CAPEX Model
As the name states, the CAPEX model involves the customer paying for the installation of the solar plant, so the asset belongs to the customer. Even if the business has adequate space for setting up the solar power plant, or the company can make the upfront investment needed to own the solar power plant, a solar Capex model should be explored.
It is the most common model form of the solar power plant business model in India. In this model, the customer generally hires a solar EPC (Engineering, Procurement, and Construction) company that provides the installation of the entire solar power system and hand over access to the consumer. One of the major advantages of this model is that the customer is eligible to claim the accelerated depreciation to gain tax savings from the government.
