Oman Malls, Corporates Opt for Solar Lease Options to Go Green

An innovative solar PV leasing and operating solution is behind a flurry of solar installations adorning the rooftops and carports of a number of leading shopping malls and other corporate establishments in the Sultanate of Oman. Under the lease and operate model, the customer is spared the significant upfront cost of investing in solar PV panels, modules and other hardware necessary to be installed before being able to benefit from relatively competitive-priced solar-powered renewable electricity. Instead, a vendor with the financial wherewithal and operating knowhow will bear the capital cost of the installation, and also maintain and operate the system against a long-term contract. In turn, the customer pays a monthly fee, which may roughly compare with its previous energy bills based on subsidy-free, cost-reflective tariffs currently applied by electricity authorities for large commercial entities.

One such vendor that is making inroads into Oman’s small-scale captive PV sector based on the lease-and-operate model is Yellow Door Energy, a Dubai-based company with a presence spanning the Middle East and Africa. “An Agreement for Equipment Lease and Operations is a long-term contract with a performance guarantee on your solar plant. There is no capital expense. You pay a monthly solar bill once the solar plant starts generating electricity,” the company explained. In Oman, the company has agreements to install and operate captive solar PV systems for five malls of Majid Al Futtaim (MAF). They include Mall of Oman, with a 2.4 MWp capacity system, City Centre Muscat (3.7 MWp), City Centre Qurum (2.7 MWp), City Centre Sur (626 kWp) and City Centre Suhar (3.1 MWp). In half-yearly results announced recently, Yellow Door Energy revealed that it has successfully commissioned a total of 14 solar power plants across the UAE, Bahrain and Oman, adding 20 megawatts-peak (MWp) to its portfolio.

“Additionally, Yellow Door Energy acquired five operating projects in Oman with a total capacity of 3.5 MWp, further solidifying its leadership position in the region,” it noted. According to the company, over 240 MWp of projects are in various stages of operation, construction and planned in the Middle East. These initiatives, featuring over 46,000 solar panels, will be developed through solar leases or power purchase agreements (PPAs), it said. Also during the first half of this year, Yellow Door Energy raised $28 million in debt financing, which will be utilized to provide solar leases and renewable energy solutions to commercial and industrial businesses. “This latest funding builds on the company’s successful $400 million in equity raised in 2022, which supports the ongoing development of sustainable energy projects across the Middle East and Africa,” it added.