Solar Leasing in India: At glance
The advent of solar leasing has been remarkable. This system has created vast opportunities for the developers. Not much known to the consumers this model can be helpful in transforming the Indian solar market.Talking about solar leasing in India, it is found that that a very less number of people are aware of the schemes.Measures have to be taken to promote these kind of schemes.
In solar leasing someone else (developer) pays for the equipment, instead you have to only pay a monthly rental. Unlike PPA where you have the upfront cost of installing the panels , in easing that upfront cost can be avoided and get started with little money invested. Figuring out if a solar lease is worthwhile is easy: if the monthly lease payment is less than what you’re currently paying per month for electricity, leasing probably makes economic sense for you. You’ll be able to start saving money from the first day your panels are installed, for little to no upfront investment.
In India mainly you have 2 to 3 plans for solar leasing which again depends from state –state policies.For instance Karnataka has come up with a solar leasing scheme, which involves renting of Residential Solar Roofs to the Developers. These solar developers will be allowed to install a Solar pv plant on the rented Residential rooftop and the developer will have the rights to sell the electricity to the grid. In Monthly rental (EMI) plan the consumer pays a monthly rental for the utilization of solar generated electricity.Another is Single payment plan where a large amount is paid in lump sum instead of monthly rentals to lease out the pv system.
Solar leasing is best suited for people who largely migrate from one city to other,and does not stay for too long in one home. If at all you plan to stay in your home a long time and can afford the up-front cost of solar panels, it may may more financial sense to buy them yourself because the total return on your investment is likely going to be greater.In the coming years the middle class population in India could touch 250 million.And leasing models could be one handy model which can be used to tap this segment.