Sunroof Top Solutions - CAPEX & OPEX
CAPEX MODEL: In this model, the entire investment comes from the power consumer, consumer generally hire a solar EPC company who provide turnkey installation of entire solar power system and hand over assets to consumers. EPC also do annual operation and maintained (O&M) of plant on mutually agreed cost per annum.
OPEX MODEL: In the OPEX model, an investor or project developer (sometimes called Renewable Energy Service Company –RESCO) invests the CAPEX and consumer pays for the energy consumed/supplied by the solar power project delicately developed for a particular consumer. Both consumer and developer sign a long-term power purchase agreement (PPA) for an agreed tenure & tariff.
Sunrooftop facilitate installation of solar PV-systems on the roofs of IT/ Business Parks & Office Complexes, Mall /Shopping Complexes, Go downs/Cold Storages, and Health Centers/ Hospitals on EPC mode (CAPEX) or Investment mode (OPEX) depending on the willingness of owner of the premises. In CEPX Model all investment will be done by consumers while in OPEX Model investment will be made by third party and consumers will have to sign a Power purchase Agreement (PPA) with actual investor at mutually agreed tariff and tenure.
Manufacturing Units Production Units Go downs/Cold Storages
IT/Business Parks Office Complexes. Malls/Shopping Complexes
Schools Colleges Health Centers/ Hospitals
CAPEX Vs OPEX
Sun Rooftop empowers consumers with two distinct benefits – saving on electricity costs and contributing to the green environment. The two most popular types are OPEX and CAPEX when it comes to investing options in solar roof systems.
We explained in detail which of these models were involved and why one should make investment in the following plans.
SUN ROOFTOP owns the asset.
Customer owns the asset
Zero upfront investment by the customer. Can instead invest that capital into its core business.
100% investment born by customer
Quickly replicable and scalable because additional projects don’t need internal CAPEX approvals
MANAGEMENT APPROVAL TIMELINES
Typically requires long lead time for CAPEX approvals at senior management level.
WHAT YOU PAY FOR
Pay only for O&M charges after system purchase, no tariff for solar electricity generated
20-40% cheaper than Grid electricity Tariff
PER UNIT SAVING
Capital repaid through generated electricity
Turnkey solution, therefore CleanMax bears O&M cost
Customer pays separately for O&M
Savings from day 1 (Zero days)
As high as 4 years
SUN ROOFTOP handles all technical matters
TECHNICAL KNOW HOW
Dedicated team needed at customer’s end to evaluate system design, installation and operation
SUN ROOFTOP bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation
Customer bears all the performance risk and must manage equipment & downtime losses
No Tax benefits for customer
Customer can claim tax benefit through accelerated depreciation
SUN ROOFTOP prerogative
REGULATORY RISK AND APPROVALS