FINANCE OPTIONS
Today, the questions on sustainable energy solutions are no longer about accessibility and availability. With solar being cheaper than grid power, most large Commercial &Industrial consumers have accelerated their plans to adopt onsite solar. Switching to solar helps reduce carbon footprint and supports the Corporate Social Responsibility (CSR) goal of going green.
There are two options when turning to onsite solar solutions, either investing in an installation or procuring power at a pre agreed tariff (also called Power Purchase Agreement (PPA)) with a developer from an installation at the business premises. Boldborne System’s Solar Energy Solutions are run on two options, namely CAPEX option or Leaseoption.
CAPEX Option (CAPital EXpenditures)
As the name suggests, CAPEX option requires your own Capital Expenditure for setup of the solar power plant in your facility i.e. you holds ownership of the asset. If the business premises has ample space for installing a solar power plant and the business can make the upfront investment in owning a solar power plant, then a solar CAPEX option should be explored.
Think this way, you have invested in a small Power Generation Plant right on your roof, giving you up to 20% return on investment.
Advantages:
- Customer invests the capital required for commissioning of the project.
- Expected return on investment for CAPEX model up to 20% per annum.
- Once Solar Plant capital cost recovers, rest around 20 years of huge energy bill saving
- Client can avail the Accelerated Depreciation Tax Benefit.
- Client can also export the unused power generated through the net-metering procedure,
How CAPEX option works:
- Conduct initial analysis of energy demand and costs
- Workout or analyze Solar Power Generation capacity
- Present right solution for Renewable energy
- Submit and sign the commercial proposal
- Install & commission Solar Plant
- O&M contracts (Optional)
Lease Option
Under the Leaseoption, a Renewable Energy Service Company (RESCO) or Investor invests, builds and maintains an on-site solar plant situated in your facility. The customer pays for the power generated under a long-term power purchase agreement (PPA) at an agreed tariff for a fixed tenure. The Lease model mitigates the investment and performance risk that a CAPEX option since the customer only pays for the energy generated with no large asset based investment. This makes the Lease model cheaper upfront. Even with a PPA, the power is significantly cheaper than grid power.
As there is zero investment and no associated performance risks, the company enjoys considerable risk-free savings. The entire operation and maintenance for the agreed life term of the system is taken care of by the partner.
Advantages:
- Save 10-50% on your electricity bills
- Provide no capital investment
- Enjoy guaranteed performance
- Focus on your core business
- Manage long-term electricity costs
- Own the solar plant after the lease / PPA
- Improve power reliability
- Lower carbon emissions
- Enhance Corporate Social Responsibility / sustainability
How Leaseoption works:
- Conduct initial analysis of energy demand and costs
- Workout or analyze Solar Power Generation capacity
- Present right solution for Renewable energy
- Sign Lease / Power Purchase Agreement (PPA)
- Install & commission Solar Plant
- Generate monthly Invoices
- Maintain & operate Solar plant during Lease / PPA agreement
- Transfer Solar asset to the customer / end user after Lease / PPA agreement ends
