Project Financing

Investing in a solar on-grid power plant system in India involves considering different investment models, each with its unique characteristics and benefits. The primary models available are the CAPEX model and the OPEX or PPA model.

  1. CAPEX Model: This model involves a one-time, upfront capital expenditure by the consumer. In this approach, you cover the entire cost of the solar power plant, gaining ownership of the system and the energy it produces. This model is particularly suitable for systems with a capacity of 100kW or lower and is favored by those who prefer to own the system outright. The advantages include receiving clean electricity for over 25 years at no additional operational cost.
  2. OPEX or PPA Model: In the OPEX model, a solar energy company installs the solar plant at your site at no upfront cost, based on a Power Purchase Agreement (PPA) that typically spans 10-25 years. You then pay monthly operational expenses for the energy produced, usually at a rate lower than the grid tariff. This model is ideal for businesses looking to transition to solar energy without the burden of a large initial investment.

Regarding the cost and scale of a project, a 1MW solar power plant in India can generate around 4000 kWh units per day, with an average cost ranging from INR 4 to 5 Crore. The annual savings from such a plant can be approximately 1 Crore. These plants typically require an area of 4 to 5 acres. The cost breakdown includes various components such as solar PV modules, solar inverters, monitoring systems, protection devices, cables, and the solar structure.

The success of a 1MW solar power plant project can significantly benefit both the client and the investor. For instance, annual benefits and savings can be substantial, making it a profitable venture for businesses aiming to reduce costs, generate clean electricity, and contribute to sustainable energy solutions.

It’s important to carefully assess which investment model aligns best with your financial capabilities and long-term energy goals. The choice between CAPEX and OPEX models depends on factors like available capital, desire for ownership, and long-term financial planning for energy costs. For a detailed and specific investment plan tailored to your company’s needs, it would be advisable to consult with us.