Solarized Apartments

Solarized Apartments:


Image result for solar rooftop in apartments picturesThe Bangalore Apartment Federation (BAF) is planning to set up solar rooftop, on approximately 1,000 apartments in the next two years of time. Apartments have been at the forefront of sustainability by efficiently managing resources like water, waste & energy to help build a green, sustainable & livable Bengaluru. They are opting OPEX model, where the vendor will invest initially for the set-up, and charge the apartment on a monthly basis. This way, apartment owners need not worry about the initial investment.

The charges generally work out to be cheaper than what they pay BESCOM, which charges Rs. 7.65 to Rs. 8.00 per unit. With solarpanels, it costs Rs.6.00 to Rs.6.5 per unit.

Who is Bangalore Association Federation (BAF):
If you are a owner or tenant living in Bangalore Apartment Federation, you can join this group
https://apartmentadda.com/bangalore-apartments-federation/home and

  • Participate in our online discussions.
  • Receive Notices and important broadcasts from Association - by email and sms.
  • View & contribute to our internal Vendor List.
  • Post your Buy/Sell/Rent Notices.
  • Raise complaints to be serviced by the Association Office.
  • View your Dues to the Association.
  • Get in touch with any Resident/Association member, from wherever you are. 

What is OPEX Model ( Operational Expenditure) : In OPEX model, the solar PV installed at our premises is NOT owned by us but by a third-party, which is also responsible for its maintenance. However we need to enter into an agreement with that party to purchase and consume all the power generated by PV for a long term period (15-20 years). Thus, under OPEX, a third party will install PV at our home and maintain it, we have to buy energy produced by it.

This OPEX model is famous in many countries including US where half of rooftop solar PV installations are owned by OPEX developers. It is successful model internationally and remains so in India also as the consumer has not to incur upfront capital costs.

Issues and Challenges: This model is getting highly popular in India and many OPEX developers in the country are flourishing. However, there are some issues which need to be addressed. Biggest issue are of “contract enforceability” and “customer default”. The contracts made are usually for longer period and have a risk of default from consumer’s end and also possibility of litigations. Thus, there is a need of proper regulatory framework in the country.

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