Solar Power Plant on Lease
Setting up a Solar Power Plants requires huge upfront capital investment. This poses a significant challenge to MSME (Micro, Small and Medium Enterprises). To solve this problem, concept of lease is introduced. Under this scheme, plant is owned by the institution which finances, operates and maintains it during the term of lease. The User Company pays against power generated by the power plant. This is a win-win for both.
Difference between Loan and Lease
Leased Solar Plant : Ownership of solar plant lies with the company offering the plant on lease, not with the user company. User company pays, usage fee ( or rent) against usage of the same. Leasing is used as a tool to lower upfront cost.
Solar Plant with Loan : User company takes loan to buy the Solar Plant. Ownership is with user company, after full repayment of loan amount. Loan is used as a tool to acquire complete ownership.
I have electricity bill of Rs50'000.00 per month (or more). Can I get the Solar Plant installed without investing my own money into it ?
Yes, certainly. If you have power consumption of Rs50'000.00 per month (or more) and also have space to install the solar plant, you pass the first criterion. Second criterion is your financial health. To asses your financial health, we need your last 3-years ITR return, financial statements, KYC documents of all the partners and any other document prescribed by financial institution.
How will leasing company recover their investment from us ?
Leasing company will charge you against electricity generated by the power plant. You will have to pay the leasing company as per rate agreed upon for the actual electricity generated by the plant.
Who will take care of the Leased Solar Plant ?
During the tenure of the Lease, Solar Plant will be maintained by the financial institution who has given you the plant on lease. You only have to pay against electricity generated by the plant. You are not liable for the maintenance of the Solar Plant.
What will happen at End of Lease term ?
Usually these financial institutions hands-it-over to you against nominal charge at end of the lease term. Once it is handed over to you, operation and maintenance of plant will be your responsibility.
How long is the lease term of Solar Plant ?
Well, it depends upon various factors, such as per unit rate of electricity, cost of plant, cost of fund, solar irradiation of the site etc. You may expect the lease term somewhere between 10 to 15-years.
Who may I approach to get the Solar Plant on Lease?
You may approach KHUSHILAL POWER GENERATION LLP (or anyone else offering this service) to secure the Solar Plant on Lease for your business.
