Solar for Zero Investment:
Yellow Haze functions as one stop solution for solar power projects and provide Institutional, Commercial and Industrial customers with an option of going to solar without any investment. Zero Investment Solar plants are provided through the Build Own Operate Transfer (BOOT) model where the customer can easily install Solar PV System at their premises by just signing a PPA Agreement (Power Purchase Agreement) with the investor (us).
Basic Features of the BOOT Model:
The basic tenant of BOOT Model is the PPA agreement signed between Consumer and Investor (our team). Under the PPA, the consumer agrees to purchase electricity produced by the solar plant at decided tariff-rate for the PPA term (duration of PPA contract).
- Zero Investment: Solar plants are set up entirely on our own cost.
- Zero Trouble: We also take care of design, engineering, procurement, installation & commissioning of the solar plant.
- Zero Risk: You only pay for electricity generated by our solar plants. When there is no generation, you don’t have to pay anything. Hence, entire performance risk is borne by us.
- Zero Overheads: The plants are also operated and maintained by us throughout the project term.
- Guaranteed profits: The PPA price is 30-40 percent less than grid price, hence cost savings on electricity is guaranteed. Additionally, as our price is fixed consumer has security against any future increase in electricity prices by grid.
- Zero Cost Plant: At the end of PPA term, the plant is transferred to the client at free of cost (usually Rs 1). As the minimum life of the solar plant is 25 years, the client usually enjoys at least 5-10 years of free electricity from the solar plant.
Switch to Solar without any Investment
Why Go for Zero Investment Solar:
While Zero investment, is the main motivation, there are also considerable other benefits that make BOOT model a win-win model for all.
- Optimization of EPC cost: Individually each project size is small but as we have a large number of projects, it allows us to strategic partnerships and leverage in procurement which translates to lowering of EPC costs, resulting in additional lower tariffs.
- Economy of scale in operation and maintenance costs: Power production, even through solar requires certain specific operations and maintenance processes, which incur costs. At times, these costs are unaffordable for smaller projects but because of our portfolio, our per over-head costs are optimized.
- Advantages of specialization: Our dedication to power production through solar has brought in specialization of these processes, as a result, your plant is always maintained at optimum performance and prime condition.
- Auto-upgrade to Advance technology: Solar technology is constantly upgrading, however, new technologies come at extra cost and become unsustainable for small projects. BOOT models offers an opportunity to consumers as all these up-gradation to new technologies takes place at zero cost.
Solar for Zero Investment: PPA Models
The PPA model can be of two types depending on the location of Solar Plants.
- On-Site: Solar Plant are located on the rooftop of Consumer and electricity produced from the solar plants gets used by the client directly.
- Off- Site: This facility is only available for Open-Access customers now. Here, we setup plant at a distant location. The electricity produced from the plants gets transported through the distribution network to client location and client pays for the electricity units consumed at site as per the agreed Open-Access PPA tariff.