PPA can be a game changer for solar industry
LAHORE: Reon Energy Limited, Pakistan’s leading solar energy-solutions company, believes that third party financing of solar energy allows more consumers to convert it by lowering the cost of solar installation of a system.
Driving the future of solar energy adoption with the Power Purchase Agreement (PPA) could be a game changer deal for Pakistan’s solar energy industry in its initial years and for consumers in the long run, the company said.
Reon Energy Limited CEO Inamur Rahman stated, “PPA financing model is a third party ownership model that has been utilised successfully in developed markets. Such models are a tremendous opportunity for developing new businesses and reducing energy costs for existing ones. Pakistan has an ample amount of sunshine that can be utilised more effectively through such financing deals.”
This concept is acclaimed widely in US and most users avoid capital expenditure at the project, to use PPA models, Rahman added.