In this model, the consumers are provided with the capital required for the solar rooftop system as a loan by the developer or a third-party lender. Consumers can repay their loan with monthly electricity bill.
Benefits to discoms
- Higher adoption of rooftop solar by consumers in the subsidised categories can lead to considerable reduction in cross-subsidy burden for the discoms.
Benefits to consumers
- Consumers in the low-paying categories who did not have access to cheap credit are able to install systems under the model.
- Aggregated procurement by the discom can ensure better quality of installation.
Benefits to developers
- Developers get access to new customer segments who could not afford rooftop solar system otherwise.
- Identification and aggregation of consumers by the discoms leads to reduced customer acquisition and business development costs for the developers.
- On-bill payment collection reduces the risk of payment default.
Target Consumer SegmentConsumers with exclusive roof access and cannot bear the upfront cost of solar system installation
Role of DiscomAggregated procurement, payment collection
Level of involvement by utilityMedium
Need for partnershipsHigh
Revenue to DISCOMMedium
Risk to UtilityHigh