As per World Economic Forums, Pakistan has taken a solid initiative to combat the energy crisis with renewable solutions like solar PV systems. For this reason, the government of Pakistan has eliminated 32.5% tax on the import of solar panels. Hence, the demand for solar solutions like rooftop solar structures has taken a boom in the commercial sector. Pakistan’s growing interest in clean energy has been encouraged by both solar energy providers and the government. Energy providers adopted lucrative solar investment options such as solar Power Purchase Agreements and solar leasing. Given the enormous benefits it could bring to the local economy, the government continuously backs their sustainable initiatives.
Commercial Solar Financing in Pakistan
The commercial sector in Pakistan is financed in many ways. Some of the preferable ones are solar power purchase agreements, solar leases, and solar loans. By understanding every business’s energy demands, needs, and requirements, companies can choose a suitable financing option for buying solar solutions.
Investment and operational costs of a solar system are cumbersome and form a salient barrier to solar adoption. Thus, there is a rise in the demand for Power Purchase Agreements where the energy provider finances, designs, installs and operates solar PV systems on the client’s property.
Under Solar PPA, the energy provider sells the power generated from the solar system at a discounted rate compared to the grid. The client pays zero cost for installation, operations, and maintenance of the plant and enjoys clean solar energy for the duration of the Power Purchase Agreement.
Hence, commercial rooftop solar installations in Pakistan have picked up demand to meet the corporates’ energy needs. Rooftop Solar Systems help the commercial and industrial (C&I) sectors lower the high cost of electricity. According to the Climate Scope 2020 by Bloomberg NEF, many overseas investors are also investing in Pakistan in their clean energy initiatives.
The Pakistan Foreign Investors Forum (PFIF) has also invested in three solar projects of about 150 MW in Dera Ismail Khan. Thus, the government of Pakistan is incorporating the concepts of upfront tariff, zero tax incentive, and long-term solar solutions in the solar energy sector.
It has liberated the market with a new approach to getting renewable energy from solar providers. Furthermore, with technological developments, the solar energy sector provides efficient solar PV systems on a large scale. As a result, many solar energy companies in Pakistan are now working with commercial entities to help them meet their energy needs.
Benefits of a PPA-based solar PV system for the commercial sector
- Long-term contract
- Zero financial investment
- Discounted electricity rates compared to the grid.
- Systematic Monitoring and Maintenance
- Environmentally friendly
- Carbon Free
Shams Power delivers solar solutions to the commercial sector.
Solar PPA provider Shams Power is providing solar initiatives to many famous commercial entities in Pakistan. Their initiative has helped many big names like Metro Cash and Carry, Packages Mall, AkzoNobel, and Nishat Motors Hyundai to go green with their Commercial Solar Financing option.
Get your business solarized with Pakistan’s Leading Experts.
Send your query to [email protected] or visit www.shamspower.com for more information.