We have tied up with investors to offer the standard RESCO and Co-RESCO (or Collaborative RESCO) model in Karnataka for Commercial and Industrial units. The capacity range is from 20kWp to 1MWp.
The Renewable energy service company (RESCO) model is also called the OPEX (Operating Expenditure) or BOOT ((Build Own Operate Transfer) model. It is a zero-investment model wherein our Investor will put in his money and install a solar power plant on top of a factory with EcoSoch’s help. The solar energy generated by the solar plant is then sold to the factory Owner at a rate less than the DISCOM rate for a tenure of 15-25 years thus resulting in savings for the factory Owner. Our Investor will maintain the solar plant with the help of EcoSoch during the tenure and will transfer the ownership of the plant to the factory Owner at the end of the tenure.
In a Co-RESCO model, we enable building Owners (who have leased/rented out their premises) to put up solar plants and earn money without any upfront investment from their end. Our Investor will invest in the solar plant and through multiple Power Purchase Agreements (PPAs) between various stakeholders, it will be a “win-win-win” situation.
For both of these models, the only major requirement is that the premises should be operating throughout the year (ideally 24×7) and have considerable loads so that all the solar energy is used within the premises itself. Essentially, this model only works under the Captive consumption mode in Karnataka.
If you are a factory Owner, know or encounter such Building Owners that would be interested in either RESCO or Co-RESCO model, please let us know and we can explore executing the projects together. The definition of a Co-RESCO or Collaborative RESCO model is further given below:
Co-RESCO model: Building Owner with a single Tenant
Let’s say that there is already a Commercial/Industrial building which has only a single DISCOM meter and only one Tenant. In this case, we can have a tie-up with the building Owner and set up the system under Co-RESCO. The Tenant is presently paying Rs 10/unit to the DISCOM. Our investor will install the system and sell the energy at Rs 8/unit to the Owner and the Owner in turn sells the same energy to Tenant at Rs 9/unit through an internal arrangement. Thus, the Tenant has a saving of Rs 1/unit (10 – 9) when compared to DISCOM price and the Owner makes a profit of Rs 1/unit (9 – 8). The main advantage of the Co-RESCO model for the Owner is that he can attract and retain the Tenant since the operating expense of the Tenant is reduced. Another advantage – sale of electricity is not taxable and we have clarified this with our investors.
The Co-RESCO model will not work out if there are multiple tenants in the same building. However, if it is a new under construction building, then this model could work out.
Note: We can also take up projects outside Karnataka on a case to case basis.