CAPEX vs OPEX for Commercial Solar in India: Which Financial Model Wins?
A CFO's guide to solar financing. Compare CAPEX vs OPEX (RESCO) models to maximize your ROI in Maharashtra.
2026-03-07 · Mahajan Power Engineering Team
When industrial facilities in Maharashtra transition to solar, the first conversation is financial: how do you pay for a system that will power a factory?
In India the decision usually comes down to CAPEX (Capital Expenditure) and OPEX (RESCO). Choosing the wrong model can cost millions over 25 years.
The CAPEX Model
Your business buys the solar plant outright (EPC upfront, cash or loan). You own the asset from day one; after payback (typically 3–5 years in Maharashtra), the power is effectively free.
Advantages
- Highest long-term ROI—no third-party margin on power.
- Accelerated Depreciation (Section 32)—up to 40% in year one, reducing tax.
- Asset value on your balance sheet.
The catch: significant upfront capital or debt.
The OPEX (RESCO) Model
A third party owns and maintains the plant on your roof; you sign a PPA and buy power at a fixed, lower tariff. Zero upfront cost and hassle-free maintenance, but long-term returns are lower and you give up AD benefits.
The Verdict
At Mahajan Power we specialize in CAPEX systems. For most established businesses and manufacturing in India, CAPEX wins on wealth generation. We design robust solar for Maharashtra's climate so your investment yields maximum generation for decades.