With rising electricity costs and increasing focus on sustainability, solar energy has become a smart and future-ready choice for businesses across India. Rajasthan, blessed with abundant sunlight throughout the year, has emerged as one of the most promising states for solar adoption. Whether you are a commercial establishment, an industrial unit, or a large corporate facility, choosing the right solar financing model is crucial to maximising savings and returns.

As a leading solar company in India, eSunScope Solar helps businesses understand and adopt the most suitable solar model, CAPEX or OPEX, based on their energy needs, financial goals, and long-term strategy.

In this blog, we break down the CAPEX vs OPEX solar models, their advantages and disadvantages, and how eSunScope Solar supports businesses in Rajasthan, including Jaipur, in making the right decision.

Understanding Solar Financing Models

Broadly, solar projects in India are implemented under two major models:

• CAPEX (Capital Expenditure) Model
• OPEX (Operating Expenditure) Model

Each model has its own benefits and limitations, and the ideal choice depends on whether you want to invest upfront or adopt solar with minimal capital.

What Is the CAPEX Solar Model?

Under the CAPEX solar model, the consumer bears the complete cost of the solar power plant. This includes equipment procurement, installation, commissioning, and maintenance. Once installed, the solar plant is fully owned by the consumer.

In simple terms, you invest upfront, and the solar asset belongs entirely to you.

Key Features of CAPEX Model

• Full ownership of the solar power plant
• Control over operations, upgrades, and expansion
• Savings directly accrue to the consumer
• Typical return on investment (ROI) within 3–4 years

This model is widely preferred by businesses that have capital available and are looking for long-term energy cost reduction.

Advantages of the CAPEX Solar Model

1. Complete Ownership & Control
   The owner can modify, improve, or expand the system without depending on any third party.
2. Tax & Financial Benefits
   Businesses can avail of:
   • Accelerated depreciation benefits
   • Government subsidies (where applicable)
   • Tax rebates and incentives
     These benefits significantly improve project economics.
3. Protection Against Rising Tariffs
   Once installed, your cost of electricity remains largely fixed, protecting you from future grid tariff hikes.
4. High Long-Term Savings
   After the payback period, electricity generation is almost free, leading to substantial savings over 25+ years.

Disadvantages of the CAPEX Solar Model

• High Initial Investment
  The upfront cost can be substantial, especially for large installations.
• Operation & Maintenance Responsibility
  The consumer is responsible for plant performance, maintenance, and operational risks.

Despite these challenges, CAPEX remains a preferred choice for financially strong organisations seeking maximum returns.

What Is the OPEX Solar Model?

The OPEX solar model is ideal for businesses that want to switch to green energy without making any upfront investment. In this model, a third party, typically a Renewable Energy Service Company (RESCO) installs, owns, and operates the solar plant.

The consumer simply pays for the electricity generated, usually at a tariff 30–40% lower than grid power.

How the OPEX Model Works

• The RESCO sets up a Special Purpose Vehicle (SPV) for the project
• The SPV finances equipment, installation, commissioning, and maintenance
• The solar plant is installed on the consumer’s rooftop or land
• The consumer purchases solar power under a long-term Power Purchase Agreement (PPA)

This model allows businesses to go solar with zero capital expenditure.

Advantages of the OPEX Solar Model

1. Zero Upfront Cost: No capital investment is required from the consumer.
2. Lower Electricity Tariffs: Solar power is available at a significantly cheaper rate than grid electricity.
3. No Maintenance Hassles: All operations and maintenance responsibilities are handled by the RESCO/owner.
4. Minimal Risk: Performance, generation, and operational risks are borne by the developer owners.

This makes OPEX a desirable option for businesses focused on cash flow optimisation.

Disadvantages of the OPEX Solar Model

• No Asset Ownership
  The consumer does not own the solar plant.
• No Tax or Depreciation Benefits
  Since the developer owns the asset, tax incentives cannot be claimed.
• Limited Tariff Control
  Electricity tariffs are governed by the PPA terms and are not fully controlled by the consumer.

CAPEX vs OPEX: Which Model Should You Choose?

• Choose CAPEX if you want ownership, tax benefits, and long-term savings
• Choose OPEX if you want immediate savings without capital investment

Why Solar Makes Sense in Rajasthan

Rajasthan is one of the sunniest states in India, making it ideal for solar power generation. Cities like Jaipur, Jodhpur, and Udaipur offer excellent solar potential for commercial and industrial consumers.

With increasing demand for solar panel installation in Rajasthan, businesses are actively looking for reliable partners who can deliver technically sound and financially viable solutions.

How eSunScope Solar Can Help

eSunScope Solar is a trusted solar company in India, providing customised CAPEX and OPEX solar solutions for commercial and industrial clients.

What We Offer

• Custom CAPEX and OPEX solar models
• Rooftop and open-access solar solutions
• Expertise in utility-scale and distributed renewable projects

As a growing solar company in Jaipur, we understand the regional regulations, grid infrastructure, and solar potential of Rajasthan, enabling us to deliver high-performance and cost-effective projects.

Partner with eSunScope Solar

Whether you want to invest in a solar asset or reduce energy costs without capital expenditure, eSunScope Solar helps you identify the most suitable model for your business.

By switching to solar, you can:

• Reduce electricity bills
• Hedge against rising energy costs
• Meet sustainability and ESG goals
• Contribute to a greener future

Get in touch with eSunScope Solar today and take the first step toward clean, reliable, and affordable energy in Rajasthan.