ZIP

( Zero Investment Plan )

www.xpanzenergy.com

Setting up of Solar Power Plant under “ZERO INVESTMENT PLAN (ZIP)”

We are introducing a very interesting model of “ZERO INVESTMENT PLAN (ZIP)” for Setting-Up of Solar Power Plants for MSME sector, where power requirement is almost 24×7. This ZIP model is specially developed for the MSME sector of India, where we have kept in mind the growth potential in this sector as well as issue of scarcity of desired financial support.

The outline of this ZIP is as follows:

+ Target Sector

Industries, Commercial Buildings, Mall s, Hospitals, Auto show-rooms/service stations, ware-house, Cold Storage’s, Hotels, Hatcheries, Mushroom Farms, Educational/Training Institutes including Schools, Yoga Centers, Ashrams, etc.

+ Target Capacity

Under ZIP we are concentrating on those entities where the sanction Load is ranging from 100 kW to 500.

+ Free Installation

Our Company will do all the preliminary exercise of preparing of Drawing, Design of Solar Plant, Procurement of Tier-I technical y sound and sustainable solar equipment, installation, Testing and commissioning of  the solar  power  plant. Beside this our company will take care of all the approvals and clearances from DIS COM.

+ Free O&M

Our company will operate & maintain the solar plant for the term  of PPA. So it is virtually Zero Operation and Maintenance (O&M) expenditure by the Client over the PPA term.

+ Free Solar Power with huge savings

Since we are using Tier I grade solar panels having minimum life expectancy of 25 years, which will ensure that Client will get free solar power for remaining life of the Solar Power Plant, say for remaining 13-15 years.

+ Power Purchase Agreement

Our Company will enter into a very simple “Power Purchase Agreement” (PPA) with the Client for a term of 10-12 years and there is no credit rating requirement.

Discounted Solar Tariff

Client has to pay the agreed Discounted Solar Tariff to our company,  which will be at minimum discount of 10%. It means, if client is  paying a  power tariff of say Rs. 8 per unit then he has to pay “Solar Tariff” of Rs. 7.20 per unit to our company for the agreed PPA term.

+ Target Area

Haryana, Uttar Pradesh, Rajasthan,  Maharashtra & other states where the power tarif rates are over Rs.7 per unit.

+ Zero Capital requirement by the Client

Under this ZIP, client need not to invest any amount, rather our company will invest for setting up of the Solar Power

+ Free O&M

Our company will operate & maintain the solar plant for the term of So it is virtually Zero Operation and Maintenance (O&M) expenditure by the Client over the PPA term.

+ Target Area Transfer

Solar Power Plant will be transfer free of cost to client on conclusion of the contractual term (i.e. “Save-to-Own” model).

+ Zero Capital requirement by the Client

Under this ZIP, client need not to invest any amount, rather our company will invest for setting up of the Solar Power

+ Solar Tariff

Our Company will recover its investment by charging monthly “Solar Tariff” during PPA term from Client, which will be 10%-12% below the normal Electricity Tariff, which client is paying to DISCOM.

In a Nutshell we can say that we are taking all the financial, Technical & Political Risks of our Client.

Advantages of ZIP are as under

Immediate Savings to the Client from day one by substituting expensive grid and/or diesel power with cheaper solar power.

contractual term of 10-12 years It’s a unique Short Term solutions for MSME (i.e. PPA of 10-12 Years), whereas our competitors are offering PPA of 25

Discount rate of 10-12% will remain same over a PPA term. This means that in case Tariff rate goes down in future the client wll not be at Client will get the same 10% discount. (Refer Annexure-1 for illustration). So basically y this ZIP negate the effects of fluctuation in the electricity charges over a PPA term

ÇÅ Reduction in overall carbon footprint of the Client and their Building will be in the category of “Green Building” and marketing can be done by saying that our product is produced and preserved through “Green Energy”.

Illustration to show the Solar Tariff in different scenario

Sl. No Particulars At Present In Future
Rate per unit If tariff rates reduced to If tariff rates increased to
A Discom’s Tariff Rate Rs. 8.00 Rs. 7.00 Rs. 9.00
B Discount offered 10% Rs. 0.80 Rs. 0.70 Rs. 0.90
C Solar Tariff ( A-B ) Rs. 7.20 Rs. 6.30 Rs. 8.20