Pakistan’s leading solar energy-solutions company Reon believes that Third Party financing of solar energy allows more consumers to convert it by lowering the cost of solar installation of a system.
Driving the future of solar energy adoption with the Power Purchase Agreement (PPA) could be a game changer deal for Pakistan’s solar energy industry in its initial years and for consumers in the long run.
Inam ur Rahman, CEO, Reon Energy Limited stated “PPA financing model is a third party ownership model that has been utilized successfully in developed markets. Such models are a tremendous opportunity for developing new businesses and reducing energy costs for existing ones. Pakistan has an ample amount of sunshine that can be utilized more effectively through such financing agreements”.
This concept is acclaimed widely in the United States and most users avoid capital expenditure at the project, to use Power Purchase Agreement (PPA) models. In a PPA, an installer builds a solar system at the client’s property at minimal price. The system offsets a customer’s electric utility bill, and sells the power generated to the client at an agreed upon tariff precisely at the lowest. At the end of the term, the contract can be transferred to the property owner or extended.