Industrial Solutions

Opex Model & Its Benefits


Renewable energy in India has so far been dependent on subsidies given by the Government. But after Paris agreement, since India committed to setting up 175GW of renewable energy till 2022, we have seen the emergence of Opex Solar model of PV installation. Factors such as frequent power cuts, increasing prices of conventional power, high irradiation and the falling costs of solar are driving the demand in Roof Top Market. Benefits of Opex Model:

  1. Less Capital Intensive- RESCO Model is different from CAPEX model where the entire system is owned by the developer. Rooftop owners consume the electricity generated, for which they must pay a pre-decided tariff monthly. Thus, for consumers, it is a low-cost intensive option as compared to CAPEX model where the entire system is owned by the rooftop owners.
  2. Continuous Ops and maintenance support from developers- Responsibility of O&M for the system lifetime in RESCO Solar model lies with the developer. Since it is done by the experts in the field, the system runs efficiently for longer duration and results in incremental generation as compared to CAPEX model
  3. Government support- Central and State Government agencies provide subsidies to RESCO Solar developers on overall project cost. Currently 1GW Roof top capacity is installed in India. Government has targeted 40GW Rooftop Capacity till 2022. In order to meet the goal, in some special category states upto 70% subsidy is given to RESCO solar developers. Since the cost of solar panels fluctuates drastically due to uneven demand, customers are reluctant to opt for CAPEX model. With RESCO and attractive feed-in tariffs by the state regulators, consumers are less wary to get their piece of clean energy on their rooftops.
  4. Better Monitoring of load and consumption with energy data analytics- Developers under RESCO model provide monitoring system to the owners where they can see their load pattern and take necessary steps to reduce their day time consumption. Thus resulting into reduction in consumption backed by data analytics.

Capex Model & Its Benefits



Consumer purchases the solar energy plant and get it installed on their premises by the installer companies its called CAPEX model.

The biggest benefit of this module is, consumers will see immediate savings on its utility bills. Consumers provide the funds for the system upfront.
CAPEX is your choice if you have spare amount for investment which demands the quick payback of 4–5 years and after that free electricity for 25–30 years this is the best option for consumers. In terms of ROI (Return on investment) approx 20 to 25% easily you will get here.

Consumer Who Can Use Capex