Open Access Solar - Group Captive
Open Access solar offers an excellent opportunity for large electricity consumers to not only reduce costs but also advance their Renewable Purchase Obligations (RPOs) and long-term energy transition objectives.
The Group-Captive Model Explained
In the Group-Captive model, a solar project is specifically developed for the shared use of multiple corporate buyers. Under this arrangement, Insolation Energy establishes a Special Purpose Vehicle (SPV), where the group of buyers collectively holds a 26% equity stake. Together, these buyers must consume at least 51% of the power generated. A Power Purchase Agreement (PPA) ensures transparent electricity tariffs for a duration of 15 to 25 years.
Why Corporates Prefer Group Captive
The Group-Captive model is gaining traction among businesses due to its compelling financial and operational advantages
- Significant Cost Savings: Electricity tariffs under this model are 25-40% lower than grid rates.
- Minimal Capital Investment: Corporates can access affordable solar power without hefty upfront costs.
- Energy Transition: It provides an easy pathway for businesses to transition to renewable energy sources.
By adopting the Group-Captive model, corporates can not only achieve substantial savings but also take a major step toward sustainable energy procurement and meeting their green energy goals.
Why Choose the ‘Group Captive’ Model under Open Access Solar?
The Group Captive model offers a smart and strategic way for large power consumers to embrace renewable energy with minimal risk and maximum benefits. Here's why this model is worth considering:
1.Guaranteed Cost Savings
- Enjoy 25-40% lower electricity costs per unit compared to grid tariffs.
- Long-term price clarity through fixed tariffs for up to 25 years.
2.Minimal Capital Investment
- A 26% equity contribution by the group ensures eligibility for a cross-subsidy surcharge waiver.
- Insolation Energy (IE) will invest in the remaining 74% equity, minimizing upfront costs for buyers.
3.Surcharge Waivers
- enefit from waivers on additional surcharges under the 'Captive' and 'Group Captive' models, further reducing costs
4.Hassle-Free Energy Transition
- No need for technical expertise—IE manages the entire process, from setting up to servicing the solar asset, ensuring a seamless transition.
5.Higher Renewable Energy Utilization
- Meet 70-80% of your energy requirements from renewables, surpassing the limits typically imposed by on-site solar installations.
Insolation Energy is establishing large-scale solar parks across key states, including gujarat and other states. These off-site solar parks supply clean, renewable energy to our clients by leveraging the
state-owned transmission network for efficient electricity wheeling.