Understanding the Solar BOOT Model: Shams Power’s Approach to Sustainable Energy
As Pakistan confronts growing energy shortages, rising electricity costs, and increasing environmental concerns, businesses—especially in the industrial and commercial sectors—are searching for reliable, affordable, and sustainable energy solutions. Shams Power has emerged as a trailblazer by introducing the Solar BOOT (Build-Own-Operate-Transfer) model in Pakistan. Their approach combines innovation in financing, technical expertise, and long-term sustainability to help industrial clients reduce overheads while transitioning to clean energy.
What Is the Solar BOOT Model?
The BOOT model stands for Build-Own-Operate-Transfer, a framework where Shams Power:
Builds a solar energy system (rooftop Solar or ground-mount) on the client’s premises without any upfront cost to the customer.
Owns and operates the system, being responsible for its maintenance, performance, and financing.
Transfers ownership of the system to the customer—typically after a long-term Power Purchase Agreement (PPA) of 12–25 years.
This ensures clients avoid CAPEX, O&M responsibilities, and performance risk during the agreement period—addressing common barriers to solar adoption.
Why Shams Power Is Leading the Way
Capital-Free Installation
By shouldering all project costs—including design, financing, procurement, and installation—Shams Power eliminates financial hurdles for industrial clients, enabling immediate savings from day one.
Performance Risk Covered
Instead of clients managing technical risks, Shams Power guarantees performance and handles maintenance throughout the PPA term, ensuring consistent energy output and ROI.
Long-Term Stability & Transfer
Once the agreement ends, ownership of the solar assets transfers to the client. From then on, energy generation becomes cost-free, maximising long-term financial gain.
Custom Turnkey Solutions
Shams Power offers tailored engineering, design, procurement, and finance services for industrial, commercial, and institutional clients—delivering bespoke solar BOOT solutions.
Proven Financial Backing
With strong ties to Bank Alfalah and GuarantCo/PIDG, Shams secured a PKR 2 billion facility (approx. USD 11.3 million) to develop 21 MW of rooftop and ground-mounted solar projects—showcasing confidence in the model's replicability and scalability.
Regulatory & Licensing Strength
Shams Power obtained NEPRA’s distribution license in 2019, positioning it among Pakistan's first licensed solar PPA providers—enabling them to sell power directly in distributed solar markets.
Impact & Benefits for Industrial Sectors
Cost Reduction
With no capital investment required, industrial clients start saving through reduced electricity bills immediately—offering much-needed relief amid escalating power tariffs.
Improved Reliability
Solar at the point of consumption reduces grid transmission losses and offers energy independence—critical during peak demand and load-shedding periods.
Sustainability & Carbon Credits
Solar systems mitigate carbon emissions and can generate revenue through carbon credits—enabling companies to fund sustainability initiatives.
Industrial Growth & Local Employment
Projects under this model create local jobs, especially in operations and maintenance. Shams is also empowering female engineers through its Solar EmpowHer program.
Scalability & Replicability
With secured financing and technical vision, Shams aims to scale its distributed solar portfolio across Pakistan's C&I segments, serving clients of all sizes.
How It Works: From Consultation to Transfer
This turnkey approach ensures clients—from small factories to multinational corporations—benefit without financial or operational burdens.
Real-World Applications in Pakistan
Shams Power has successfully implemented BOOT solar plants for brands like:
Metro Cash & Carry Pakistan
Coca-Cola
Hyundai Nishat Motors
Universities & hospitals across Pakistan.
These projects highlight how companies can reduce energy costs, enhance resilience, and meet ESG targets—all under a zero-upfront-investment model.
FAQs
Q1. What makes BOOT different from traditional solar power models?
Ans: The BOOT model eliminates financial and operational burdens from the client. Unlike conventional CAPEX-driven installations or leasing models, BOOT provides full system installation, O&M, and risk management—culminating in a transfer of ownership, freeing the client from long-term investments.
Q2. How long does the BOOT agreement last, and what happens at the end?
Ans: Typically, BOOT PPAs run 12–25 years. Shams Power handles financing and operations during this period. Upon expiry, the solar assets are transferred to the client at no additional cost, and they benefit from decades of free solar energy thereafter.
Conclusion
Shams Power’s Solar BOOT model is transforming the industrial energy landscape in Pakistan. By shouldering financial risk and project delivery through a bespoke, turnkey solution, they make sustainable energy accessible to businesses without upfront investment. With strong partnerships, regulatory approval, and technical excellence, Shams Power’s approach aligns with Pakistan’s push toward solar growth—currently adding record capacity to the grid. Whether you're a manufacturer, corporate entity, or institution, BOOT offers an intelligent path to energy savings, sustainability, and operational resilience.
Comments
Post a Comment