Business models for rooftop solar

The growth of solar rooftop installations in India has been on the rise in recent years, driven by government policies and incentives. However, one of the biggest challenges faced by consumers and developers is choosing the right business model. In this article, we will discuss some of the business models for rooftop solar PV and their advantages and disadvantages.

1. Capital Expenditure (CAPEX) Model: Under the CAPEX model, the consumer or the project developer owns the solar rooftop system and bears the initial capital expenditure. The consumer or the project developer is also responsible for the operation and maintenance of the system. The advantage of this model is that the consumer or the project developer benefits from the long-term financial savings generated by the solar rooftop system.
2. Power Purchase Agreement (PPA) Model: Under the PPA model, the project developer owns the solar rooftop system and sells the generated electricity to the consumer at a fixed tariff rate. The project developer is also responsible for the operation and maintenance of the system. The advantage of this model is that the consumer benefits from the long-term financial savings generated by the solar rooftop system without any upfront investment.
3. Renewable Energy Service Company (RESCO) Model: Under the RESCO model, the project developer owns the solar rooftop system and provides the system to the consumer under a lease or rental agreement. The project developer is also responsible for the operation and maintenance of the system. The advantage of this model is that the consumer does not bear any upfront capital expenditure and benefits from the long-term financial savings generated by the solar rooftop system.
4. Hybrid Model: Under the hybrid model, the consumer and the project developer share the capital expenditure of the solar rooftop system. The consumer owns a portion of the system, and the project developer owns the remaining portion. The project developer is responsible for the operation and maintenance of the system. The advantage of this model is that the consumer benefits from the long-term financial savings generated by the solar rooftop system while sharing the initial capital expenditure with the project developer.

In conclusion, the choice of business model for rooftop solar PV depends on several factors, including the capital expenditure capacity of the consumer, the long-term financial savings, and the operational and maintenance capabilities. By understanding the advantages and disadvantages of each business model, consumers and project developers can make informed decisions and choose the right business model for their needs.