MBA Renewables

David Rau

Master's thesis

Investigation of innovative solar financing and operation schemes as catalyzer for chilean residential and small scale commercial photovoltaic plants up to one megawatt peak

Professional Background

Regional Manager Alusín Solar Chile SpA and CEO Flux Solar SpA

Experience with the MBA Renwables

"The MBA Renewables counts with a flexible team and management in order to enable a complex Master study in parallel to your working ambitions".

Advice for future students

"The MBA Renewables has been a great opportunity to strengthen technical expertise with economical and financial background. I highly recommend it".

Abstract of the thesis:
An important difference is that solar as a service not only offers a financial solution to the client but represents a complete change in the way solar energy is being offered and used. It alters the solar company from being a retailer of technological solutions to a service provider selling electricity and the right to use solar power to its clients. For commercial clients it also represents a form of off-balance financing. What is more it takes all responsibilities and risks from the client facilitating the complete process. Revenues for the solar company are generated by long term monthly payments within a leasing contract of a Power Purchase Agreement instead of onetime down payments.
Microfinancing and Crowdfunding also found to be quite successful in its international implementations but the evaluation within this study indicates that both methods do not represent universal solutions but a specialized financing solution for certain circumstances. So for example microfinancing has been successfully implemented in Bangladesh in order to massify the use of solar systems in the poor and rural population.
Accordingly, it has been demonstrated that business model innovation with third party financing mechanisms are being implemented internationally and count with relevant success in its field. The named forms of business model innovation, so-lar as a service, microfinancing and crowdfunding offer new significant growth potential in the solar sector and especially solar as a service demonstrated the ability to disrupt stagnated electricity markets.