Shams Power: Benefits of a Rooftop Solar Power Plant for the Industrial Sector in Pakistan

As solar energy attracts more capital investment than oil, it’s time to take advantage of the growing potential for this new and emerging power source. Flexible solar buying options like Solar PPA rooftop, ground-mounted, and carport solar installations are becoming affordable for industrialists in Pakistan. This helps to fulfill their electricity needs with a renewable, green, and sustainable power solution.

Reduced Electricity Bills

Pakistan is a sunny country with vast solar potential. The annual mean value of global horizontal irradiance in the country is over 1,500 kWh/m2. This provides a great opportunity to produce power from the sun. However, there are several barriers to developing solar energy in Pakistan.

Increasing the share of renewables in the country’s electricity mix will reduce fossil fuel consumption and reduce greenhouse gas emissions. However, it is essential that policies and incentives to support renewables are in place.

The lack of reliable and affordable grid electricity in Pakistan is driving large corporations to seek alternative power sources such as solar PV and solar carport structures. By installing rooftop solar projects on a PPA basis, businesses can save on energy bills from Day 1 while reducing their carbon footprint. The resulting cost savings are significant for business owners. For example, Metro Cash & Carry Pakistan, reduced their electric bill by 5.8 GWh and 2,639,000 kg of CO2 annually with its solar PV systems.

Reduced Carbon Footprint

Currently, Pakistan’s power generation relies heavily on fossil fuels. This is a significant burden on the economy, as it contributes to GHG emissions and is expensive. Furthermore, it also puts the country’s balance of payments at risk. Solar energy could help alleviate these issues by reducing the country’s dependence on foreign oil, enhancing energy security, and improving environmental sustainability.

Fortunately, the country has vast potential for solar energy. The Cholistan desert, for example, receives 13 hours of sunlight a day and can be used to produce renewable energy. Moreover, Pakistan's solar energy industry can grow significantly with the right policy support and incentives.

Moreover, companies like Shams Power offer a Build Operate Own and Transfer (BOOT) model to provide clean energy for commercial and industrial customers in Pakistan. This model enables the customer to save on electricity bills and reduces upfront capital investment while providing an attractive financial return for the investor.

Reduced Maintenance Costs

Due to the abundant sunlight available in Pakistan, the country has a great potential for solar energy generation. However, renewable energy sources play a negligible role in the power generation mix of the country. The majority of Pakistan’s energy needs are met by thermal power plants that rely on fossil fuels to produce electricity. Fossil fuels are expensive, contribute to climate change, and have a negative impact on the economy.

In order to reduce its dependence on coal, Pakistan must introduce solar power auctions and build large solar energy parks. However, barriers to solar energy development include a lack of public awareness and financing opportunities. In addition, grid infrastructure must be developed to support solar power. These barriers can be addressed by facilitating financing options, encouraging private sector participation, and raising awareness about the long-term benefits of solar energy. Shams Power offers a cost-effective solar power solution for industrial and commercial sectors. With a solar PPA plant, businesses can save money from Day 1. The firm’s energy costs are reduced and its carbon footprint is diminished while attracting environmentally conscious customers.

Increased Productivity

Solar energy has the potential to transform Pakistan’s power production landscape and reduce its dependence on fossil fuels. With its abundant solar resources, the country can achieve lofty objectives like reducing the nation’s carbon footprint by 2025.

However, there are a number of challenges that must be addressed to unlock rooftop solar’s full potential. These include financial barriers, lack of awareness, and grid infrastructure problems.

In addition, the 25-year project term is problematic because it will result in a dollar-indexed tariff that could become unsustainable if solar prices decline quickly. This problem can be solved by using a shorter term, such as 14 years, or by introducing a BOOT model in which the developer bears the capital cost of the plant and pays for it over time, rather than requiring upfront payment by customers. Using these models will help reduce the barrier to entry for private investors and make solar energy more competitive. This will encourage rapid growth of the sector and drive further reductions in electricity rates for Pakistan’s industrial consumers.