Solar Energy is making great inroads in India and it is expected to become one of the leading sources of power in the coming times. This is mainly attributed to the ease of installation and operation of Photo Voltaic technology.
Enerco Energy Solutions LLP has recently launched RESCO (Renewable Energy Service Contract) also known as BOOT (Build-Own-Operate-Transfer) or OPEX financial model in India for Solar Energy power projects. Enerco Energy Solutions LLP undertakes the 100% financing and execution of Solar Energy power projects on a turnkey basis +O&M of the project.
The business model also known as RESCO (Renewable Energy Service Company) or OPEX model is about investing in Solar Energy projects at a Client side with the entire investment by the executing Company i.e. Enerco Energy Solutions LLP.
A Power Purchase Agreement (PPA) is signed with the consumer and the Solar tariff is generally at a price lower than grid tariff.
Benefits of this model :
1. The consumer (typically Industrial / Commercial) does not have to invest any amount in the project - the project is 100% funded by the execution company.
2. The consumer starts saving on cost from first day of operations as the Solar tariff is lesser than grid tariff (and certainly much lesser than cost of power from D.G. set).
3. The O&M and upkeep of the project is the responsibility of the execution company.
4. The project is installed at consuming company's site - thereby projecting it's image as an energy and environment conscious company.
5. The project is transferred free of cost or at a nominal cost to the consumer - subject to the agreement terms.