CAPEX vs OPEX in Solar Projects: Which Model is Right for Your Business?

25 August, 2025

Investing in solar is a smart way to cut energy costs and support a sustainable future. But when it comes to financing, there are two main models: CAPEX and OPEX. Understanding these can help businesses and homeowners make informed decisions.

CAPEX Model:

High upfront investment from the consumer (equipment, installation, maintenance).

Ownership remains with the consumer, allowing for tax benefits, depreciation, and potential revenue from selling excess power.

Tentative costs: ₹45,000–₹85,000 per kW. For a 5kW system, this is around ₹2.25–₹4.25 lakh, with a payback period of 5–6 years.

OPEX Model:

A third party (RESCO) owns and operates the system, while the consumer pays for electricity through a Power Purchase Agreement (PPA), usually 15–25 years.

Benefits include low or zero initial costs, minimal operational responsibility, and predictable pricing.

Consumers do not own the system and may have higher long-term costs.

Market Overview:

India’s rooftop solar capacity: ~19.88 GW (grid-connected rooftop), as of July 31, 2025, per MNRE’s official “Physical Progress” dashboard.

CAPEX vs OPEX/RESCO mix (recent additions): ~91% CAPEX / ~9% OPEX of Q1 2025 rooftop installations, according to Mercom India’s Q1 2025 market report summary. This confirms CAPEX remains the dominant model.

Trend: OPEX/RESCO projects are growing (driven by utility-led/residential push under PM Surya Ghar and city-level RESCO initiatives), but still a minority share versus CAPEX.

Conclusion:

Choosing between CAPEX and OPEX depends on your financial strategy, ownership goals, and willingness to manage operations. At Roofsol Energy, we help clients evaluate both options and implement rooftop solar solutions tailored to their needs.

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