Solar energy is the most sustainable energy that is abundantly available on the planet and has the potential to match our daily needs. The Government of India is very supportive of Solar EPC companies, with the Ministry of Finance providing low-interest loans for private and public sectors.
So if you are thinking to start your own solar EPC company, here are the basics and two business models that are widely used in the industry to get you started.
What is an EPC company?
EPC stands for Engineering, Procurement, and Construction. As the name suggests, EPC companies combine the main three components of creating quality products and services. The major advantage here is that the company has full control over the production of everything.
EPC Business Models
EPC business models are a way to work with customers by offering them the equipment and services they require while outsourcing the high-value engineering and construction expertise. This makes for a great system, especially for solar businesses.
There are two common business models in India for EPC companies, namely the CAPEX model and the RESCO model.
In the CAPEX model, the buyer generally hires an EPC company as their prime contractor. Here, the company is in charge of management and procurement for its value chain. An excellent example of a leading solar company that uses this model is Sterling and Wilson Renewable Energy Private Ltd. Having over 90 years of experience in the industry, they are known as the largest global EPC and MEP contractors.
In the RESCO model, the company provides you with renewable energy which you can pay for as you consume. The customer does not hold ownership of the Solar Power Plant but the seller and buyer share roles for handling all equipment and personnel for their project.
Make the choice based on the kind of equipment and services you are interested in providing. Here’s your green signal for a green business!
Originally published at http://realestateandepc.wordpress.com on June 7, 2022.
No comments:
Post a Comment