Opex Model Solar

When you are considering buying solar power you would generally find two options in the market investing into a rooftop solar plant or buying solar power under a power purchase agreement ppa.

Opex model solar.

What is opex model. In this model solar system installation company will install complete system at their own cost through an agreement for 10 25 years. Both the options can be availed under two models. It is successful model internationally and remains so in india also as the consumer has not to incur upfront capital costs.

This opex model is famous in many countries including us where half of rooftop solar pv installations are owned by opex developers. Capex and opex models. Cheaper than grid electricity which ranges between 10 12 unit. Opex model build own operate cleanmax pioneered and introduced the opex model which is also known as energy sale model in indian solar industry in 2012.

A capex model which means acquiring the solar panels and benefit from the produced electricity or an opex model which means the paying for the panels over time. Opex operating expenses model is also called power purchase agreement. In the opex model a 3rd party energy service company esco invests the capex and the operator pays monthly for the energy usage. And you will have to pay per unit cost on monthly basis.

Levelised cost of solar is as low as 4 5 unit. Solar roof top with less upfront fee or no fee at all for solar roof top. For the actual end user or off taker of the electricity be it a utility a consumer or a company there are two archetypes of solar investments. Any expenditure investment done by company to purchase major goods or machinery is know as capex opex.

The responsibility of ensuring 24x7 power availability including site operation maintenance refueling lies on esco s shoulder. This model is getting highly popular in india and many opex. Opex means operational. Today we have a network of private farms across india through which we supply large corporates with clean energy as per their needs.

The capital expenditure capex model or the operating expenditure opex model.