Opex Model Solar

Capex and opex models.

Opex model solar.

In the opex model a 3rd party energy service company esco invests the capex and the operator pays monthly for the energy usage. What is opex model. Opex operating expenses model is also called power purchase agreement. This opex model is famous in many countries including us where half of rooftop solar pv installations are owned by opex developers.

In the opex model an investor or project developer sometimes called renewable energy service company resco invests the capex and consumer pays for the energy consumed supplied by the solar power project delicately developed for a particular consumer. Any expenditure investment done by company to purchase major goods or machinery is know as capex opex. Both the options can be availed under two models. 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.

Solar roof top with less upfront fee or no fee at all for solar roof top. Opex means operational. Capex means capital expenditure. Cheaper than grid electricity which ranges between 10 12 unit.

Consumer owns the system. In this model solar system installation company will install complete system at their own cost through an agreement for 10 25 years. 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. It is successful model internationally and remains so in india also as the consumer has not to incur upfront capital costs.

This model is getting highly popular in india and many opex. Today we have a network of private farms across india through which we supply large corporates with clean energy as per their needs. 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. Levelised cost of solar is as low as 4 5 unit.

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