FINANCING OPTIONS FOR SOLAR ROOFTOP OPEX/PPA/BOOT/LEASE MODEL

OPEX/PPA/BOOT/LEASE model Solar all are the name of same business model which are popular with a different name is extremely attractive for consumers without having to bear all the financial, technical and operation costs of installation of a solar power plant, the ultimate goal of all models is to provide a solar rooftop plant on PPA or LEASE BASIS means buyer / off-taker / Lessee will choose to pay the Lessor the Lease/ Rentals to the “Investor”/ Lessor of the “project” on monthly basis as per the terms of TERMS SHEET (LOI) at the initial stage after the “Conversation” as the TERMS SHEET (LOI) shall convert into an “Agreement” (LEASE OR DP ).

OPEX Model Solar is a highly popular model in the USA for a solar power plant business.This modelisincreasingly gaining ground among various end consumers in India.From a power consumer’s point of view, OPEX Model Solar is a third-party financing model. In this type of model, the consumer does not have to incur upfront capital costs. He only provide the space for setting up the solar panels, and the solar company bears the entire capital costs of developing and installing the onsite solar plant, along with operating the facility once complete.

The two stakeholders under this model – consumer and developer – sign a long-term power purchase agreement (PPA) for an agreed tenure, tariff and escalations. The customer makes a monthly payment for the solar units consumed at a predetermined discounted rate per unit. Length of agreement varies from 10-25 years. The discounts offered are generally around 20% of the existing electricity bill. However, the actual discount depends on case to case basis.

One of the most significant benefits for a consumer taking the OPEX Model Solar route is that he can add solar energy to his household or business without any upfront investment. This model is also called the Renewable Energy Service Company (RESCO) model.

Highlights of OPEX Model Solar – Operating Expenditure Model

• You enjoy all the benefits of solar energy without any set-up costs.
• The plant is owned and operated by the solar company.
• The installer bears the entire project’s capital costs incurred in installing a rooftop system upfront.
• All other liabilities like system design, paperwork, permissions, knowledge exchange, and operations and maintenance of the system for the duration of its lifetime are done by installer.
• If your area offers net metering, you’ll be reimbursed for any excess electricity you generate and inject back to the grid.
• You gain from low-cost power and savings on your electricity bill.
• The Return on Investment (RoI) benefit accrues to the Investor.

Benefits of OPEX Model Solar–Operating Expenditure Model

The OPEX Model Solar is extremely attractive for consumers because by opting for this model,he receives substantial discount on power cost, without having to bear all the financial, technical and operation costs of installation of a solar power plant.

Issues and Challenges

In this context, the OPEX Model Solar is a promising alternative; yet the rate of deployment of rooftop solar under this model is still insufficient to achieve the national target and presents itself as an area that warrants increased attention of more consumers. The challenge that this model presents is that the contracts are usually made for longer period and have a likelihood of default from consumer’s end.

BOOT/RESCO – Model Drive ®

SNAD has committed itself to provide customized and innovative solutions at economical charges. Our customers get to choose from a wide variety of sustainable solar PV products of superior quality that are known for their durability and affordability. We only use products from renowned brands from all over the world that have all the necessary quality certifications. All of these ensure that we offer the best deal on Solar Photovoltaic Power Solutions. We can also import the main components of solar PV to meet our customers’ special requirements while working with the appropriate budget for the BOOT/RESCO model for solar PV rooftop projects. 

If you are looking for solar photovoltaic (PV) asset ownership, you can consider other solutions that we offer, such as the OPEX Model Solar.