On bill tariff model is a ‘hire-purchase’ model where the customers pay a tariff or service charge to the discoms for providing rooftop solar systems as a service.
Benefits to discoms
  1. Increased revenue for discoms through collection of service charges paid by consumers.
Benefits to consumers
  1. Installation of solar does not bind the consumer to the property as the ownership of the system is transferable upon the sale of the property. This increases the consumers’ willingness to participate in the project.
  2. Consumers’ overhead expenses are minimal as the rooftop services are provided by discoms.
Benefits to developers
  1. Low risk to the developers as they are paid upfront for the capital.
Source : Utility-centric Business Models for Rooftop Solar Models (USAID, 2008)
  • Target Consumer Segment
    Consumers with exclusive roof access and cannot bear the upfront cost of solar system installation
  • Location
    Consumer rooftops
  • Asset Ownership
    Discom – transferred to consumer upon capital repayment
  • Metering Arrangement
  • Role of Discom
    Service providing
  • Level of involvement by utility
  • Need for partnerships
  • Revenue to DISCOM
  • Skill Requirement
  • Risk to Utility