In our previous blog post on solar based power rental, we saw how solar is rising as a potential fuel for rental power. In this post, we will focus on exploring the concept of solar-based rental power. Solar-based rental power can be of following forms:
- Solar Lease: The solar power system is installed at a client location for duration of 10-15 years (or more) and then the client pays a fixed monthly rent. The amount charged monthly is generally a percentage of savings achieved from switching to solar from the conventional power supply arrangement.
- Containerized/Mobile Hybrid Solution: In this case, the set up required to generate solar power is packaged in a container, which then can be easily installed at client’s location and supplemented by a diesel generator (which serves as back-up when required).
Since retail prices of diesel are rising across the globe, and also there is a rising environmental consciousness from climate change, these solar power-based solutions can serve as an easy substitute to diesel-based power solutions. There are companies in the USA, UAE, and India, which have solutions based on either or both of the concepts. In Saudi Arabia, many of the power rental companies believe they will witness a transformation towards solar-based power rental solutions within the next 5-7 years, at least partially.
The change to solar from diesel in power rental operations is expected to pick up pace; solar power generation is witnessing a change towards development and use of more efficient equipment, which can convert more solar radiation to power/electricity. With commercialization of higher efficiency equipment, this concept will start growing at a higher rate.
For more details on trends related to power rental, please go through our reports on the ‘North American Power Rental Market’ and ‘Indian Subcontinent Power Rental Market’. Our upcoming report on the ‘Middle East Power Rental Market’ will provide more insights to this concept of solar power rental, due to be published in early September. For more reports on the energy market, you can visit http://www.verifymarkets.com/collections/energy-power-equipment, or email us at info@verifymarkets.com.