Utico earmarks $100 million to finance SolarFree
Utico, the Middle East’s leading full service private utility today unveiled a solar investment programme, SolarFree, for homeowners and announced an investment outlay of over $100 million for the project.
In a statement, Utico said the innovative scheme will help revolutionise the home rooftop solar power generation market which has been picking up in Dubai following the launch of the landmark Shams Dubai solar programme of Dubai Electricity and Water Authority (DEWA).
“We believe that our solar investment proposition which will guarantee the world’s fastest cash pay back to investors, along with an option to recoup full investment in the project within a maximum of three years, will be a huge incentive to homeowners to switch to solar power, in turn promoting green economy,” said Richard Menezes, Managing Director of Utico.
He said Utico’s goal was to complete solar installations across 5,000 homes in the next 18 to 24 months. Homeowners can instal SolarFree roof top solar system without getting into any long term liability through power purchase agreements or long term lease as is currently practiced.
“SolarFree, will literally free up the home rooftop investor‘s equity in the project, rather than getting him into liability and long term debt. Moreover, the investor will also gain from RoI through regular and fast cash paybacks based on the solar power generated,” Menezes said.
He said that an investor can opt to get back investment in the solar installation from Utico within 18, 24 or 36 months. Investors will also have an option to buy the system through an in-house finance arrangement.
Menezes added that DEWA’s Shams Dubai works on a net metering scheme and hence Utico’s offering offers an incentive almost akin to feed-in tariff giving home owners a classic payback and return mix.
“Under SolarFree, we will offer the sale of the system at a fixed price guaranteeing home owners a return even if the solar system does not produce any power and an optional programme that offers the home owner get his investment back within a period of three years. The time frame can be shorter even for elite qualified consumers,” Menezes said, adding that there are no other hidden costs.
He further said the investment deal is purely based on green economy principles and the larger aim was to mitigate climate change by promoting use of solar power.
“We have always based our business model on innovation and sustainability from inception and thanks to the encouragement and blessings of the wise leadership of the UAE, we have been able to make tremendous progress in offering consumer friendly initiatives,” Menezes added.