Build-Operate-Own-Transfer provides a remedy to the demand for power which is always on the rise despite appliances and applications are driving to achieve highest efficiency ever possible. However to meet the energy demand and set up a solar power generation plant it does cost a lot of capital. Hence with business objective in mind the investors come forward to invest the fund there by large scale solar power plants are started in partnership of agreement.
Build-Operate-Own-Transfer is a solution to consumers who are low in capital and require energy to meet their power demand.
INVESTORS INTEREST IN BUILD-OPERATE-OWN-TRANSFER
Potential investors in solar power projects with an intent to reap returns over a period of time from the solar power consumers would bring in Build-Operate-Own-Transfer projects which are usually called as Build Own Operate Transfer (BOOT) (or) Lease model (or) OPEx (since no capital involved) (or) Solar Power Purchase Agreement (PPA)
CONSUMERS INTEREST IN BUILD-OPERATE-OWN-TRANSFER
The usual agreement with the solar power supplying companies will be on a long term for 15 to 20 years.
The consumer does not invest on capital except the consumption of generated solar power pays for having used the units of solar power as consumed and metered.
Different Solar company service providers on this model will have varied terms and conditions which are agreed usually at the time of agreement and locked in for a period of time.
REASONS FOR WHICH CONSUMERS PREFER TO SOLAR ELECTRICITY BUILD-OPERATE-OWN-TRANSFER MODEL A FEW ARE AS FOLLOWS.
- The pricing is competitive when compared to the local distribution company
- Individual’s social responsibility in contributing towards use of green energy.
- The price hikes on Tariffs are fixed for a longer period of time unlike the local utility companies
- Independence of choice from any power interruptions or dependencies
Some of the attributes one must consider before entering into the Lease or PPA model, this would be beneficial to both parties, investors/providers and consumers to plan appropriately.