For commercial and industrial (C&I) consumers in India, the decision between CAPEX and OPEX solar models is one of the most important financial choices they'll make.
CAPEX Model
Under the CAPEX model, the consumer owns the solar plant outright. They pay the full upfront cost and reap all the benefits — including accelerated depreciation (40% in the first year), zero electricity cost for 25+ years, and complete control over the asset.
Best for: Companies with strong balance sheets, tax appetite, and long-term outlook.
OPEX Model
Under the OPEX model, a developer installs and owns the solar plant on the consumer's premises. The consumer signs a Power Purchase Agreement (PPA) and pays only for the electricity consumed — typically at 30–50% below grid tariffs.
Best for: Companies wanting zero upfront investment, preserving capital for core business.
Both models have their merits, and Mecpower offers comprehensive solutions under both frameworks.