How would you react if we tell you that you can start a solar plant over your commercial building rooftop with zero investment? It sounds like an impossible idea but the reality now is changed. 

With the advent of solar energy and the constant push by the government of India through incentives and schemes, businesses are shifting their focus to generating electricity through solar panels in a cost-effective way. For corporations that are going green, Solar Energy companies in India have come up with a ZERO INVESTMENT MODEL that will be economically feasible for enterprises in the long run.

For medium to small industries, electricity can be an expensive factor while running a successful business. Cutting on the electricity expenses can be a blessing for businesses that affordable solar plants can provide them.

Let us discuss one such model that is being used in solar markets in India. It is the OPEX or RESCO Model that the solar companies in India are bringing out for their customers. According to a report, OPEX accounted for almost 30% of all rooftop solar installations in India at the end of the year 2019.

What is the OPEX Model in Solar Power Plant Installation?

OPEX model is short for Operational Expenditure Model. It is a third-party financing model in solar plant installation. In the OPEX model, the solar installation companies will enter into a long-term power purchase agreement (PPA) of say 15 to 25 years with the customers—based on their credit ratings. 

Under this PPA, the solar installation company will build, operate and maintain the solar power plant for the customer, reducing their burden all at once. They sell the electricity generated from the rooftop solar power plant to the customer/rooftop owner at a rate lower than the grid tariff till the said period in agreement. When the agreement ends the solar plant is transferred to the customer free of cost. 

Data shows that the use of the OPEX model has increased from 4% in 2013 to 34% in 2019 which clearly depicts that the companies are choosing the OPEX model for its advantages.

Why is OPEX Model Called a ZERO Investment Model for Commercial Buildings?

• Expenses & Risk On The Developer

This is the number one advantage of the OPEX model. Businesses that do not want to invest their limited capital in the technology they are just beginning to use can start with OPEX/RESCO Model.

OPEX model gives your business the benefit of utilizing the electricity generated without bearing the setup, operation, or maintenance cost. The developer carries all the risk by investing in the solar rooftop installation till the PPA period ends. 

• Transferring Back To The RESCO

OPEX model gives the flexibility of usage that no other model has been able to present so far. After the end of the PPA, the rooftop solar power plant can be transferred back to the developer if you are no longer able to maintain and operate it. There is a trial of around five years to run and maintain it before you can give it back to the solar power company.

• Save Capital Eventually

OPEX model matches the choice of commercial industries because of the reduced module prices. It helps companies preserve capital at the end of the day. Business owners can generate electricity for their commercial power usage without building a solar plant on their own and investing upfront. Their resources on electricity can be invested in core operations. OPEX Model is an economical option for commercial buildings like hotels, schools, colleges et al.

• Cheaper Electricity

With this Build-Own-Operate-Transfer Model in place, your company can procure electricity at a 25 to 45% cheaper tariff than the grid tariff. 

The Renewable Energy Service Company (RESCO) is able to provide electricity at a pre-decided rate still making a profit for itself. You only pay for the electricity used by your commercial building. The rest of the electricity can be sold to the grid using the net metering system by the solar power companies.

From the home solar systems to commercial buildings like government institutions, schools, colleges, and MSMEs, companies in India are shifting towards rooftop solar power plants. OPEX Model is an attractive option for businesses that do not want to put in heavy investment on generating electricity on their own but want to go green without many risks.

ceNdor Industry is the leading Solar Installation Company in India that specializes in the OPEX model. For queries/quotes, you can reach out to us here.