Awesome Image
info@surolitenergy.com
020-29913824

CAPEX / OPEX

    The Operational Expenditure (OPEX) model for solar projects in India is a financing and ownership approach that contrasts with the more traditional Capital Expenditure (CAPEX) model. In the OPEX model, solar project developers or third-party investors finance, install, and maintain solar photovoltaic (PV) systems on behalf of the energy consumers, such as businesses or homeowners. The consumers then purchase the generated electricity at an agreed-upon rate over a specified contract period, typically ranging from 10 to 25 years.
    Overall, the OPEX model for solar projects in India facilitates wider adoption of solar energy by reducing financial barriers and operational complexities for consumers. It aligns with India's renewable energy goals and provides an avenue for businesses and homeowners to access clean energy while enjoying cost savings and environmental benefits.
    Some of the Features of OPEX Model are:

    • No Upfront Investment
    • Third-Party Ownership
    • Predictable Energy Costs
    • Minimal Risk
    • Environmental Benefits
    • Focus on Core Business
    • Regulatory Considerations
    • Long-Term Commitment

    The Capital Expenditure (CAPEX) model for solar projects in India is a traditional financing and ownership approach where the solar project developer or the energy consumer invests upfront capital to purchase, install, and own the solar photovoltaic (PV) system. In this model, the ownership of the system lies with the consumer, and they bear the responsibility for maintenance, operation, and performance of the solar installation.
    CAPEX model is well-suited for consumers who have the financial capacity to make an upfront investment and are interested in long-term ownership, control, and potential energy savings. It allows consumers to fully harness the benefits of solar energy while assuming the responsibilities and risks associated with ownership. However, the CAPEX model may not be feasible for all consumers due to the high initial costs and the need for expertise in solar system management.
    Some of the Features of CAPEX Model are:


    • Upfront Investment
    • Ownership and Control
    • Long-Term Benefits
    • Operational Responsibility
    • Technological Flexibility
    • Higher Financial Risks
    • Tax Incentives and Subsidies


PARAMETERS OPEX CAPEX
Ownership and Control:
Consumers have full ownership and control of the solar system. They make the upfront investment and are responsible for maintenance, upgrades, and operational decisions. The solar system is owned and operated by the project developer or investor. Consumers have limited control but are relieved of maintenance and operational responsibilities
Upfront Investment:
Consumers need to invest a significant upfront capital for purchasing and installing the solar system Consumers have minimal or no upfront investment; the project developer covers installation costs.
Financial Risks:
Consumers bear financial risks related to system performance, maintenance, and potential technological obsolescence. The project developer or investor assumes the financial risks associated with system performance and maintenance.
Operation and Maintenance:
Consumers are responsible for ongoing maintenance, monitoring, and operational decisions. Maintenance and operation are the responsibility of the project developer or investor, reducing the burden on consumers.
Energy Cost Predictability:
Consumers benefit from reduced energy bills over time, leading to cost savings. Consumers enjoy predictable energy costs through power purchase agreements (PPAs) with fixed or escalating rates.
Technological Upgrades:
Consumers can choose and implement upgrades or modifications to their solar system. Upgrades are typically at the discretion of the project developer.

In summary, the choice between the capex and opex models for solar projects depends on factors like financial capacity, desire for ownership and control, willingness to manage maintenance, and overall long-term objectives. The capex model provides ownership and potential for greater customization, while the opex model reduces financial barriers and maintenance responsibilities.