The Residential PV Initiative in Oman proposed by the Authority is as follows:
i. The phased installation of 2kWp – 4kWp PV systems at the premises of around 10% to 30% of residential customers;
ii. Funding for an initial phase of the initiative would comprise an advance of future gas saving benefits and subsidy reductions and customer contributions based on a multiple of either annual bills, or the present value of five-years of anticipated bill savings.
iii. Accelerated Subsidy Adjustment: is an arrangement where, in anticipation of future subsidy reductions, an agreed amount of future subsidy is provided to the Authority to fund an initial stage of the initiative. Customers participating in the initiative would be asked to contribute to the cost of installing a PV system at their premises, contributions would be a multiple of (i) customer bills, or (ii) the present value of anticipated bill savings over three or five years. Thereafter, customers would receive the full benefit of ongoing bill reductions.
iv. Once an initial tranche of Residential PV systems is installed and demonstrating satisfactory performance, the PV systems would be offered as an investment opportunity to investment funds who would recover their investment and an agreed competitive rate of return from payments aligned to PV system output reflecting the monetised economic benefits described above. The Authority will utilise funds from the sale of the initial tranche of PV systems to finance a further tranche of Residential PV, and so on until the initiative target is met.
The Authority would utilise funds from the sale of the initial tranche of PV systems to finance a further tranche of Residential PV, and so on until the initiative target is achieved. Work is ongoing to clarify and finalise the details of the transactions framework.