Frequently Asked Questions
How can your industry / commercial establishment go solar at Zero up-front investment?
SunSpark Energy provides the option to select industrial and commercial clients in India to go solar at zero-upfront investment under the BOOT model (Build, Own, Operate, Transfer). Under the BOOT model, SunSpark Energy will invest up-front in the solar power plant and will sign a long term Power Purchase Agreement (PPA) with the client (which is generally 15-25 years). The client agrees to pay SunSpark Energy via the solar PPA on a monthly basis for the solar energy consumed from the plant. The per unit rate charged by SunSpark Energy for the solar energy consumed by the client, is priced 20%- 60% lower than the conventional power rate paid by the client to the Govt. state electricity board (EB). By going solar under the BOOT model, the client can start saving significantly on power costs and hedge against future increase in electricity prices, at zero up-front investment. Further, at the end of the solar PPA, the solar power plant is transferred to the client at zero cost.
What is Net-Metering?
Almost all state and private DISCOMS in India now provide a facility called as Net-Metering to promote rooftop solar installations. Under net-metering, the client can send excess solar power generated and not utilized on-site in real time, back to the state electricity board (EB) and these exported units, are adjusted at the end of the month in the client's electricity bill.
Let’s take an example: a factory close to Mumbai installs a 100 kWp rooftop solar power plant.This factory generally consumes ~ 24,000 units /month and is shutdown every Friday. The 100 kWp solar power plant will generate ~ 400 units /day on average. Every Friday the 400 solar units generated and not consumed by the factory will be sent back to the Govt. electricity board and will be adjusted against the net units consumed by the factory at the end of the month:
Power bill before rooftop solar installation : 24,000 units / month * Rs 8.90 /unit = Rs 2,13,600
Power bill after rooftop solar installation :
Solar Units generated and consumed in real time: 10,400 units (26 days of 400 units/day, excluding 4 Fridays)
Solar Unit exported to grid: 1600 units (400 units /day * 4 Fridays /month)
Net Units billed by Govt. EB after solar installation: 12,000 units/month (24,000 units /month (Monthly requirement) – 10,400 units /month (Units generated by solar power plant and consumed in real time by the factory) - 1600 units /month (Units exported by the solar power plant to the state EB)
Power bill after going solar: 12,000 units /month * Rs 8.90 /unit = Rs 1,06,800
Hence we see that with the net-metering facility, solar power is never being wasted and clients can avail the maximum return on their solar investment (ROI) in-spite of having weekly / monthly downtime.