Revenue Streams

According to a survey conducted by mint average household consumes 250

units of electricity at Rs6/unit which results in around Rs1500 electricity bills
per month. If these households decides to go for solar power they would have
to buy 8 solar panel of 250Wp each that will last for 25 years guaranteed and
will produce 180 units of electricity per month resulting in savings of Rs1100
every month. While the cost of electricity produced from fossil fuels is going to
increase due to inflation our product will generate electricity at the same
price.To generate revenue we will tap these households as well as industries
and educational institutes that have a lot of roof space lying vacant by
installing the solar panals into their roofs threw OPEX model as explained
below.

There are two models for revenue generation:-

1. CAPEX model
In this Capital Expenditure will be customers. He will pay the complete system
cost to System Installation Company in one shot and this would be his own
system. And he will be get benefited for free electricity for next 25 plus
years. If one is planning to install solar for his home or small business and the
installation size is less than 100kW, one and only way to get it installed is
CAPEX model. For installing company this model results in fix income.

2. OPEX Model (Pay per Unit with Power Purchase Agreement)

In OPEX model the operation expenditure will be taken care by the customer
System Instillation Company will install the complete system at their own cost
on their rooftop through a 10-25 year Power Purchase Agreement (PPA)
between you and installation company. After that you just need to pay per unit
on monthly basis. The PPA rates (Rs. 3 to Rs.7) are depending on installation
size, PPA time period and company credit rating. If one wants to install solar
power plant for their institute, business or industry and the installation size is
above 100kW. You can go for OPEX model. This would result in recurring
income for Installation Company. This model can be very useful for industries
to make use of their rooftop to generate extra income and reduce their carbon
footprint.