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.
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