Take the leap, invest in Solar and do it NOW!

"You may delay, but time will not" – Benjamin Franklin. 

This phrase is probably overused, but it's true - Time is money. And when you let time run out, and so does the money! Let's keep this in mind before I begin today's blog.

During the lockdown, our team at Artha Energy Resources has witnessed a renewed interest in our OPEX/RESCO model-based Solar PV system solutions.  

Clients from across various spectrums of industries have been looking at their cost structure to figure ways to make cutbacks. Solar power has found prominence in these discussions.  

Even though we are glad that many Executives and business owners are ready to have these serious discussions, there have been delays in execution and implementations.  

In my attempt to understand why certain businesses were executing faster, while others remained non-committal even after completing technical and financial feasibility, I went through over a hundred deals the Artha Energy team has worked on previously.  

I saw that businesses with prior experience of a solar installation or who have done their research and seen a few solar plants have executed PO's and PPA's within a couple of months of initiating discussions.  

However, some businesses held back on taking the final decision. Some of the most common reasons were as follows:  

Even though newer customers decided to delay signing, some clients we had approached a couple of years ago approached us again and signed on at a rapid pace! During my discussions with one such client, we brainstormed on the cost impact of this delay.

Here are some of the basic details of the project: 

Since, this project was delayed for one year, we calculated the notional savings loss for 1 year at Rs 32.76 Lakh and computed its effect on the PPA tariff when the loss was spread over multiple time periods.

Hence, even though we charge Rs 3.75 per unit, adding the cost of delay for one year, amounted to a notional cost of 0.30 paise. Hence, power was being procured at Rs 4.05 only because of a delay! This was a fascinating data point that most businesses fail to account for when looking at projects.  

This proves that Solar Projects commissioned using the RESCO model, that helps consumers save costs with zero investments, get more expensive simply because the management delays decision-making.  

Now does it make sense? 

Delay = time running out = money wasted 

If you are a consumer and have questions about the RESCO/OPEX model or would like to get a quote, kindly drop us an email at [email protected], we would be glad to be of assistance!