Pakistan Meteorological Department has warned that the country is likely to witness high temperatures throughout June. Last month Pakistan witnessed record high temperatures where temperatures soared above 50 degrees Celsius in the south. International media termed the phenomenon a “Perfect Climate Storm”. Global average surface temperatures have risen by 0.08° C per decade since 1880 (2). According to the Meteorological Department, Pakistan’s main land surface air temperature in 2021 has risen by an alarming 0.99°C since the 1990s (3).
Figure 1.Pakistan’s annual mean temperature anomalies (with 1961-1990 as the base period) for the period 1961-2021 (Source: Pakistan Meteorological Department)
Accumulation of Greenhouse gases, specifically carbon dioxide, in the atmosphere is the main driver of “global warming.” A large amount of carbon dioxide is released from burning fossil fuels to generate electricity and contributes to the greenhouse effect. Pakistan is also heavily dependent on non-renewable energy sources for its power, as only 2% of electricity is generated from renewable sources. (4).
Figure 2.Pakistan’s energy mix – share in Electricity Generation (Source: Ministry of Energy)
To support a shift toward green energy State Bank of Pakistan (SBP) had launched its “Green Banking Initiative” to encourage renewable energy projects. The policy enabled sponsors of renewable energy access to grants of refinancing (5). Shams Power Limited was able to successfully close a 𝐏𝐊𝐑 𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 project finance facility from Bank Alfalah Limited with a partial credit guarantee from GuarantCo, under this SBP refinancing policy.
Figure 3.Signing ceremony attended by: Saad ur Rahman Khan, Group Head, Corporate, Investment Banking, and International Business Group Bank Alfalah (left); Atif Bajwa, CEO Bank Alfalah (middle); Omar Malik, CEO Shams Power (right); Asif Elahi, Partner Capital Resource and Emily Bushby, Interim CEO GuarantCo (virtual)
Climate change directly affects the competitiveness, profitability, and survival of corporates. Pakistan’s Commercial and Industrial sectors need to be vigilant and should champion a cause for sustainable development. One of the core pillars of Sustainable development is the adoption of renewable energy sources like solar, wind, and biogas. Collaborating with a private energy provider to access renewable energy is a popular method to ensure replacement for traditional energy sources.
Shams Power is one of Pakistan’s recognized solar energy providers, serving the commercial and industrial sectors by facilitating solar sustainability on a PPA basis. Renowned corporates like METRO Cash & Carry Pakistan, Coca Cola, Packages Mall, Maxim Agri Pvt Ltd, Nishat Hyundai, Emporium Mall, AkzoNobel Pakistan, and many more have chosen clean and green energy through power purchase agreement plan with zero upfront cost and guaranteed savings in return for discounted rates on energy tariff.
[vc_row][vc_column][vc_column_text]Over the last decade, PPA Solar System has emerged as one of Pakistan’s most promising renewable energy financing options available for the commercial and industrial sectors. When choosing Solar Energy in Pakistan, companies tend to look at the solar benefits and their contribution to a sustainable future. Solar PPA enables multiple benefits like discounted tariff rates, zero installation fees, and no O&M hassle. With the tightening economic conditions commercial & industrial sector’s tendency to opt for solar energy on a PPA basis has increased.
Let’s have a look at a few reasons why Solar System on PPA basis is suitable for your business in 2022.
Solar PPA Cut Downs the Utility Bills with Solar Energy
In Pakistan electricity tariff rates constantly fluctuate and the trend seldom dips. Unexpected hikes occur in the energy expenses which upsets the operational excellence of the organizations. However, with Solar Power Purchase Agreements, the company get electricity units at a discounted rate. It helps them accomplish their energy requirements with reduced electricity bills.
Through Solar PPA Get Solar Energy with Zero Capital & Operation Costs
Under Solar PPA contract, clients enjoy access to solar energy without paying any financial or operation costs. Through solar energy corporates can utilize a diverse energy mix to enable significant savings on electricity bills, increase energy independence and achieve sustainability goals. By supporting businesses that share the sustainable development goals, Shams Power aims to provide turnkey environment friendly solutions
Get free Maintenance
Solar Power plants do require regular maintenance and the whole process is very delicate so must be handled by experts. Under Solar PPA clients get free maintenance service for the complete solar plant throughout its PPA contract. Shams Power’s skilled professionals do all maintenance and cleaning throughout the duration of the contract while adhering to all HEC standards.
Reduce Carbon Footprint
The recent forest fire in the Koh-e-Suleman (Pakistan) mountain range brought attention to the urgent need to address the world’s rising climate crisis. A shift towards renewable energy sources such as solar, wind or biogas would greatly reduce harmful carbon emissions. In solar industry high upfront cost is the greatest barrier to solar adoption. With Solar PPA more corporates can have access to solar energy as the client only has to pay a discounted tariff on the energy units consumed and there are no upfront or operational costs.
Increases The Company’s Eco-Friendly Value.
With energy independence through Solar PPA, the commercial and industrial sectors can reduce their carbon footprints and fulfill their energy requirements at discounted tariff. Clients can choose a variety of solar installations like Commercial Rooftop Solar structure, ground mounted structure or car parking.
Shams Power recognizes the importance of environmental sustainability beyond its product line and is proud to be at the forefront of the industry in this regard. In 2021 Shams Power produced 6 million units of clean solar energy, which is 3510 tons of Carbon emission reduction 2021. Shams Power strives to develop solar systems that are as ecologically sustainable as possible. Thus, companies working with a PPA Solar system developer like Shams Power are better positioned to successfully accomplish their Sustainable Development Goals.
Conclusion
If you are a business determined to contain environmental degradation through adoption of renewable energy sources, then going solar is a prudent option. To begin the journey of change, answer a few simple questions about your factory/workspace/production unit and discover how it would look with solar plant from our design specialists.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text]Solar energy is the most adopted and feasible renewable energy option for Pakistan’s commercial and industrial sectors. Organizations have renewed their interest in solar energy due to its commercial and environmental benefits. Solar energy enables significant savings in electricity bills, access to clean energy, and an increase in energy independence. However, a few but widespread ‘myths’ have been a major hindrance to solar adoption.
The following are the handful of the most common solar power misconceptions and truths.
1. Myth: Installing Solar Power System is expensive for a Business
Fact: Investment in a Solar Power Plant is relatively expensive in the short run but only if fully financed by the user itself. New solar financing options such as Solar PPA, have made Industrial Solar Installations very feasible. Under Solar Power Purchase Agreements (PPA) the client does not bear the financial investment or operational costs and still can enjoy all the benefits of solar energy. Shams Power is the leading Solar PPA developer and undertakes all of the financing, installation, operations & maintenance of the solar power plant.
2. Myth: Solar power is more effective in hotter weather
Fact: This is another popular misconception when it comes to understanding the production of solar energy. In reality, PV cells in the solar panels absorb sunlight instead of heat to produce electricity. If there is ample sunlight It’s possible to generate solar energy even in extremely cold conditions of Artic or even in Sub-zero Space. Too high temperatures may hamper energy production.
Shams Power experts perform yield and shadow analysis that makes solar system positioning effective and efficient enough to produce optimum energy units.
3. Myth:Solar Energy System needs consistent high maintenance
Fact- Solar Power plants do require regular maintenance and the whole process is very delicate so must be handled by experts. However; the solar system’s maintenance is still less complex when compared to the maintenance needs of other energy sources.
Under Shams Power’s Solar PPA all of the maintenance and cleaning is handled by our professional experts who will clean and maintain the solar plants by adequately following all the HEC policies.
4. Myth: Solar systems can badly affect the roof of the installation site
Fact: Solar systems if designed and installed by a proficient team will have no adverse effect on the roof, on the contrary, the solar panels can provide coverage to the roof protecting it from various harmful elements.
5. Myth: Solar systems look unattractive on the premises.
Fact: Experts ensure to install Solar PV systems in places and angles that do not affect the physical outlook of any building. Solar installation types vary and can be installed on the rooftop, ground, and even on a parking lot as per the available area.
With the experience of overseeing 450MW, Shams Power boasts a highly experienced and skilled in-house team. These seasoned professionals ensure that the solar system design is aesthetically appealing and business’s premises are not harmed during installation.
6. Myth: Solar has a long payback time
Fact: Continuous innovation in solar technology has made harnessing the sun’s energy very feasible. Solar costs have decreased by 90% in the last 10 years. Solar energy users save on-grid electricity costs from day 1 by getting clean and green solar energy at discounted rates.
Through Shams Power’s Solar PPA our clients enjoy 30% to 60% savings on their electricity bills. With zero CAPEX – OPEX cost they enjoy savings from day 1.[/vc_column_text][/vc_column][/vc_row]
There is only one earth, and it’s in danger. Our blue planet is losing its majestic ability to sustain life. According to the National Aeronautics and Space Administration (NASA), there are more than 100 billion planets in our galaxy. Up till now, humans have been unable to find another planet completely capable of sustaining life. So, there is #OnlyOneEarth!
Why worry?
Decades of negligence have resulted in a ‘triple planetary emergency’[1]. Temperatures on the world level are rising at an alarming rate which has led to plethora of disasters, including droughts, heat waves, and floods. Continuous destruction of habitat has put an estimated 1 million species on the trajectory toward extinction. Disturbance in ecosystems have caused a rapid decline in the population making many species endangered. Pollution of Air, Land & Water have directly affected the wellbeing of all living things on earth.
What is World Environment Day?
In 1972 United Nations, at the Stockholm Conference on the Human Environment, introduced the environment revival initiative known as “World Environment Day. The campaign aims.” to spread awareness about the environmental challenges and encourage a call to action to conserve and protect our ecosystems.
Pakistan has hosted the 2021 edition of “WORLD ENVIRONMENT DAY” under the slogan of “Ecosystem Restoration”. This year’s campaign will be hosted by Sweden under the theme of # OnlyOneEarth. This year also marks 50 years of celebrating WORLD ENVIRONMENT DAY since its inception in 1972.
Our Responsibility
Corporates and Industries (C&I) are the commercial backbone of Pakistan’s economy. The scale of their operations is massive enough to have a direct effect on society and the environment. In 2021, Industries contributed around 23% to the GDP, and currently, employees are 15.3% of the labor force [2]; however, Pakistan also produced 217 million metric tons of carbon dioxide (MtCO2) emissions in 2021[3] .
In order to promote collective action, all facets of the society must band together and work towards the revival of the lost ecosystems. C&Is can champion this cause by focusing on sustainable development, including increasing the adoption of renewable energy, reducing and recycling industrial waste, and introducing strict controls on commercial air, water & land pollution.
By focusing on sustainable development, Corporates and Industries (C&I) can revitalize environmental initiatives to save our planet as there is #OnlyOneEarth!
METRO Cash & Carry launched its “Clean and Green Pakistan” initiative in the year 2019. Metro Pakistan is collaborating with Shams Power to install solar power at all Metro stores, helping them switch to a greener source of electricity.
Shams Power Will Solarize 5 MegaWatt for Metro Stores
Under the long-term Power Purchase Agreement (PPA), Shams Power will invest and install over 5MW solar power plants at rooftop and carports of Metro stores across Pakistan and operate them for the entire duration of the PPA. This model removes all CAPEX responsibility, Operations & Maintenance expenses, and equipment performance risks for Metro. Moreover, the equipment will be transferred to Metro at the end of the PPA, giving them free electricity for the remaining life of the equipment.
Outcomes of this PPA Agreement
The installation will allow METRO stores to reduce 2,639 tons of CO2 emissions each year. It will enable METRO to enjoy 38% savings in electricity bills without any capital investment or upfront costs. METRO Group observes sustainability as an integral element of its company’s core business, and with this project, they will utilize 6,000,000 units per year of clean solar energy. The group strongly encourages that a company’s economic growth comes with sustainable practices.
In line with their robust sustainability vision, their collaboration with Shams Power Limited has allowed METRO Pakistan to effectively adapt its Sustainable Development Goals (SDG) #7, i.e., Affordable and Green Energy.
Why Shams Power?
Shams Power is one of the most prominent solar energy solutions providers in Pakistan. It effectively provides turn-key solar solutions based on Build-Operate-Own-Transfer (BOOT) model. Shams is the first company to have NEPRA issued Distributed Solar Generation License. Its end-to-end solar services make solar adoption a seamless and smooth transition for the corporates making it an ideal option for the commercial and industrial sector companies.
AkzoNobel Pakistan, a leading chemical and paint company that creates performance coating, decided to go green with solar energy. For this, AkzoNobel collaborated with Shams Power Limited to adopt a solar system in their head office and manufacturing facility in Lahore.
Power Purchase Agreement Points
Shams Power Limited will utilize the carport structures of AkzoNobel to install a solar power plant that will help them generate 460KW of DC power on a Power Purchase Agreement basis.
Shams Power Limited will utilize the carport structures of AkzoNobel to install a solar power plant that will help them generate 460KW of DC power on a Power Purchase Agreement basis.
Shams Power Limited will handle the operation and maintenance of 1,393 panels and other related equipment during the agreement tenure and will hand over the solar system to AkzoNobel after the PPA contract term expires.
With solar energy, AkzoNobel will be able to plan their energy costs effectively without worrying about the price fluctuations, as they will be only paying a fixed discounted rate per unit.
Expected Outcomes in the Future
AkzoNobel expects to save 387,000 kilograms of CO2 per year of this project. It is equivalent to either replacing 0.4 million pounds of coal burnt to produce electricity or avoiding the use of 1,000 barrels of gasoline. Furthermore, with Shams Power’s assistance, AkzoNobel will have a sustainable and energy-efficient solution.
Deployment of Green Energy: An Initiative of Shams Power
Through this Build Own Operate and Transfer (BOOT) Model, Shams Power has provided AkzoNobel with a customized solar system to overcome their energy needs using a carbon-free and eco-friendly solution. Given the worrying changes in nature, shifting to a greener alternative has become an essential step toward a cleaner future for Pakistan. AkzoNobel, a socially responsible company, recognizes the necessity of moving towards a carbon-free solution for a better future. Hence, their initiative of deploying green energy is for stepping towards a greener society.
Many companies nationwide are now adopting this cost-effective renewable source for their business operations. You can be a part of this change and join hands with Shams Power to transform your energy mix into a renewable solution.
The international news published the PPA agreement update between Shams and AkzoNobel in their official blog. Check out!
Pakistan is one of the affluent countries in terms of solar energy availability. It ranks sixth in terms of solar energy potential and ranges from 1500 to 2200 kWh/m/year.
The industrial and commercial sectors in Pakistan are mainly reliant on non-renewable grid power. One example is Diesel generators; they supply backup power but arecostly and have low reliability. As a result, it is increasingly difficult for firms to thrive in highly competitive global and local marketplaces. Thus, now many firms are looking for greener alternatives like solar energy solutions to run their daily operations without any hassle.
The above underlying factors have consequently encouraged the shift of the industrial sector towards renewable sources. Pakistan Solar Solutions like Solar PPA rooftop, ground-mounted, and solar carport structures have worked out as a positive instigator for solar power development in the industrial sector. Hence, many firms opt to get electricity from private solar energy providers to reduce the energy deficiency.
Implementation of solar grid solution on a national scale
Pakistan, fortunately, is one of those countries that receive 1,500 kWh/m of irradiance annually over 90% of its land and has a large capacity for solar power generation. The annual mean value of Global Horizontal Irradiance (GHI) for Pakistan, 2071 kWh/m, calls for a great investment opportunity for Solar Power generating companies.
The introduction of the Solar Power Purchase Agreement and BOOT (Built-Own-Operate and Transfer) Model has made the installation of Solar System very convenient.
Solar Power – A Promising Investment
Pakistan’s industrialists are prepared to diversify the country’s energy mix by engaging in solar power facilities. This approach encourage implementing advanced clean energy technologies like Photovoltaic Solar Energy, Solar Panel Systems, and net metering in the industrial and commercial sectors. Backed by the government’s commitment to promoting sustainable energy, many private firms are now rooting for solar grid solutions on Power Purchase Agreement Basis.
Hence, many firmsare adapting sustainable energy expertise with the help of Solar Power generating companies for long-term benefits. Let’s take a peek at a few of them:
Metro Cash & Carry Pakistan Partnering with Shams Power
Metro Cash & Carry Pakistan, signed a solar Power Purchase Agreement (PPA) with Shams Power. The enterprise’s corporate goal was to install Solar Panel Systemsat its stores all over Pakistan. It allowed them to incorporate 5MW of solar power systems for reducing 2,639,000 kgs of carbon emissions annually.
AkzoNobel Pakistan bears no capital expenditure with Shams Power
AkzoNobel Pakistan, a renowned paints and coatings manufacturer has also installed a solar system at the Lahore production site and office. Shams Power will manage and maintain solar systems for AkzoNobel Pakistan on a Power Purchase Agreement (PPA) basis. This means that AkzoNobel will pay zero for investment and maintenance cost. Thus, Shams Power has constructed a 0.5 MW solar power system as part of this arrangement, saving AkzoNobel Pakistan about EUR 14,000 in electricity expenses and 387,000 Kg of carbon emissions per year.
Packages Mall finds Grid Tied connectivity with Shams Power
On a PPA basis, Shams Power installed a 2 MW rooftop solar system at Packages Mall. It will help them to cut carbon emissions by 1100 tons per year. Under the BOOT model, they received a tailored solution in the form of a Power Purchase Agreement, which enabled them to pursue effective efforts toward a more empowered, greener future.
How can a company benefit from Shams Power Solar Solutions?
We at Shams Power are continuously devoted to benefiting industrial and commercial sector corporations socially and environmentally.
Pollution Free Energy Conservation:
Shams Power’s On-grid solar solution allows you to keep track of your energy costs.
Our solar PV systems can generate power efficiency for zero carbon emission. Furthermore, our yield and shadow analysis significantly helps in correctly estimating the optimal positioning with the proper angle. Our in-house design team strives to deliver comprehensive panel positioning with better accuracy through utilizing cutting-edge software technologies for our client.
Clients leveraging unused resources without any investment:
Shams Power helps you better utilise unused space throughout the PPA-based on-grid solar system and off-grid solar system. Our rooftop solar panels have the potential to absorb an abundant measure of light while still shielding your regular roofing materials from UV rays and other hazards. We do not rely on a single tool to enhance the efficiency of our PV plants; instead, we compare the results of numerous tools and use what we have learned from other initiatives to improve the efficiency of our PV plants.
Path to Growth With Shams Power
Shams Power, one of the best Solar Solutions providers in Pakistan. With its solar financing service under BOOT Model, we have found tremendous success in the industrial market, installing mega power plants in various commercial and industrial ventures.
Our deliverance is reliable and acknowledged by various commercial and industrial enterprises. Our BOOT Model (Built, Own, Operate and Transfer) serves as a catalyst for advancing Pakistan’s ambitious clean energy projects.In addition; we support solar rooftops, ground-based systems, and solar carport structures, covering all procurement, installation, operations, and maintenance expenses.
Are you still pondering your energy requirements and options? Partner with Shams Power, and we wll take care of the rest, guaranteeing a smooth transition towards solar power technology without hidden costs and risks.
We have all the necessary components in place required to make the projects successful.
International Energy Agency reports suggest that the consistent growth in the global demand for Social Energy solutions will create an expected rise in solar production to 3300 TWh by 2030.
This possibility of an efficient energy supply spike in developing countries indicates a strong socio-economic development relationship with its production capacity. However, many developing countries like Pakistan, where large energy production mainly relies on non-renewable sources, still face prolonged power shortages due to Energy Transmission and Distribution constraints.
The unreliability of the grids and transmission lines has called for a rise of new significant measures to produce energy with a sustainable solution. Hence, the demand for renewable energy solutions like solar PV systems has been progressively rising in the commercial and industrial sectors of the country.
With the introduction of rooftop and ground-mount solar applications, the implementation of the Solar System in Pakistan is helping large corporates to capitalize on solar energy for a better future.
Promising Scope of Solar in Pakistan
Solar Power is the most affordable and environmentally sustainable way to overcome Pakistan’s energy deficit if its demand in industrial and commercial sectors is increased. With this approach, Pakistan’s government has also set a target of producing about 10 GWh of renewable energy by 2030. Furthermore, to maintain and expand the country’s solar power resources, the Alternative Energy Development Board (AEDB) also abolished solar energy tax duties in 2006.
Hence, these uplifting policy regulations have encouraged large corporations and industrial sectors in Pakistan to collaborate with private energy providers to adopt renewable energy as a potential replacement for traditional energy sources.
Shams Power is one of Pakistan’s recognized solar energy providers, serving the commercial and industrial sectors by facilitating solar sustainability on a PPA basis. Renowned corporates like METRO Cash & Carry Pakistan, Packages Mall, Maxim Agri Pvt Ltd, Nishat Hyundai, Emporium Mall, AkzoNobel Pakistan, and many more have chosen clean and green energy through power purchase agreement plan with zero upfront cost and guaranteed savings in return for discounted rates on energy tariff.
What does a commercial and industrial solar installation look like?
Solar Energy brings a tremendous amount of convenience to corporate sectors and solar financing investors. Since Pakistan is known to have an enormous capacity for solar power, every merchandising firm, factory owner, and educational institute can get the benefits of solar energy in one way or another.
With the help of Solar PPA, many solar installations like rooftop and ground-mounted solar have become feasible for different industrial and commercial sectors, and many corporations are pursuing more solar projects on a PPA basis. Apart from reducing the carbon footprints, it attracts environmentally conscious clients looking for sustainable practices while doing a business.
Hence, contrary to traditional grid energy, with the PPA Rooftop solar power plant, companies avail a guaranteed saving from Day 1.
Enhancing efficiency with Rooftop Solar
The designs of factory roofs should be flat and broad with enormous unused space, making it more convenient for the company to use the available area to install solar power plants for proper production.
The rooftop solar spaciously utilizes the free space with flexible architectural designs to maximize solar energy output from better angles by doing the yield and shadow analysis.
In Pakistan, many businesses, including Multi-National companies, have large production plants with plenty of flat roof areas, making it ideal for generating renewable and low-cost solar energy to capitalize on existing unutilized resources.
Moreover, in the case of the Rooftop Solar Power Plant, the analysis of yield and shadow should be done, so the implementation of the solar system becomes simpler and quicker.
Accessibility to Commercial Entities
Commercial property owners can significantly reduce the expenses of electricity and operational activities by adopting more practical resources. As Shams Power is installing Commercial Rooftop Solar Power Plant on a Solar PPA basis, so it’s very profitable for large commercial businesses, especially when renting commercial facilities to other companies.
Hence, the Rooftop Solar solution reduces the net energy bills while shielding the retail spaces, large corporates, manufacturing units, and warehouses.
Convenience to Industrial Corporations
Industrialists are encouraged to fulfill their energy needs with renewable energy. Solar System in Pakistan facilitates the industrialists to utilize solar power plants at full potential and saves the incentives of tax exemptions and capital subsidies.
With the initiation of multiple flexible solar buying opportunities like Solar PPA, the cost of installing a solar system for industrialists has become zero. Therefore, now all industries can take the lucrative benefits of switching their energy supply to a clean, green, and sustainable solution.
The flexible availability of solar applications like rooftop solar has changed the power industry in many ways. Providing opportunities for flourishing production growth has altered the dynamics of the power industry.
End-to-End Solar Services for more significant benefits
The solar industry has been evolving continuously, and more companies are now shifting towards captive solar solutions. Shams Power is one of Pakistan’s leading solar providers, offering its comprehensive services in commercial and industrial sectors all over Pakistan for Rooftop, Ground-Mounted, and Car-Port solar installation under solar Purchase Power Agreements (PPA), thus diminishing any financial risk for businesses.
Shams Power leverages its flexible and premium services in the solar industry by offering unique solutions for every type of company. By offering a diverse range of solar power solutions, including Rooftop Ground-mounted, and carport solar structured Power Plants, our skilled team provides all-inclusive and reliable services to its clients, including the initial costs of design and finance procurement, installation, operations, and maintenance facilities. Our end-to-end solar assistance can be recognized by the significant commercial and industrial market entities adopting our solar PV systems.
With zero investments, hassle-free operation, and maintenance facility, the solar Purchase Power Agreement (PPA) operations are performed safely and securely. These Solar endeavors always aim to encourage environmental sustainability and decrease electricity costs by boosting the demand for Solar systems in Pakistan.
Solar energy is a natural renewable source of energy that is derived directly through the sun. The irradiance coming from the sun is converted into solar power, which is also an excellent profitable way to produce electricity. If we talk about Solar energy, it is transformed into three different processes: directly using photovoltaics; indirectly with the use of concentrated solar power through solar panels etc. or a combination of the two photovoltaics and concentrated solar power. With the sun being a direct, ample and readily available natural resource, there is a boom of solar energy companies in Pakistan providing energy-efficient solar power supply to industrial and commercial sectors.
Solar Energy in Pakistan
The sun is free and is an overly abundant resource available in Pakistan. According to the study shown by the World Bank (Report) on Solar Mapping, it states that more than 90% of Pakistan’s area receives 1,500 kWh/m² of irradiance and 75% of the land has an annual Global Horizontal Irradiance (GHI) of over 2,000 kWh/m².
However, solar energy and the process of converting direct sun heat into electricity do not come cheap and inexpensive. It is a one-time investment that requires high capital cost and operation management. Still, the return on investment is worth the price, not only in terms of renewable electricity production but also the reduced negative and harmful impact on the environment compared to burning non-renewable sources of energy like coal. Hence, it is where Solar PPA companies come into play.
Solar PPA Company Pakistan
Being a long-term contract arrangement, solar PPAs make solar energy in Pakistan even more accessible for business users, industries, and commercial sectors alike. With this type of agreement, customers get a reliable energy solution ranging from ten to twenty-five years. Moreover, solar electricity units are priced lower than the local utility rate for customers. Thus, in this type of agreement, repairs and maintenance, upkeep, and all other costs are borne by the solar energy provider. Therefore, the customer gets a discounted electricity rate with zero cost on maintenance and any operational hassle, resulting in a risk-free investment plan. Once the PPA contract term has reached its customer’s expiry, the solar power plant is then transferred to the customer free of cost.
What is a Solar PPA?
A Solar PPA or a Solar Purchase Power Agreement is a solar financing agreement between a customer and PPA solar companies or solar developers. According to this model, the customer does not incur the cost of a solar system setup. Under the PPA model, the customer will be entitled to all benefits, including design, materials, investment, and installation, all being taken care of by the developer. Moreover, the customer will benefit from using solar power generated electricity produced from solar panels. Solar electricity production would also be at a cheaper rate as compared to standard utility electricity bills.
What are the advantages of opting for Solar PPA?
Solar PPA is a revolution within the solar energy system globally and is now accessible within Pakistan too. With the main barrier to solar energy being capital-intensive, solar PPAs allow customers to enjoy solar energy without incurring operational and maintenance costs. As soon as the solar energy system is installed at the customers’ site, they can start reaping the benefits with a fixed discounted pricing of solar electricity.
1. Zero or Minimal Cost of Capital Cost
As mentioned before, the most significant advantage of Solar PPA is that you can enjoy all the benefits without worrying about any setup costs. The developer takes care of the entire process, making it hassle-free for the user. From planning, sizing, materials, area survey, procurement and installation, everything is taken care of by the solar PPA provider.
2. Decrease in Electricity or Utility Bill
Under the PPA model, the customer gets fixed electricity pricing for the entire contract duration. The contract’s final pricing is always lower than the price of the customer’s regular electricity bills. Utility electricity bills are also subject to inflation and unexpected price hikes, whereas, with solar renewable energy contracts, the pricing terms are fix in the agreement.
3. Low Risk Arrangement
Solar PPAs are a low-risk arrangement for the customers as the service provider controls the entire process end to end. With solar panel infrastructure on the premises, either in the form of a ground-mounted system, carport system or rooftop system, the customers always experience a seamless solar electricity delivery.
4. Increase in Property Valuation
Having a solar plant system installed on your property increases the property’s worth and value over time. Having your own power plant enables energy savings for a lifetime.
Shams Power for Solar PPA
If you are looking to have a Solar Purchase Power Agreement, Shams Power has the best tailor-made solutions for you. With the Purchase Power Agreement, Shams Power sets up the solar system on your commercial and business area for free, with zero investment and operation maintenance cost. Hence, with such an appealing offer and years of industrial experience, Shams Power has undoubtedly become one of Pakistan’s leading PPA solar companies. Shams Power is a joint venture between Pakistan’s leading energy companies PITCO and Orient Operating Company. Shams Power provides its customers with very reasonable and economically feasible solar priced power plant options to customers.
The Solar PPA at Shams Power offers agreements for up to 25 years with bespoke solutions, supporting clean and green energy without investing any capital, equipment or investment. With savings from day one, strong technical expertise, the backing of financially strong sponsors and no capital investment, Shams Power is the right option for anyone seeking solar solutions.
Shams Power is the first and only company in Pakistan with a Distributed Solar Generation License from NEPRA, which allows it to sell electricity legally in Pakistan.
