Till date, most of the solar capacity in India is ground mounted and under policy based projects. The cumulative capacity of rooftop based projects in India is approximately 350 MW. However, this is likely to change as solar PV becomes cheaper and the prices of conventional power move up. We have already seen mass adoption of solar PV for rooftops in the US and Germany.
Increasingly, these installations are moving towards parity and away from the traditional feed-in-tariffs (FiT). India is very well positioned to move quite quickly as the parity based market. Factors such as frequent power cuts, increasing prices of conventional power, high irradiation and the falling costs of solar are music in the ears of the people looking to grasp the opportunity. The RESCO model will play an important part in the mass adoption of solar in India.
RESCO is a Renewable Energy Services Company (RESCO) which provides energy to the consumers from renewable energy sources, usually solar photovoltaic, wind power or micro hydro. The inherent business model of a Renewable Energy Service Company (RESCO) is different from that of a solar component manufacturer or a system integrator.
The Ministry of New and Renewable Energy (MNRE) has come up with a framework to capture the business model of a RESCO. A RESCO will typically set up the solar power project and then monetize the energy produced as compared to a system integrator, who would only install the project and be involved in the execution and implementation of the project for customer.
RESCOs are expected to operate on a model wherein they will partner with investors to own the asset (solar panels/collectors) using long term funds, generate power, distribute it and collect revenues from their customers.
In the RESCO model, the customer signs a Power Purchase Agreement (PPA) with the RESCO wherein the customer pays minimal upfront cost and only pays for the solar energy generated. This allows the customers to minimize their risk and allows them to adopt solar easily. Typically the PPAs are long term contracts.
The RESCO is a one stop institution for various energy related services through its role in interfacing with vendors, utilities and end consumers and playing the role of risk mitigator between them for effective end to end delivery of solutions and continuous after-sales-servicing.
RESCOs have been very successful in the expansion of rural electrification projects worldwide because:
• Low income rural households receive electricity without having to invest in renewable energy equipment, something that they would not normally be able to afford due to the high initial cost.
• Equipment is properly maintained and components replaced by the RESCO, making sure that the service is not interrupted,
• Equipment is owned by an organization that directly or indirectly represents the users (beneficiaries of the funding).
Fourth Partner Energy (4PEL) aims to build, develop and manage a large operating portfolio of de-centralized solar power assets in India and is positioned as a leading Renewable Energy Services Company (RESCO) with support in every part of the solar project: Financing, Engineering, Project Installation, Post-installation support.
We are an MNRE empanelled Channel Partner and an ISO 9001:2008 certified company. We are also registered as a partner with state bodies such as RREC (Rajasthan), TNREDC (Telangana) and NREDCAP (Andhra Pradesh)
For more details visit here: Fourth Partner Energy