CAPEX
(Capital Expenditure)
In this model, the solar system is acquired through an initial capital investment, with
the purchaser bearing the upfront cost but enjoying reduced electricity bills and
potential savings. Following the purchase, there are no ongoing payments, and
maintenance and operation become the owner's responsibility.
OPEX
(Operating Expenditure)
In the OPEX model, a third-party financier owns and operates the solar system, while the customer pays a fixed monthly fee or per kWh rate for the electricity generated. This arrangement relieves the customer from upfront investment and system maintenance, offering reduced electricity costs instead.
OPEX have two models:
BOOT (Built-Own-Operate-Transfer)
In the BOOT model, a third-party developer
finances, installs, owns, and operates the solar system on the customer's premises. The
customer enters into a long-term agreement to purchase the electricity generated by the
system at a predetermined rate. After a specified period (typically 10-25 years),
ownership of the solar system may transfer to the customer. The BOOT model is similar to
the RESCO model but may involve eventual ownership transfer to the customer..
RESCO (Renewable Energy Supply Company)
Under the RESCO model, a third-party developer installs, owns, and operates the solar system on the customer's premises. The customer enters into a long-term agreement (typically 10-25 years) to purchase the electricity generated by the system at a predetermined rate. The RESCO provider is responsible for financing, installation, maintenance, and operation of the system, while the customer benefits from reduced electricity costs without upfront investment.