We offer a range of customized financing models to ensure that you take the right step 
into the world of clean and green power solutions.
CAPEX model:
The consumer pays for the installation cost and owns the solar project. The energy produced is for its own use. The payback period is 3-5 years and the ROI is 20-30% annually.
Recommended for:
Residential
Industrial: SMEs, Small-medium scale Manufacturing and Production Units, Warehouses and Cold Storages
Commercial: IT/Business Parks, Office Complexes, Malls and Shopping Complexes
Institutional: Schools, Colleges, Universities, Health Centers and Hospitals
Benefits:
PAYE MODEL:
Under the Pay-as-you-earn (PAYE) model, the customer is required to pay once they start to earn money from the solar project. The customer will provide its financials/ documents as per the requirement. After successful processing, the payment will be made by our financing partners on behalf of the customer. The customer will be asked to pay monthly instalment (principal amount and interest) to our financing partner which will be based on the tenure of the loan and savings chart prepared by us..
Recommended for:
Residential
Industrial: SMEs, Small-medium scale Manufacturing and Production Units, Warehouses and Cold Storages
Commercial: IT/Business Parks, Office Complexes, Malls and Shopping Complexes
Institutional: Schools, Colleges, Universities, Health Centers and Hospitals
Benefits:
OPEX model:
The consumer sign a long-term PPA (Power Purchase Agreement) with a third party, who will pay for the installation cost and own the solar project. The consumer pays for the energy consumed/supplied by the solar project.
Recommended for:
Industrial: Large Manufacturing and Production Units
Commercial: IT/Business Parks, Office Complexes, Malls and Shopping Complexes
Benefits:
Difference between CAPEX and OPEX
| CAPEX | OPEX | |
|---|---|---|
| Investment | Upfront investment for an asset having a life of more than 25 years. The payback period is 3-5 years after which the cost of energy generated is almost zero | Zero upfront investment. The consumer can procure power at rates cheaper than existing grid rates for the term of PPA (15,20 or 25 years) from day 1 of the system operation |
| Tax Benefits and Subsidy | Accelerated Depreciation benefit of upto 40% of the system cost in year 1. The subsidy is released to the project owner | Accelerated Depreciation benefit and subsidy will be taken by the investor who owns the system |
| Limitations on Host customer activities | No restrictions on shutting down solar or moving to a different location or even removing it. Land/Rooftop will not be leased out. No binding long term PPA agreement | Certain responsibilities of the host including to make sure like no shutting down of solar plant and no shade creating objects or activities are developed in future. Land/Rooftop has to be leased to investor. Buyout and Termination options are very costly |
| Operation and Maintenanc | Replacement of components, O&M, warranty claims are all part of the owners responsibility | O&M as well as insurance are included in the PPA rate and warranty claims are to be undertaken by the investor |
| Value Addition | Addition of components like Energy storage, Power quality enhancer, capacitor banks etc. can be done by the owner | Any additional enhancement to the facility in terms of energy management has to be done without affecting the solar plant for the term of PPA |
Scenario Analysis
| Scenario | CAPEX | OPEX |
|---|---|---|
| Ability to avail accelerated depreciation and subsidy benefits | YES | |
| No foreign presence or leasing of Land/rooftop for a long term (>15 years) | YES | |
| Confident in operating and maintaining solar plant for the lifetime | YES | |
| Implementing other energy conservation | YES | |
| Reduce operating cost without any investment | YES | |
| Belief in Utility tariffs escalating at a high rate (>= 4%) | YES | |
| Inability to allocate manpower and resources dedicated to solar project | YES | |
| Consistent and predictable load profile | YES |