Sunday, January 20, 2019

NMB signs PPA to launch unique solar roof-top model

NMB Bank Ltd (NMB) today signed a private power purchase agreement (PPA) with Saral Urja Nepal Private Ltd (SUN) for a 50-kW grid-tie solar roof-top with net metering. The grid-tie solar roof-top will be placed in NMB Bank’s head office in Babarmahal, Kathmandu.
Under the PPA, SUN will install, own and operate the solar roof-top for 15 years. NMB will purchase all the electricity generated from the solar roof-top at a price lower than their retail grid electricity tariff with no up-front investment.
"This initiative reaffirms NMB’s commitment to expanding and financing renewable energy in Nepal," chief executive of the NMB Bank Sunil KC said after signing the agreement. "Not only will part of our own electricity requirements be met through solar, we will also use this to expand financing of solar roof-top solutions across Nepal."
Over the 20 years life of NMB’s solar roof-top system, NMB will pay a lower price per unit from solar than from the grid. The 50-kW will also help to avoid 2 million kWh imports and reduce imports by Rs 20 million over the project’s life.
“We welcome the decision of Nepal Electricity Authority to allow net metering, a system that allows users to connect their solar system to the grid and export the excess electricity to the grid," managing director of Saral Urja Nepal Bishal Thapa said, adding that net metering has opened up tremendous opportunities for Nepal to diversity its generation base, reduce electricity costs to consumer, avoid imports and help build a more reliable electricity grid."
The agreement between NMB Bank and SUN is also intended to expand financing of such solar roof-top systems across Nepal. "The system at NMB Bank is a unique model, where customers can get a solar roof-top system with no upfront investment and pay a rate for solar electricity that is lower than NEA’s tariff," according to chief executive of SUN Aashish Chalise. "We believe that through this system we can achieve 500-MW of solar roof-top within the next 5 years."
NMB and SUN are working towards a financing facility that will enable SUN to offer the solar energy services across Nepal.
“Following this project, we expect to partner with SUN in launching a financing facility to expand the application of solar roof-top across Nepal that will allow customers to save money, diversify Nepal’s generation, reduces electricity imports and create many new jobs,” said chief of Energy & Development Organisation Dinesh Dulal.

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