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Solar Buisness Models

CAPEX Buisness Model

Capex mode is the most common business model for solar deployment in India. Capital expenditures are provided by the rooftop owner. In this model the consumer purchases the solar system, by making 100% of the payment upfront or financing the system, often through a bank. In Capex model the end consumer can own the asset and claim accelerated depreciation and save taxes. Setting up of a 100 kWp project can result in additional upfront savings of upto ₹20 Lacs. We at Galaxy Solar help you determine which investment model to opt for and then help you to set a plant and start saving on power costs. 100% upfront payment is made by the client for the Solar PV System.

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RESCO Buisness Model

Renewable Energy Services/Supply Company (RESCO) is a fusion model in which the rooftop owner and third party invests in the Solar PV plant. RESCO developer finances, installs, operates and maintains the rooftop solar power plant. The developer signs an agreement with the rooftop owner. The rooftop owners may consume the electricity generated, for which they have to pay a pre-decided tariff to RESCO developer on a monthly basis for the tenure of the agreement.