Pakistan’s leading solar
energy-solutions company Reon believes that Third Party financing of solar
energy allows more consumers to convert it by lowering the cost of solar
installation of a system.
Driving the future of
solar energy adoption with the Power Purchase Agreement (PPA) could be a game
changer deal for Pakistan’s solar energy industry in its initial years and for
consumers in the long run.
Inam ur Rahman, CEO, Reon
Energy Limited stated “PPA financing model is a third party ownership model
that has been utilized successfully in developed markets. Such models are a
tremendous opportunity for developing new businesses and reducing energy costs
for existing ones. Pakistan has an ample amount of sunshine that can be
utilized more effectively through such financing agreements”.
This concept is acclaimed
widely in the United States and most users avoid capital expenditure at the
project, to use Power Purchase Agreement (PPA) models. In a PPA, an installer
builds a solar system at the client’s property at minimal price. The system
offsets a customer’s electric utility bill, and sells the power generated to
the client at an agreed upon tariff precisely at the lowest. At the end of the
term, the contract can be transferred to the property owner or extended.
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