CAPEX vs OPEX: Which Solar Model Is Right for You?

When a business or housing society decides to switch to solar energy, one of the first financial questions that arises is — “Should we go for CAPEX or OPEX?”

Both models help you adopt solar power, but they differ in ownership, investment, and savings structure. Knowing how they work will help you choose the right plan that matches your energy goals and budget.

What is the CAPEX Model in Solar?

CAPEX (Capital Expenditure) means you own the solar system outright.

In this model, the consumer (company, factory, or society) invests the full upfront cost of the solar project — including design, installation, and commissioning.

Once the system is installed, it belongs entirely to you.

The solar plant generates electricity for 25 years or more, giving you free power after the payback period, which usually falls between 3–5 years depending on your electricity tariff and system size.

Key Features of Solar CAPEX:

Ownership: Customer (you)

Investment: 100% paid upfront by the customer

Maintenance: Usually handled by you (or through an AMC)

Savings: You save on your electricity bills directly

Tax Benefits: Eligible for accelerated depreciation and GST credit

ROI: Typically 18–25%, depending on system efficiency and tariff

Example:

If your factory spends ₹5 lakh a month on electricity and installs a 200 kW solar system, your investment could be recovered in about 4 years. After that, you generate nearly free power for the remaining life of the system.

Read More: Best Rooftop Solar Installation in Mumbai

Best For:

Businesses or industries with available capital

Owners wanting long-term savings and tax benefits

Those who prefer complete ownership and control

 

What is the OPEX Model in Solar?

OPEX (Operational Expenditure), also known as the RESCO (Renewable Energy Service Company) model, is a zero-investment approach.

Here, a third-party investor or solar developer (like ReNova Pulse Energy) installs, owns, and maintains the solar system at your premises. You don’t pay any upfront cost — instead, you pay for the electricity the system generates, typically through a Power Purchase Agreement (PPA).

In short, you buy solar energy, not the solar system.

Key Features of Solar OPEX:

Ownership: Solar developer / investor

Investment: ₹0 from the customer

Payment: Pay only for the energy generated (per kWh)

Maintenance: 100% handled by the solar provider

Savings: Immediate reduction in monthly electricity bills

Contract Period: Usually 10–25 years (depending on agreement)

ROI for Client: Savings of 10–40% compared to grid tariffs

Example:

Your commercial building signs a 15-year PPA at ₹5.50/kWh while your grid rate is ₹9/kWh. You save ₹3.50 per unit from day one — with no capital investment and zero maintenance worries.

Best For:

Businesses that prefer zero upfront cost

Firms focusing on cash flow management rather than asset ownership

Large power consumers like malls, industries, hospitals, and schools

CAPEX vs OPEX – Side-by-Side Comparison

Aspect                           CAPEX Model             OPEX Model    

Investment              Paid upfront by customer       ₹0 – Fully financed by solar developer

Ownership               Customer owns the system     Developer owns and operates

Maintenance          By customer (or AMC)              Fully handled by developer

Billing                       Self-generated power, no recurring bills        Pay per unit (PPA rate)

Tax Benefits      Available to customer             Claimed by developer

Ideal For           Those with capital & long-term plans           Those with capital & long-term plans

Payback Period         3–5 years                Instant savings, no payback required           

Which Model Should You Choose?

The choice between CAPEX and OPEX depends on your financial priorities, ownership goals, and energy strategy.

Choose CAPEX if you want long-term control, asset ownership, and higher returns.

Choose OPEX if you prefer zero-investment solar adoption, quick savings, and no maintenance headaches.

Both models help you achieve energy independence, reduce your carbon footprint, and protect against rising electricity costs.

ReNova Pulse Energy: Your Partner in Smart Solar Choices

At ReNova Pulse Energy, we specialize in both CAPEX and OPEX solar solutions for industrial, commercial, and residential clients.

Whether you want to invest upfront or prefer a zero-cost energy model, our team ensures:

Complete design, engineering & installation

Guaranteed performance & ROI

Net metering and subsidy guidance

Carbon credit monetization support

Go solar on your terms — invest or save, the power is yours.

We are a full-service Solar EPC company delivering turnkey solar solutions across residential, commercial & industrial sectors. From design and engineering to installation and maintenance, we handle the complete project lifecycle. We offer both CAPEX (ownership-based) and OPEX (pay-as-you-go/zero upfront cost) models, helping clients adopt solar energy with maximum financial flexibility.