Solar Financial Models
Know these financial models before investing in solar for your industry, and invest effectively
CAPEX Model
What is the CAPEX model?
The capital expenditure or CAPEX model is the financial plan where end customers like you invest to install a complete solar system, and you own a complete asset. Hence, if you wish to utilize empty space in your business premises effectively, solar with a CAPEX model is an option.
Advantages of the CAPEX model
Consumers completely own the system
Consumers have reduced levelized energy cost
Consumers can control technologies used
Best for consumers keen to avail of GST and depreciation
Customers can control the quality of types of equipment used
Individuals or companies with excessive cash have an edge
Institutional and commercial businesses can claim accelerated depreciation
Owner takes tariff-saving benefit
OPEX Model
What is the OPEX or RESCO model?
In the Operation Expenditure or Renewable Energy Service Company, a solar EPC company like Abhang Solar invests in installing and commissioning the system at your location and maintaining it. The client then pays for the electricity generated on a per-unit basis for decided tenure according to the power purchase agreement. This makes electricity less expensive compared to that from a generation company.
Advantages of the OPEX model
No hidden charges
Better tracking of consumption and load
Support from Government
No initial investment
Best for small businesses with expansion goals
The customer and investor will sign a power purchase agreement
The solar company owns the installed power plant
Cheaper than grid-based power
Book a call with a Solar Expert
As a potential solar investor, you will discover two options to finance the solar system, namely CAPEX and OPEX. Depending on your investment capacity and future plans, you can choose any of these financial models to install solar panels on your premises. Let us explore what these models are and how they can be helpful to you.