Opex Model Solar

Any expenditure investment done by company to purchase major goods or machinery is know as capex opex.

Opex model solar. This model is getting highly popular in india and many opex. Capex means capital expenditure. Today we have a network of private farms across india through which we supply large corporates with clean energy as per their needs. Consumer owns the system.

Opex means operational. 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. 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. 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.

This opex model is famous in many countries including us where half of rooftop solar pv installations are owned by opex developers. Both the options can be availed under two models. What is opex model. The responsibility of ensuring 24x7 power availability including site operation maintenance refueling lies on esco s shoulder.

Levelised cost of solar is as low as 4 5 unit. 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. Cheaper than grid electricity which ranges between 10 12 unit. Capex and opex models.

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. The capital expenditure capex model or the operating expenditure opex model. Solar roof top with less upfront fee or no fee at all for solar roof top.

Opex operating expenses model is also called power purchase agreement.