According to a statement made by Ko Chuan Zheng, a Co-founder and C.E.O of Plus Solar Systems Sdn. Bhd., any business that plans on saving their energy consumption costs must do so by use of power purchase agreement. The companies will be able to produce electricity from solar panels.
There is a structural design of a financial option called P.P.A., which permits businesses to buy electricity at reduced tariff costs from solar energy entities like Plus Solar. The companies will use zero upfront price to erect solar power structure by using the design.
The structural design is of good importance, more so to those businesses planning to reduce operational costs during these hard times. Ko was able to notice the demand during a conversation with his customers and industrial workers. During the dialogue, the customers wondered about the methods they will save more energy without incurring extra costs. Ko and his group was moved by the needs of their clients and took the P.P.A. to the market. He majored on promoting the P.P.A. to his customers during and after the Movement Control Order (MCO).
Those businesses that consume more energy can change their minds and think of using Solar P.P.A. The discount provided on the electricity tariff cost relies on the size of one’s rooftop, the capacity of the solar power structure and the rate at which energy is consumed, among other factors.
Businesses will have to buy a portion of electricity from electricity distribution entities because the P.P.A. structure does not come with storage of batteries. That is the remainder of electricity demand, which the solar panels fail to meet.
The lease period of P.P.A. generally goes between 15 to 25 years, and each lease is alterable to suit the consumer’s taste. During the lease period, Plus Solar will be accountable for the maintenance of the solar power structure. After the end of the lease period, the solar power structure now belongs to the business.
Those methods are sufficient for whatever sort of business. In a statement, Ko said that P.P.A. is appropriate to those businesses that do not want to encounter an upfront price or develop fears of how to maintain the solar power structures.
Concerning the purchase of solar power structures with no outstanding conditions, those entities with the ability to buy can opt for the P.P.A. solution and go for the Green Investment Tax Allowance (GITA). They can their workforce carrying out services on solar power structures.
Those businesses can borrow money from banks. The advantage is that Ko’s firm works with over five banks. Those businesses that are not liable for any loan can go for P.P.A. choice.