INNOVATION<\/h3>\n\n\n\n
This instrument is a lease model that targets persistent barriers to the deployment of residential rooftop solar, through several key features:
\u2022\u00a0 Deploys data-driven customer acquisition: Advanced analytics will uncover early adopters, raise the conversion ratios, and lower acquisition costs.
\u2022 Standardized product offering: To make solar easier to understand, homeowners will be presented with only 1 or 2 configurations of system sizing and financing options.
\u2022 Accessible financing options for customers: Lease financing would allow homeowners to experience solar without incurring high upfront costs.
\u2022 Access to debt financing by minimizing off-taker risk: To provide comfort to debt financiers, the proponent intends to reduce the payback period to 3-5 years (even if the lease tenure is longer). In addition, third-party credit assessment of off-takers
and stringent lease agreements will further reduce default rates.<\/p>\n\n\n\n
By 2022, the instrument has the potential to mobilize US$ 75 million and install rooftop solar projects for 20,000 households, abating 130,000 tons of carbon emissions.<\/em><\/p>\n\n\n\n \u2022 The instrument plans to install 250 projects of 5 KW each during the pilot in Kota, Rajasthan by 2019. This would mobilize US$ 1 million and save up to 1600 tons of carbon emissions. A vehicle to accelerate mass adoption of residential rooftop solar to power 200 million households in India, through standardized product offering, easy financing and efficient execution at scale<\/p>\n","protected":false},"author":185,"featured_media":30813,"template":"","format":"standard","meta":{"_acf_changed":false},"programs":[395],"regions":[155],"topics":[1200,842,264],"collaborations":[],"class_list":["post-31545","cpi_publications","type-cpi_publications","status-publish","format-standard","has-post-thumbnail","hentry","programs-global-innovation-lab-for-climate-finance","regions-india","topics-energy-and-infrastructure","topics-financial-innovation","topics-renewable-energy"],"acf":[],"yoast_head":"\nIMPACT<\/h3>\n\n\n\n
\u2022 At scale, the instrument has the potential to install 5 KW projects for 20,000 households. This would mobilize US$ 75 million and abate 130,000 tons of carbon emissions by 2022.
\u2022 If the business model were to be replicated by other companies, the instrument could account for 500 MW of installed capacity by 2022, enough to power 100,000 homes, abating 640,000 tons of CO2.<\/p>\n\n\n\nDESIGN<\/h3>\n\n\n\n
![\"\"](\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2018\/02\/260718-RSA_1-1-1024x541.jpg\")
<\/figure><\/div>\n\n\n\n
By scaling a standard solar leasing model, the proponent will generate revenues through monthly payments made by its customers. These revenues will be used to service loan repayments and meet operational expenses. The residual cashflows will be either reinvested or given back to shareholders. The Rooftop Solar Accelerator\u2019s interaction with different stakeholders is depicted in the instrument mechanics graphic. In addition to the leasing model \u2013 which is relatively new to India \u2013 this instrument differs from other attempts to unlock rooftop solar in several important ways:
\u2022 It introduces an analytic-driven framework for customer acquisition and credit evaluation. Data will be leveraged to segment customers based on income levels, appliance ownership, education, awareness levels, profession etc.
\u2022 It will ensure standardization to generate operational efficiencies within the leasing model, while making it easier for customers to decide. Homeowners will be presented with only 1 or 2 configurations of system sizing and financing options.
\u2022 The entire sales cycle will be managed through a mobile app, which will further ease the training process and optimize the sales cycles.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2018\/02\/RSA_table-09-1024x709.jpg\")
<\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"