Anchored procurement–EPC contractor model is a CAPEX-based model where the discom plays the role of an EPC contractor. The discom aggregates the demand, estimates rooftop capacity of all the potential consumers, procures the rooftop system, and provides assistance in installation.
Benefits to discoms
- Margin from the EPC contract can provide discoms with additional source of revenue.
Benefits to consumers
- Aggregated procurement by the discom can ensure better quality of installation.
- With economies of scale from aggregated procurement, consumers can benefit from lower costs for the system.
Benefits to Developers
- Identification and aggregation of consumers by the discoms leads to reduced customer acquisition and business development costs for the developers.
- Developers can also benefit from the aggregated capacity leading to reduced transactional costs and economies of scale. This existence of symmetric information lowers the risk of developers’ investment in the project.
- Reduced business risk for the developer as the EPC contract is with the discom.
Source : Utility-centric Business Models for Rooftop Solar Models (USAID, 2008)
Target Consumer SegmentConsumers with exclusive roof access
Role of DiscomAggregated procurement, facilitation
Level of involvement by utilityMedium
Need for partnershipsHigh
Revenue to DISCOMMedium
Risk to UtilityMedium