Dawood Hercules Group’s Reon Energy has started offering solar-based electricity sale to business owners and industrial concerns generated at client’s property.
The company is offering ‘energy sale’ a financial agreement where the developer arranges for the design, financing, and installing the solar generation project at the client’s property at zero or low upfront cost.
The energy generated from the solution is sold to the customer at an agreed upon rate usually lower than that of the local utility’s rate. At the end of the financial term, the client can choose to buy or extend the contract.
Inam ur Rahman, CEO of Reon Energy Limited, said that energy sale model was a third party ownership model that had been applied successfully in the United States and other developed markets.
“Such models are a tremendous opportunity for new businesses and energy intensive manufacturing facilities. Pakistan has an ample amount of sunshine that can be utilized more effectively through such financing mechanisms,” he said. Energy expenses have a direct hit on a business’s profitability and the effect gets multiplied with the energy shortfall reaching up to 8000 MW during peak load times.
Pakistan being located at the Sun Belt undoubtedly offers a wonderful opportunity to harness solar energy that can bear free energy for 25 years other than the installation cost at the start of the project and minimal maintenance expenses along the way. Reon’s installation at IBL building Shahrah-e-Faisal is a part of its energy sale agreement.