CAPEX MODEL

CAPEX MODEL

The CAPEX model is the most commonly employed model in India for the deployment of Roof Top Solution. In this model, consumers own the system, fund it, and consume the energy generated, so the consumer is responsible for the operation, management, and maintenance of the system. Often the consumer finances this through bank funding. The owner can apply for the capital subsidy provided through the CFA and additional subsidies provided by the respective state Governments. About 90% of RTS installed so far falls under this category.

This model has several advantages, including a fast payback period, risk-accommodative returns, and sole ownership structure. This model is common in the residential sector, where the consumers pay the entire cost up front; this type of model is common in other countries as well, such as Germany. This model is simple and straight forward.

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