How to get a Solar Plant without investing your own capital?
Indian Government’s continued efforts to boost renewable energy capacity of India has significantly increased India’s solar capacity from 9 GW in Dec 2016 to 18.4 GW by Jan 2018. As per Jawaharlal Nehru National Solar Mission (JNNSM), government has set up a target of 100 GW solar capacity by 2022. This has attracted Indian as well as international investors to Indian solar market.
Currently, consumers can get a solar plant on their rooftop either by investing their own money or by asking a solar developer to set up a third party owned solar plant. As the initial investment required to set up a solar plant is very high, (₹43,000 – ₹48,000 per kW for large plants and ₹50,000 – ₹55,000 per kW for smaller plants) most of the rooftop owners are reluctant to put their money. For consumers with large rooftop area and high electricity tariff, solar companies have come up with a model to install third party owned solar plants on the rooftop of such consumers. This is commonly known as OPEX(Operating Expenditure) or BOOT(Build Own Operate Transfer) model.
A consumer with large rooftop area and high grid tariff can contact solar developers who can set up third party owned solar plant. Once a consumer expresses interest in such an arrangement, solar developer then assess the feasibility of the project and comes up with a solar tariff agreement. The consumer and the solar developer then sign a Power Purchase Agreement (PPA) according to which the consumer will have to buy the energy generated from the solar plant at the rates agreed upon in the PPA.
This is a very lucrative deal for the consumers as they get electricity at rates significantly lower than their grid rates and that too without risking their capital. This comes with an added advantage of zero maintenance cost as the plant will be maintained by the third party owner.
Vaultra Energy Solutions Pvt Ltd has set up such a plant in Dhar, MP. Feel free to reach out to us, in case of any queries or to get your own solar plant. Check out our website www.vaultra.in for more information.