Difference between CAPEX and OPEX.

There are two ways to get solar power system installed at your home, business, institute or industry.

CAPEX and OPEX Mode of Solar Power Installations

1. CAPEX Model (One Time Investment)

In CAPEX model (capital expenditure will be yours) you will have to pay the complete system's cost to system installation company in one shot and this would be your own system. And you will be get benefited for free electricity for next 25 plus years. If you are planning to install solar system for home or small business and your instillation size is less than 100 kW, then the best way to get it installed is CAPEX model.

2. OPEX Model (Pay per Unit with Power Purchase Agreement)

In OPEX model (operation expenditure will be yours) system instillation company will install the complete system at their own cost on your rooftop through a 10-25 year Power Purchase Agreement (PPA) between you and installation company. After that you just need to pay per unit on monthly basis. The PPA rates (Rs. 3 to Rs.7) are depend on your installation size, PPA time period and your company's credit rating. If you want to install solar system for your institute, business or industry and your installation size is above 100kW. You can go for OPEX model.