Reporter PK

Energy sale options to encourage businesses to go solar

Energy sale options to encourage businesses to go solar

ReonEnergy expenses have a direct hit on the company’s bottom-line and the effect gets multiplied with the energy shortfall reaching up to 8000MW during peak load times. Pakistan being located in the Sun Belt undoubtedly offers a wonderful opportunity to harness solar energy that can bear free energy for 25 years other than the installation cost at the start of the project and minimal maintenance expenses along the way.

For those business owners who aim to avoid upfront costs and limit their risk, energy sale is a fantastic concept presented by Reon Energy Limited. Energy sale is a financial agreement where the developer arranges for the design, financing, and installing of the project at the client’s property at zero or low upfront cost. The energy generated from the solution is sold to the customer at an agreed upon rate usually lower than that of the local utility’s rate. At the end of the financial term, the client can choose to buy or extend the contract.

“Energy Sale Model is a third party ownership model that has been applied successfully in the United States and other developed markets. Such models are a tremendous opportunity for new businesses and energy intensive manufacturing facilities. Pakistan has an ample amount of sunshine that can be utilized more effectively through such financing mechanisms,” said Inam ur Rahman, CEO, Reon Energy Limited.

Reon’s installation at IBL building Shahrah-e-Faisal is a part of its energy sale agreement. Such agreements shall incentivize medium and large scale businesses to shift to green energy. Reon is part of the Dawood Hercules Corporation that is one of the largest private sector energy provider in Pakistan

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