Faq

You are not investing in XCEC Energies, you are buying stock in renewable energy portfolios managed by XCEC Energies. When you invest in a portfolio you are buying equity shares in a Delaware based entity. This entity is solely designed to own renewable energy projects associated with the portfolio. As the projects become operational, they produce electricity, collect revenue, and pay operating expenses. Each month 100% of the remaining cash is sent back to the entity and distributed to the shareholders pro-rata. As investment managers, XCEC Energies will periodically use various financial tools to maximize returns while minimizing risk to our investors. XCEC Energies can add new projects to portfolios over time or sell existing projects if market conditions change. An investment today, entitles you to the future cash flows of all the active projects associated with the portfolio as well as any new projects XCEC Energies may add in the future.

Each portfolio is owned by a crowd of professional and unaccredited investors who have purchased stock through the platform. Thus, every investor has a percentage ownership of that portfolio. As each project within the portfolio produces electricity and collects revenue, that revenue is first used to pay for the project’s operating expenses and, occasionally, a reserve to ensure that future operating expenses will be reliably paid. All remaining revenue is distributed to investors based on their pro rata ownership of the portfolio. Over time, as investors collect dividends, they recover their initial investment and then start enjoying pure profit. In order to equalize the returns of all investors regardless of when they invest, we update each portfolio’s share price monthly. In general, throughout a project’s lifespan, the share price gradually decreases in order to make up for the shorter period of dividends a later investor would realize. Conversely, the share price for a project prior to its first dividend will gradually increase up until the date of the first dividend so that early investors get equalized for the time they were invested and receiving no dividends.

XCEX Energies accepts investments from both accredited and non-accredited individuals.

XCEX Energies utilizes a fee and carry fee structure. We assess a monthly management fee on dividends paid as well as a fee on any returns above a certain benchmark. XCEX Energies charges a 1-2% management fee on dividends as well as a 20-30% carried interest fee depending on the investment. If there isn’t a dividend paid out in any particular month we would not charge any fees for that month. It is important to note that all returns expressed on the XCEX Energies platform, both realized and projected, are net of all fees. For specific information on fee schedules for any particular investment please see the investments Offering Circular.

Renewable energy projects cost a lot to construct, but very little to operate. We pool together investments to build each project then collect revenue for years to come as the projects produce electricity, which is sold under long-term contracts. Renewable energy plants don’t have fuel costs, so their biggest operating expenses are rent paid to the owner of the land, technical maintenance, debt service (if applicable), taxes and administration. It’s like buying a hotel – only every room is rented for 20 years before breaking ground on construction.