NMB signs PPA to Launch Unique Solar Roof-Top Model

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NMB signs PPA to Launch Unique Solar Roof-Top Model

January 21: NMB Bank has signed a private power purchase agreement (PPA) with SaralUrja Nepal Private Limited (SUN) for a 50 kW grid-tie solar roof-top with net metering. The bank said in a statement that the grid-tie solar roof-top will be placed its head office inBabarmahal, Kathmandu.

Under the power purchase agreement, SUN will install, own and operate the solar roof-top for 15 years. As per the agreement, NMB Bank 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. Not only will part of our own electricity requirements be met through solar energy, but we will also use this to expand financing of solar roof-top solutions across Nepal,” said Sunil KC, CEO of NMB Bank.

The bank said that the 50 kW solar energywill also help to avoid 2 million kWhimports and reduce imports by Rs20 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. Net metering has opened up tremendous opportunities for Nepal to diversify its generation base, reduce electricity costs to consumers, avoid imports and help build a more reliable electricity grid,” said BishalThapa, managing directorof SaralUrja Nepal.

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 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. We believe that through this system we can achieve 500 MW of solar roof-top within the next five years,” said Aashish Chalise, CEO of SUN.

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,” saidDinesh Dulal, head of Energy & Development Organization.

 

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