In the ‘Group-Captive’ model, a solar project is generally opted by and developed for the collective usage of C&I consumers. It is nowadays becoming a compelling model. According to the INDIAN ELECTRICITY RULES OF 2005, the consumer and the developer shall have to hold a certain percentage of equity (capital) in the project and the consumer shall also consume atleast 51% of the electricity under the PPA signed.
An SPV is created with the Developer and the End Client as consortium partners. The Developer shall invest 74% of the Project Cost and the remaining 26% shall be invested by the End Client. In such cases, Vyom Energy Ltd, also a part of the SPV, shall facilitate 80% of the Project Cost as debt with competitive interest rate and the SPV shall have to invest only 20% of the Project Cost. The End Client will still hold 26% equity rights of the Asset. The significant reduction in the investment that the End Client putsforth, including the saving from the reduced interest rates, makes this an attractive model for consumers
