Your board approved ₹15 crore power budget for this year.
Next year grid tariffs increase 8%. Budget is now ₹16.2 crore.
Lock ₹5.5/kWh for 25 years. Your power budget never changes.
The energy cost uncertainty problem
CFOs can't budget when costs escalate unpredictably:
Grid Tariff Reality:
- 8-10% annual increases
- Fuel surcharge volatility
- Regulatory charge additions
- Cross-subsidy adjustments
- Zero visibility beyond 12 months
Budget Impact:
- Year 1: ₹15 crore
- Year 5: ₹22 crore (47% increase)
- Year 10: ₹32 crore (113% increase)
- Year 25: ₹102 crore (580% increase)
Planning Nightmare:
- Board presentations outdated in 6 months
- Capex decisions delayed by cost uncertainty
- Margins compressed by uncontrollable costs
- Competitive pricing impossible
Fixed rate solar PPA solution
25-Year Fixed Tariff Agreement
Not variable pricing. One rate. Forever.
Solar PPA Structure:
- Fixed tariff: ₹5.5/kWh
- Contract term: 25 years
- Zero escalation
- Zero capex from you
- We build, own, operate
Financial Certainty:
- Year 1 power cost: Known
- Year 5 power cost: Same
- Year 10 power cost: Same
- Year 25 power cost: Same
Budget locked. Forever.
25-year cost comparison
50 MW Manufacturing Facility
Grid Power (Variable):
- Year 1: ₹15 crore @ ₹8.6/kWh
- Year 5: ₹22 crore (8% escalation)
- Year 10: ₹32 crore
- Year 25: ₹102 crore
- 25-year total: ₹1,575 crore
- Uncertainty: Extreme
Solar PPA (Fixed):
- Year 1: ₹9.6 crore @ ₹5.5/kWh
- Year 5: ₹9.6 crore (zero escalation)
- Year 10: ₹9.6 crore
- Year 25: ₹9.6 crore
- 25-year total: ₹240 crore
- Uncertainty: Zero
Savings: ₹1,335 crore over 25 years
CFO benefits beyond cost savings
Budget Certainty:
- Power budget set for 25 years
- Board presentations remain valid
- Multi-year planning possible
- No surprise cost shocks
Improved Margins:
- Fixed energy cost = predictable COGS
- Competitive pricing confidence
- Margin protection from grid escalation
- Bottom line stability
Balance Sheet Impact:
- Zero capex required
- Off-balance sheet financing
- Preserves debt capacity
- Working capital unchanged
Strategic Flexibility:
- Capex available for core business
- Growth investments prioritized
- Risk profile reduced
- Financial ratios protected
How fixed pricing works
PPA Contract Terms:
Price Lock:
- ₹5.5/kWh fixed at signing
- No annual escalation clauses
- No fuel adjustment charges
- No regulatory pass-throughs
Volume Commitment:
- Minimum offtake specified
- Pay-as-you-use above minimum
- No capacity charges
- Predictable monthly bills
Performance Guarantee:
- 99.5% uptime SLA
- Generation guarantees
- Financial penalties if we miss
- Your operations protected
Contract Security:
- 25-year term commitment
- Fixed payment schedule
- No renegotiation risk
- Bankable structure
Grid escalation vs fixed rate
Historical Grid Tariff Growth (2019-2024):
- 2019: ₹7.2/kWh
- 2020: ₹7.8/kWh (+8.3%)
- 2021: ₹8.5/kWh (+9.0%)
- 2022: ₹9.2/kWh (+8.2%)
- 2023: ₹9.9/kWh (+7.6%)
- 2024: ₹10.6/kWh (+7.1%)
- 5-year CAGR: 8.0%
Future Projections:
- Coal prices rising
- Renewable obligation costs
- Grid infrastructure investment
- Cross-subsidy pressure
- Expectation: 8-10% annual growth continues
Solar PPA Alternative:
- 2025: ₹5.5/kWh (locked)
- 2030: ₹5.5/kWh (same)
- 2040: ₹5.5/kWh (same)
- 2050: ₹5.5/kWh (same)
- 25-year CAGR: 0%
Financial planning advantages
Multi-Year Forecasting:
- 5-year business plan: Energy cost locked
- 10-year expansion model: Power budget certain
- 25-year asset life: Energy expense predictable
- Board confidence: Zero cost surprises
Competitive Positioning:
- Your competitors face 8% annual increases
- Your costs stay flat
- Margin advantage compounds
- Market share protection
Valuation Impact:
- Lower cost structure = higher EBITDA
- Predictable margins = lower risk premium
- Long-term contracts = enterprise value boost
- Exit multiples improve
Investor Confidence:
- Institutional investors value certainty
- ESG compliance demonstrated
- Cost management proven
- Financial discipline clear
Real CFO example
40 MW Chemical Plant — CFO Perspective
Problem (2023):
- Grid power: ₹12 crore/year
- 5-year forecast: ₹18 crore by 2028
- Board questioning volatility
- Competitors with lower energy costs winning bids
Decision (2024):
- Signed 25-year solar PPA @ ₹5.5/kWh
- Zero capex required
- Power budget: ₹7.7 crore/year fixed
- Savings: ₹4.3 crore year 1
Result (2024-2049):
- Annual savings: ₹4-10 crore (grows as grid escalates)
- Board presentations: Power line item unchanged
- Competitive advantage: Lower COGS than peers
- 25-year savings: ₹456 crore
CFO quote: "Best financial decision in my tenure. We locked our second-largest cost line for 25 years. Board loves it. Shareholders love it. I sleep well."
PPA vs other options
Solar PPA (Fixed Rate):
- Capex: ₹0
- Annual cost: ₹9.6 crore (fixed 25 years)
- Balance sheet: Off-balance sheet
- Budget certainty: Perfect
- CFO recommendation: Best for cost certainty
Captive Solar (Ownership):
- Capex: ₹100 crore
- Annual cost: ₹1.5 crore (O&M)
- Balance sheet: Asset + debt
- Budget certainty: Good
- CFO recommendation: Best for lowest total cost
Grid Power (Status Quo):
- Capex: ₹0
- Annual cost: ₹15 crore (escalating 8%)
- Balance sheet: Neutral
- Budget certainty: None
- CFO recommendation: Highest risk option
Contract structure details
Standard PPA Terms:
Financial:
- Fixed tariff: ₹5.5/kWh
- Monthly billing cycle
- Payment terms: Net 30
- No hidden fees
- No escalation clauses
Operational:
- We build, own, operate
- You buy power only
- 6-month delivery
- 99.5% uptime guaranteed
- Grid backup included
Legal:
- 25-year term
- Force majeure protections
- Dispute resolution mechanism
- Contract transfer rights
- Early termination terms
Accounting:
- Treated as operating expense
- Off-balance sheet
- No depreciation accounting
- Simple P&L impact
- Auditor-friendly structure
The budget certainty advantage
Board Presentation Confidence:
Every CFO presents power budget annually. With grid:
- "Energy costs projected ₹16.2 crore, assuming 8% escalation, subject to regulatory changes, fuel surcharges, and market conditions."
With solar PPA:
- "Energy costs: ₹9.6 crore. Fixed through 2049. Locked by contract."
Which presentation gets approved faster?
For CFOs managing ₹10+ crore annual power budgets.
For finance teams tired of explaining tariff increases.
For boards demanding cost certainty in volatile markets.
We deliver 25-year fixed-rate solar PPAs. Zero capex. ₹5.5/kWh locked. Your power budget never changes.
Request a fixed-rate proposal—we'll show your exact 25-year power cost with zero escalation and compare it to grid trajectory with 8% annual increases.
Disclaimer: Power cost escalation rates are based on historical data and industry projections. Actual future costs may vary. Pricing is subject to site assessment, project size, and contract terms. All cost comparisons and savings calculations are illustrative estimates. Actual results will vary based on facility consumption patterns and market evolution. This content is for informational purposes only and does not constitute financial advice or binding offer. Contact us for site-specific proposal with actual terms.