Solar Solutions

Approx. Rs 40 / WattGet Latest Price

Deferred Capital Expenditures means capital expenditures that are budgeted to be spent prior to the Closing as set forth in Annex A but are not spent prior to the Closing.

Under this Solar Model Min. 30% is the initial margin from the customer towards Capital Expenses of system and Balance is paid back in equal 4-5 installments.

Balance of the Initial capital required is extended as a loan to the consumer by a financier/developer.

The key points are:

• The customer owns the Solar Asset.
• Customer can claim accelerated depreciation benefit

Additional Information:

• Item Code: EMI
• Production Capacity: 25Kw and Above

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The OPEX or the operating expenses model is a system where the developer owns the solar project, and the consumer only has to pay for the energy generated. This model is also called the Renewable Energy Service Company (RESCO) model.

Rooftops installed under the OPEX or RESCO model require the consumers to enter into a long-term, legally binding agreement for the roof on which the solar system is installed. They must also sign a long-term power purchase agreement (PPA) for the supply of power.

PPAs can be signed for up to 25 years, and the consumer is expected to pay a pre-determined tariff for this duration. Any excess electricity generated may be injected into the grid.

In this model, all capital expenses and risks are entirely borne by the developer. The developer will be the system’s owner for its entire lifetime and must provide operation and maintenance services throughout.

According to rooftop installers, consumers could have to pay a tariff ranging between  3.8 (~$0.051)/kWh and  5 (~$0.068)/kWh for the PPA duration. The tariff varies depending on the state and the policies prevalent at the time.

A major benefit of the OPEX model is going solar without any large upfront investments. However, not all installers may be willing to undertake smaller projects which smaller companies may be interested in. OPEX project installers tend to prefer medium to large-sized projects under this model.

Additional Information:

• Item Code: OPEX
• Production Capacity: 100Kw & Above
• Delivery Time: 1 Month