Definition
OPEX (Operating Expenditure) model in solar is a Power Purchase Agreement (PPA) where a developer owns and operates the solar plant on the customer's roof or land, while the customer pays a per-kWh tariff for the energy consumed. Also called RESCO (Renewable Energy Service Company) model in India.
OPEX vs. CAPEX
| Aspect | OPEX (RESCO) | CAPEX |
|---|---|---|
| Upfront cost | ₹0 | Full system cost |
| Ownership | Developer | Customer |
| O&M | Developer | Customer |
| Tax benefits | Developer | Customer |
| Energy cost | Per-kWh tariff | Variable (after recoup) |
| Best for | C&I with no capital | Owners wanting asset |
Key Takeaways
- OPEX = zero-CapEx solar via per-kWh tariff PPA.
- Developer owns + operates; customer consumes.
- Tariffs typically ₹3.50–6.50/kWh in India.
- 15–25 year contract term.
- Major segment of Indian C&I solar market.
Frequently Asked Questions
4 commonly searched questions about OPEX Model (Solar).
What is OPEX in solar?
Operating expenditure model — customer doesn't buy the solar plant; they sign a PPA with the developer who finances, owns, operates, and maintains the plant. Customer pays per-kWh tariff for energy consumed.
How is OPEX different from CAPEX?
CAPEX: customer buys the plant, owns assets, claims tax benefits. OPEX: developer owns plant, customer pays per kWh. OPEX = zero upfront for customer; CAPEX = upfront investment for ownership benefits.
Typical OPEX PPA tariffs in India?
₹3.50–6.50/kWh (2024) depending on capacity, location, contract term. Lower than typical industrial retail tariff (₹8–14/kWh).
What's the contract term?
Typically 15–25 years. Customer commits to buying all energy generated; developer guarantees minimum generation.
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