Commercial,Institutional & Industrial
CAPEX:capital expenditures are provided by the rooftop owner.
CAPEX mode is the most common business model for solar deployment in India. In this model the consumer purchases the solar system, by making 100% of the payment upfront or financing the system, often through a bank.
The service provider is responsible for design, construction, operations, maintenance and commercial risks associated with the project.
RESCO:In Renewable Energy Service Company (RESCO) model capital expenditures are covered by third party.
A RESCO developer finances, design, procurement installs, commission, operates and maintains the rooftop solar power plant. The RESCO 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. Based on the consumption choice and requirement, the model is further divided into two types – Rooftop Leasing and Power Purchase Agreement (PPA).
- The RESCO constructs, owns, operates and transfers the ownership of the rooftop solar project after expiry of contract period (12 or 15 or 20Years) or as per agreed terms.
- Generally, transfer of ownership is made, once the RESCO has recovered its cost of capital and a suitable rate of return.
- After the transfer of ownership, the rooftop owner is responsible for O&M and he may choose to retain the services of the original RESCO or he may make his own arrangements for O&M requirements.
- RESCO will enter into lease agreement with the rooftop owner and set up the solar system on his roof.
- The rooftop owner will get an agreed amount of rent from the RESCO.
- The power generated can be either transmitted into Grid or may be provided to private procurer on agreed tariff