The solar power model for businesses is an effective solution to help businesses save electricity costs, protect the environment and enhance brand reputation. This article will focus on sharing solar power models for businesses and the benefits they bring. From there, businesses will have more accurate considerations in the process of implementing their solar power solutions.
First, please clarify what the concept of solar power is for you and VREnergy? And learn about 3 popular solar power models for businesses.
What is solar power? 3 Solar power models for businesses
Many businesses mistakenly believe that just having a solar power system to generate electricity is enough. However, there will be many different types and models of solar power, requiring careful analysis of needs, benefits and appropriate solutions for each specific business.
Currently on the market there are many diverse solar power models with many deployment scales. The important point is which solar power model does a business need to use so that the system produces optimal electricity output, thereby bringing economic efficiency to the business?
Many leading businesses have been applying the solar power model, especially those with large factory roof areas. More specifically, businesses will have 3 solar power models to choose from: EPC , ESCO and PPA .
Each model will have its own characteristics depending on the need to save costs, financial capacity and purpose of use. Now let’s analyze each model in detail.
The EPC (Engineering, Procurement, and Construction) model is a model in which the investor hires an EPC contractor to perform all tasks from design, material procurement, installation to acceptance and handover of the system. solar power system.
In the EPC model, the investor only needs to sign a contract with the EPC contractor and pay according to construction progress. The EPC contractor will be responsible for all work related to the solar power system, including:
- Design : The EPC contractor will design the solar power system in accordance with the needs and capabilities of the investor.
- Procurement of solar power supplies : The EPC contractor will purchase the necessary materials for the solar power system from reputable suppliers.
- Installation : The EPC contractor will carry out the installation of the solar power system in accordance with the design and technical standards.
- Acceptance and handover : The EPC contractor will carry out acceptance of the solar power system and hand over to the investor.
The EPC model is a suitable choice for businesses that need to install large capacity solar power systems and do not have technical expertise in solar power. This model is also suitable for investors who want to focus on their main business activities.
The ESCO (Energy Service Company) model is an energy service provision model, in which an energy service company will implement energy saving projects for its customers. The company will be responsible for the entire project, from design, material procurement, installation, maintenance and operation.
In the ESCO model, businesses will not need to invest initial capital for a solar power project . Instead, customers will pay ESCO a monthly amount for the duration of the contract. This amount will cover O&M operating costs and system maintenance, as well as ESCO’s profits.
Finally, this model is a suitable choice for customers who need to save energy but cannot afford to invest initial capital. This model is also suitable for customers who want to save time and effort in maintaining and operating energy-saving systems.
The PPA (Power Purchase Agreement) model is a direct electricity purchase and sale model between electricity producers (producers) and electricity consumers (consumers). In this model, the electricity producer will build and operate the solar power system , then sell electricity to electricity consumers at the price agreed in the contract.
In the PPA model, electricity consumers will not need to invest initial capital for the solar power system. Instead, the business will pay the electricity producer a monthly amount throughout the contract period. This amount will cover the costs of operating and maintaining the system, as well as the electricity producer’s profits.
We can apply the PPA model as an effective alternative to the EPC and ESCO models. This model helps electricity consuming businesses save initial investment costs, save energy costs and minimize risks.
How to choose a solar power model for your business
Each solar power model solves a unique problem for businesses. For example, if a business owner has a large initial capital and wants to own a solar power system, the solar power EPC general contractor model is the appropriate choice. On the contrary, if the business owner wants to save initial costs and does not want to own a solar power system, the ESCO or PPA model is the right choice.
When choosing a solar power model, we will synthesize it based on 3 factors: need to save electricity , financial ability , and purpose of use .
- The need to save energy
Before choosing a solar power model, you need to determine what your electricity needs are. If you have a large need for electricity, you need to install a solar power system with a large capacity to meet your needs. On the contrary, if you have a small need for electricity, you can install a solar power system with a smaller capacity to save investment costs.
- Financial capability
Investment cost for a solar power system is an important factor to consider. Currently, investment costs for solar power systems range from 15 million VND to 20 million VND per kWp for households. The cost for a business’s solar power system will range from 10 to 15 million for a system with large capacity.
Therefore, you need to consider your financial capacity to choose the appropriate solar power model to achieve economic efficiency.
Intended use is also an important factor to consider when choosing a solar power model. If you want to own a solar power system for long-term use, then you can choose the EPC model. If you want to save on initial investment costs, you can choose the ESCO or PPA model.
Besides, solar power systems are a great way to demonstrate a business’s commitment to the environment. Solar power is a clean and renewable energy source, helping to reduce greenhouse gas emissions and protect the environment.
Combining the three factors, businesses will have a consideration to have an appropriate approach.
An important goal in choosing a solar power model for a business is how to convert the energy system from traditional sources to renewable energy sources, especially solar power. This is an important process to save costs and reduce environmental impact.
For example, when a business decides to deploy their first solar power system, they can create a detailed plan that includes choosing the type of model that best suits their needs, as well as taking steps to installation and technical inspection. For finances, it is possible to calculate the initial investments and expected profits from using solar power.
In an ideal situation, when businesses can implement this model effectively, they will save significantly on energy costs and reduce their environmental impact. From there, they can optimize their energy sources and contribute to environmental protection, while increasing sustainable profits for their businesses.
In the current context, when the use of clean energy sources, especially solar power, becomes popular, and is a sustainable business strategy for businesses. That’s why every business needs to carefully consider implementing a solar power system and integrating it into their operations.
Hopefully, this article will help you better understand the need to use solar power in your business, the benefits it brings and effective development solutions. Don’t forget to continue following VREnergy to stay up to date with the latest information on using solar power in your business and how to optimize it for your maximum benefit!