FINANCE CONSULTANCY SERVICES
Government of India is encouraging adoption of solar energy by every Indian. To promote convenient adoption and use of solar energy, public sector banks & private banks have been given statutory instruction by Ministry of Finance to offer loan at reasonable cost. We encourage all Indians to go solar with easy financing facility.
Different financing models for solar roof top projects
We offer our clients various financial structures to suit their financial needs (partial investment, fixed / variable tariff etc.).We help our consumers to freeze the solar project requirement after due technical assistance and facilitate them with an easy access to financing. As per the project size ,investment amount & different financial needs, following two models are prevalent in the solar roof top market :-
1. CAPEX Model 2. RESCO Model
The most common solar rooftop financing option where customer has to pay 100% cost upfront .One among many advantages of this model is that consumers are eligible to claim accelerated depreciation to gain tax savings & make reasonable return on investment. Consumers who are facing high liquidity problems are not advised to opt for this finance option. Here O & M responsibilities are of rooftop owner.
Under the RESCO model, a third-party company finances, installs, operates and maintains the rooftop solar project. A power purchase agreement /lease agreement is signed between the installer and the consumer at a mutually agreed price (tariff). The main advantage of this model is that consumer can install a solar PV system and simultaneously have the choice whether or not to consume the electricity. Based on the consumption choice, the model is further divided into two types –
In Rooftop Leasing the project developer will be paying a fixed lease payment to a building owner over the time of the lease period for installing the solar panel on the rooftop.
Power Purchase Agreement (PPA):
In Power Purchase Agreement the project developer can sell the power back to the building owner in favor of a lower solar power tariff. The excess power could be sold by the developer to the utility.