1. Power Purchase Agreement
The Power Purchase Agreement (PPA) is a contract whereby we sell the generated electricity at a price substantially lower than what you would otherwise have paid to Kenya Power.
As a solar PPA client of Miale Solar you only pay for the electricity generated by the solar PV system and not for the system and its installation itself. The client is required to buy the electricity that is generated from the solar installation implying that there is a need for a long-term commitment. The solar PPA will cut the electricity costs directly without any risk or capital investment. Thus the client will not be subjected to the fluctuating costs of fossil fuels or power from the electricity grid. Service level responsibilities for Miale Solar and operational responsibilities for the client, is included in the PPA.
2. Lease to Own Model
In the lease to own model, Miale Solar covers the upfront costs required for setting up the solar PV system and the client benefits from a positive cash flow already from year one.
This is also sometimes called ‘Hire Purchase Agreement’.
This is our most commonly used business model. The client is leasing the solar PV system, commonly for 5-6 years, while the upfront costs are covered by Miale Solar. The client benefits from the system as the monthly installments are made. The savings in electricity costs are higher than the payments, already during the lease period. This is possible thanks to our smart design work, an efficient supply chain and best practice installation routines together with our international contacts allowing us to offer investment funds at a competitive interest rate. Interest rate offered by Miale Solar is significantly better than what banks can offer. After the lease period the system is handed over to the client at no additional cost. By then the Client will save entirely from the Solar PV System, which is designed to last for many years to come. There is also an option of an early purchase of the system, whereby a settlement is made for the outstanding amount before the end of the lease period.
During the lease period any required technical service or replacement of components is included. After the lease periodMiale Solar can offer an extension of the service agreement for the remaining technical lifetime of the system, which for solar panels is 25+ years.
3. Direct Purchase
Our solar PV system offers are competitive in terms of quality and price thanks to smart design work, an efficient supply chain and best practice installation routines.
Miale Solar designs and optimizes a solar PV system that suits your specific facility. Distribution of partial payment is depending on the size of the project. With this option the client naturally has no cost for interest rate, compared to the Lease to Own model. If requested, Miale Solar will assist with a Service Agreement for the technical lifetime of the system.