Capex Solar Project
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
Highlights
Allows Residential, Industrial, and Commercial to own the system.
The customer sets up the rooftop solar project with the intent to reduce his power costs.
The customer bears the entire capital expenditure of the project.
The customer gets benefit by selling the surplus power generated to the DISCOM.
The gains from tariff savings accrue to the roof and solar power plant owner.
Commercial & Institutional clients can also claim the accelerated depreciation.
EPC also performs the annual operation and maintained (O&M) of the plant on mutually agreed cost per annum.