The Possible Investment Models for Solar Installations

Although India ranks fifth in the world in solar power installed capacity, yet many businesses hesitate to make the transition from traditional power to solar power. Most businesses are aware of the substantial financial savings they can get, as well as the opportunity solar offers to help reduce their carbon footprint. And yet there is uncertainty.

Some businesses find the initial investment to be a prohibitive factor. At B. U. Bhandari Energy, we understand that the upfront investment, even without making any massive infrastructural changes to your existing system, can put a strain on the annual budget.

To help you overcome this challenge, we have created four investment models for you to choose from depending on your financial capacity at the moment of taking the decision. Whichever option you choose, your savings on power will be significant.

If you have idle rooftop space or vacant ground space, you are already halfway to making your solar energy transition. Our expertise includes designing and installing a customized solar rooftop system and helping to set up a metering system which will eventually pay you back.

The installed solar rooftop system will last you several years, and the investment models will have you enjoying lower electricity bills from the get go.

Is a solar rooftop installation an expensive proposition?

Reducing their carbon footprint is fast becoming top priority for many businesses, especially with customers also looking to associate with businesses that show their concern for the environment. Towards this, businesses are willing to invest in sustainable business processes and consider looking for alternate sources of energy.

Solar energy is one such area that finds appeal among businesses since it is relatively easier to implement and does not require massive overhaul of their existing infrastructure. However, some find the initial investment a prohibitive challenge. Is solar energy something that you have given thought to but haven’t yet made up your mind about?

Read on to know how easy it is to shift your industry’s power supply to solar power, and make a positive impact not just on the environment but also on your bottom line.

There are multiple players and an equal number of business models to choose from, and at B. U. Bhandari Energy, we are committed to help businesses like yours make this transition with ease. If you have an idle rooftop or vacant ground space, you can convert it into a revenue-generating powerhouse that can run your industry, deliver substantial savings while helping protect the environment.

What you need

Converting your vacant space into a revenue-generating solar energy system requires a few things:

• - Solar panels
• - An inverter to convert the generated DC power into AC power
• - An electrical panel that can distribute the generated solar power to the main panel
• - Bi-directional utility meter to keep track of your generation, consumption and export
• - Fall protection safety equipment like SS lifelines, roof access, railings, etc.
• - Electrical protection via switchgear, earthing, ESE lightning arresters, etc.
• - Maintenance systems like walkways and water cleaning systems

But how much will this cost?

The good thing about the solar energy system is that it requires not much modification to your existing power infrastructure. Having said that, however, setting up a rooftop solar system requires a sizable investment, and if you were to decide to do it immediately, you might feel a bit of a strain on your annual budget. At B. U. Bhandari Energy, we understand the financial challenges you might face, and so we have created four business models that can help you get started on your solar journey.

CAPEX

• - The investment and ownership of the asset is completely yours
• - Payback can be expected in about 3-4 years
• - Enjoy enjoy 100% savings at grid tariff
• - All O&M costs will be borne by you
• - We can help arrange for collateral-free funding and the EMI can be paid from your savings

OPEX/ RESCO

• - A 3rd party makes the investment and has ownership
• - Power is sold to the offtaker at a discounted tariff as compared to the grid tariff
• - This is calculated as per the number of units generated
• - The 3rd party will bear all O&M responsibility and cost
• - You quill receive ownership at the end of the tenure

OPERATING LEASE

• - You enter into a 3-5 year operating lease
• - The savings are used to clear the lease amount
• - Ownership will be transferred to you at the end of the lease period at a residual value
• - Besides electricity savings, you can also enjoy tax benefits on the lease expense

PERFORMANCE LINKED LOAN

• - The system is invoiced to you and belongs to you from the first day
• Loan repayment happens over a predefined tariff for a predefined period and is calculated on the number of units generated
• - Responsibility and cost of O&M lies with 3rd party
• - Besides electricity savings, you can also enjoy tax benefits on the lease expense

Operation and maintenance services required for solar projects

What other expenses can you expect from your installed rooftop solar system? As with any equipment or technology, you will be required to conduct periodic maintenance for its seamless operations. This includes:

• - Plant performance monitoring
• - Annual maintenance plan
• - Spare management
• - Warranty management
• - Module cleaning
• - Electrical maintenance
• - Structural tightness check
• - Reporting on maintenance activities, safety

Business benefits of rooftop solar

If you’re wondering about the expenses versus benefits of a rooftop solar system, allow us to present to you the likely substantial financial savings. This example should show you how.

System size	300kW with a rooftop space of 3000 sq mtr
Units generated	Each kW generates approximately 1500 units of electricity every year (based on the orientation of the roof)
Annual generation	4,38,000kW
Monthly saving	₹2.88 lakh
Annual saving	₹35 lakhs
Lifetime saving	₹7.35 cr
Payback period	3-4 years
Plant life	25 years
Depreciation	60% in first year, 40% after that

Environmental benefits of rooftop solar

Besides the savings on money; you also get an opportunity to save the environment. Solar is a great way to bring down your carbon footprint.

System size	300kW
CO2 emission	359 tons/ year for a minimum of 25 years
Trees planted	18735 over 25 years
Water saved	967104 liters over 25 years

Partner with us

At B. U. Bhandari Energy, we have spent years providing onsite solar power solutions to countless industries and businesses in India. We utilise the best technologies with the best design to create customised solar rooftop installations. Talk to us today to discover the perfect financial model for your rooftop solar installation.