Discom-led RESCO model is a version of the RESCO model in the residential sector where the discoms will undertake facilitation and payment collection.
Benefits to discoms
- Discoms could have an additional revenue stream with the collection fee charged for billing and payment collection.
Benefits to consumers
- Those consumers who cannot afford to pay the upfront cost can buy solar energy on a monthly basis and get the subsequent benefits.
- Aggregated procurement by the discom can ensure better quality of installation.
- Regular operations and maintenance undertaken by the developer ensures better performance of the system.
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.
Source : Utility-centric Business Models for Rooftop Solar Models (USAID, 2008)
Target Consumer SegmentConsumers with exclusive roof access. Those consumers who cannot bear the upfront cost of solar system installation
LocationResidential building, office spaces and other buildings with exclusive roof access
Role of DiscomPayment collection, facilitation
Level of involvement by utilityLow
Need for partnershipsLow
Revenue to DISCOMLow
Risk to UtilityMedium