This refers to a Power Purchase Agreement (PPA) between the customer and the energy service provider. The company acts as an investor, constructing the system for building owners and selling electricity to them at a rate lower than the utility’s, including system maintenance and care for free throughout the contract duration.
The building owner invests in purchasing a solar cell system from the company, entering into a contract where the company acts as the contractor under the conditions of an Engineering, Procurement, and Construction (EPC) agreement. This includes sourcing, constructing, and overseeing the system post-installation.
| Solar Rooftop Business Model |
Power Purchase Agreement (Private PPA) |
Business owner's investment (Self Financed) |
|---|---|---|
| Property rights | Company (investor) | Business owner |
| Investment | None | Business owner |
| Saved money | Receiving discounts on electricity from the solar system | Using electricity for free from the solar cell system |
| Maintenance | Free | Free for the first 2 years |
| System warranty | Free | System: 2 years, Solar panels: 25 years, Inverter: 10 years |
| Insurance | Free | Business owner manages their insurance, provide insurance company choices |
| Solar Rooftop Business Model |
Power Purchase Agreement (Private PPA) |
Business owner's investment (Self Financed) |
|---|---|---|
| Benefits | Save on electricity costs (10-20%) without the need for any upfront investment | Save on electricity costs from day one, with benefits lasting up to 25 years |
| Guaranteed electricity cost savings throughout the contract duration | Eligible for up to 50% tax deductions from the BOI for your investment | |
| Offering the option for building owners to convert the contract to a system purchase from the investor | ||
| Comprehensive system management, from investment to maintenance, throughout the contract period | Return on investment period is approximately 5-6 years (without BOI privileges) | |
| Reduce greenhouse gas emissions | Reduce greenhouse gas emissions |