1. CAPEX (CAPITAL EXPENDITURE MODEL)
It is the most common 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 hands over access to the consumer.
2. OPEX (OPERATING EXPENDITURE MODEL)
Here the RESCO developer invests in solar rooftop assets, and sells the generated power to the building owner in favour of a lower solar power tariff. The excess power could be sold by the building owner to the utility through a net metering system. The highly skilled and dedicated EPC Team at Hi-Tech Solar assures the completion of each solar plant from concept to commissioning including its operation and maintenance for the complete lifespan of the plant.
| CAPEX |
MODEL |
OPEX |
|---|---|---|
| Customer owns the asset |
 OWNERSHIP |
Hitech Controls owns the asset |
|
100% investment borne by customer
|
 INVESTMENT |
Zero upfront investment by the customer. Can instead invest that capital into its core business. |
|
Typically requires long lead time for CAPEX approvals at senior management level. |
 MANAGEMENT APPROVAL TIMELINES |
Quickly replicable and scalable because additional projects don’t need internal Hitech approvals |
| Pay only for O&M charges after system purchase, no tariff for solar electricity generated |
 WHAT YOU PAY FOR |
Pay only for electricity generated, no hidden costs |
| Capital repaid through generated electricity |
 PER UNIT SAVING |
20-40% cheaper than Grid electricity Tariff |
| Customer pays separately for O & M |
 O & M |
Turnkey solution, therefore Hitech bears O & M cost |
| As high as 4 years |
 PAYBACK |
Savings from day 1 (Zero days) |
| Dedicated team needed at customer's end to evaluate system design, installation and operation |
 TECHNICAL KNOW HOW |
Hitech handles all technical matters |
| Customer bears all the performance risk and must manage equipment & downtime losses |
 PERFORMANCE RISK |
Hitech bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation |
| Customer can claim tax benefit through accelerated depreciation |
 TAX BENEFITS |
No Tax benefits for customer |
| Owners prerogative |
 REGULATORY RISK AND APPROVALS |
HiTech prerogative |
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