Renewable Energy Solutions
Our renewable energy solutions have different power procurement models. There are two related words CAPEX and OPEX , CAPEX refers to Capital Expenditure while OPEX refers to Operational Expenditure. When we choose CAPEX Module we pay for installation cost and own the installation and are responsible for its maintains. The energy produced is for our own use. On the other hand in OPEX module the solar PV installed at our premises is not owned by us but by a third party, which is also responsible for its maintenance. However we need to enter into an agreement with that party to purchase and consume all the power generated by PV plant for a long term period (15-20Years) Thus, under OPEX, third party will install PV at our home/ business premises and maintain it.
Business Models
CAPTIVE
In the captive capex model, the corporate buyer for a utility scale renewable project makes the upfront capital investment. The buyer owns the power generating asset and the solar power generated is used for the corporate
buyer’s self-consumption. Sunshine solar provides Turnkey EPC and maintains it over its lifetime.
Benefits:
➢ 93% saving on consumer tariff. (Aims to reduce his power cost)
➢AD(Accelerated Depreciation) Benefits.
➢ Tax benefits Under this structure, a corporate buyer who holds the asset on its balance sheet is also eligible to claim tax benefits through accelerated depreciation (As a new plants & machinery).
Group captive
In the Group captive model is an arrangement through which a developer sets up a power project for the collective use of multiple industrial or commercial consumers who have 26% equity shares in the project and must consume 51% of the power produced.
Benefits:
➢ Minimum Investment (Nearly Zero Investment).
➢ Discounted Power Tariff.
➢ Guaranteed savings on power tariff.
➢ No Maintenance risk.
➢ No Escalation tariff on every year.
Third-party
In the Third- party solar a customer signs a contract with an installer/developer and pays for the use of a solar system over a specified period of time, rather than paying for the power generated.
Benefits:
➢ Zero Investment from the customer.
➢ Solar power is slightly cheaper than grid-tariffs.
➢ Risk-free option that requires NO technical expertise – Developer will take care of end-to-end operations including setting up and servicing the solar asset.