The agreement will have four parties, electricity department, Crest, private company and consumers. It will be the legal document of mutual consent for the RESCO model.
The draft agreement has already been approved by the electricity department. It will be presented before the JERC on February 18 for formal approval to start installation of solar panels on private houses through the RESCO model.
“The move of an agreement among all the four entities is crucial to decide power charges for the beneficiary, role of private company and installation charges for the electricity department. The central government has earmarked optimum funds under the budget to promote solar energy in the city,” an official said. Under the RESCO model, private companies will install solar-energy plants on private property, and in return, charge the building owner a much lower tariff than the normal electricity rate for about 15 years (or whatever period is agreed in the tender). The house owner will then get the plant. The building owner and the private company will sign a deal.
The plant will be installed under the net metering mode, whereby a solar-energy unit is connected to the building’s electricity system and the solar energy exported to the grid is adjusted in terms of units imported from the electricity department during a billing cycle. The maintenance of the equipment will be done by the private company.
Read More: To Boost Resco Model, Solar Power Pact Ready | Chandigarh News