Solar Photovoltaic Power Generation Leasing Model

What is a solar lease model?

Lease: In this model, the third-party transfers ownership to a bank or leasing company (e.g., National City) which then offers lease financing to the user. This model is targeted at commercial end-users with large roof areas and a desire to access the benefits of solar.

How does a solar PV lease work?

In exchange, customers provide access to their roof and enter into a lease agreement in which they agree to pay a monthly cost for using the solar PV system over a set period (e.g., 5, 10, or 20 years). As such, the customer still retains the roles of property owner and electricity consumer. Fig. 6.

What are the business models for solar PV installation?

The business models are concentrated around the way rooftops are being utilized for solar PV installation. Accordingly four business models could be discovered in the markets which are explained through the following diagrams. 1.1.1. Solar Roof Rental Model 1.1.2. Solar PPA Model 1.1.3. Solar Leasing Model 1.1.4. Solar Co-operatives Model

What is a shared photovoltaic business model?

Shared Photovoltaic (PV) business models enable a broader percentage of consumers to benefit from renewable energy because installation and transaction costs are significantly decreased.

What is a lease-to-own Solar System (ESP)?

ESPs can provide either a “lease-to-own” model or a “usage-based payment” model. Lease-to-own model, also referred to as the “consumer finance retail” model, involves customers paying for the entire generation capacity (i.e. solar home system) in small instalments over a period of one to three years.

Is community solar a part of the Current PV business model?

Community solar is not a part of the current PV business model, but they are the future of the shared PV business model in India. Microgrid are highly acceptable and has high adherence to Indian local regulations. Similarly, RESCO and Utility resellers are part of Indian PV business model.