Zestec Asset Management is aiming to ignite the UK’s commercial solar rooftop market with a multi-million pound, subsidy-free model.
The scheme, which is financed by institutional and private investment, offers commercial rooftop installations for businesses backed by power purchase agreements.
Zestec develops and manages the installs while commercial entities enter into long-term PPAs that only rise owing to RPI.
Simon Booth, managing director at Zestec, said the model had been developed to pick up with the feed-in tariff had left off.
“For many years the installation of commercial solar PV has largely only been economically viable with the help of government subsidies
“We have created a funding model which provides clients with significantly reduced long-term electricity costs without need for the support of any government subsidy.
“This subsidy-free model ensures access to clean, green electricity for organisations operating in the private and public sector,” he said.
As well as developing new installations, Zestec is also keen to use its backing to acquire existing commercial rooftop installations through a buy back scheme, wherein Zestec would pay a lump sum upfront in exchange for all future feed-in tariff payments and enter into a PPA with the system’s previous owner.
Zestec has already seen some success with its model with national transport firm Stagecoach, which has installed seven rooftop PV systems with a combined capacity totalling 700kWp.
It also has a pipeline of future installs lined up, including one firm which is set to see a 400kWp system installed imminently.
Under the model once the 25-year PPA has concluded ownership of the system automatically transfers to the property owner and, crucially, the lease automatically transfers to any new owner should the property be sold during the lease period.
“We partner with solar PV installers and leading equipment manufacturers to provide clients with solar systems that deliver predictable and reliable electricity savings over a 25-year period.
“We are passionate about renewable energy and believe we can make a difference in the fight against climate change without support from government subsidies,” Booth said.