cross-border transactions, both problems that inhibit the majority of commercial solar projects from accessing traditional funding options. By presenting a simple and accessible opportunity for anyone to join the solar economy, Sun Exchange unlocks the potential for the construction of environmentally sound and socially responsible projects that would otherwise not see the light of day.