Introduction
In recent years, solar energy has emerged as one of the most practical and cost-effective solutions for meeting India’s growing power needs. While the benefits of switching to solar are widely recognized—such as lower electricity bills, reduced carbon footprint, and long-term energy security—businesses and homeowners often struggle with one key factor: the upfront cost of installation.
This is where the OPEX (Operating Expenditure) model comes into play. Unlike the traditional approach of owning a solar plant outright, the OPEX model allows businesses to adopt solar power without heavy capital investment. Instead, it operates on a “pay-as-you-consume” model, where you pay only for the energy consumed, much like your regular electricity bill.
In this blog, we’ll break down the OPEX model, its advantages, how it works in India, and why it is becoming increasingly popular for industries, commercial spaces, and even residential complexes.
What is the OPEX Model in Solar?
The OPEX model, also known as the RESCO (Renewable Energy Service Company) model, is essentially a solar-as-a-service approach. Under this arrangement:
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The developer/solar company owns, installs, and maintains the solar power plant.
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The consumer (business or homeowner) pays only for the electricity generated from the system.
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The payment is usually in the form of a Power Purchase Agreement (PPA) signed for 10–25 years at a fixed tariff (lower than grid electricity).
In simple terms, you don’t need to worry about the heavy upfront cost of buying solar panels, inverters, or setting up the infrastructure. You just enjoy the benefits of clean energy while paying monthly bills—often 20–40% lower than your existing electricity tariff.
Key Features of the OPEX Model
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Zero Upfront Investment – No need to spend lakhs or crores in buying a solar system.
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Fixed Tariff – Electricity prices under a PPA are locked for a long duration, protecting you from grid tariff hikes.
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Maintenance-Free – The developer takes care of operations, monitoring, and maintenance.
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Scalability – Businesses can expand capacity without worrying about infrastructure costs.
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Sustainability Goals – Companies can meet their ESG (Environmental, Social, Governance) commitments easily.
Advantages of the OPEX Model in India
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Cost Savings
Since solar tariffs under OPEX are significantly lower than DISCOM tariffs, businesses can save 20–50% on electricity bills depending on state policies and subsidies. -
No Capital Risk
All financial and operational risks lie with the developer, making it a safe option for businesses. -
Energy Independence
With long-term PPAs, you can forecast and control energy costs, reducing dependence on volatile electricity prices. -
Access to Latest Technology
Solar companies always prefer to install high-efficiency panels and advanced inverters to maximize output, ensuring better performance for the consumer. -
Environmental Benefits
By switching to solar, industries reduce their carbon footprint and align with India’s renewable energy goals.
Challenges in the OPEX Model
While the OPEX model is highly attractive, there are certain challenges to consider:
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Long-Term Commitment – Businesses are usually tied to 15–25 year contracts.
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Roof Ownership Issues – For leased buildings, permissions from landlords may be required.
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Creditworthiness Check – Developers prefer clients with good financial stability to ensure reliable payment.
OPEX Model in Action: Case Study Example
Imagine a textile factory in Surat consuming 1,00,000 units of electricity per month at ₹8 per unit from the grid.
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Monthly bill = ₹8,00,000
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If they switch to an OPEX model with a solar tariff of ₹5 per unit:
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New monthly bill = ₹5,00,000
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Monthly savings = ₹3,00,000 (37.5% savings)
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Annual savings = ₹36 lakh
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Over a 20-year PPA, the factory can save ₹7.2 crore, without investing a single rupee upfront.
OPEX vs CAPEX Model (Quick Comparison)
| Feature | OPEX Model | CAPEX Model |
|---|---|---|
| Ownership | Solar developer | Consumer/Business |
| Upfront Cost | Zero | High (₹30–₹40 lakh for 100 kW) |
| Tariff | Fixed per unit (₹4–₹6) | Free after ROI (typically 4–5 years) |
| Maintenance | Developer responsibility | Consumer responsibility |
| Risk | On developer | On consumer |
Why the OPEX Model is Growing in India
Several factors are driving the adoption of OPEX solar:
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High Industrial Tariffs – Many industries in states like Maharashtra, Gujarat, and Tamil Nadu pay more than ₹8 per unit.
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Government Push for Renewables – India’s target of 500 GW renewable energy capacity by 2030 is encouraging developers to expand OPEX projects.
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Increased Awareness – Businesses are now aware that switching to solar doesn’t always mean huge capital spending.
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Green Branding – Consumers prefer eco-friendly brands, and adopting solar under OPEX strengthens corporate image.
Future of OPEX Solar in India
The OPEX model is expected to dominate the commercial and industrial (C&I) solar segment in India. With falling solar tariffs, improving efficiency, and government incentives, businesses adopting this model will stay ahead in terms of cost savings and sustainability.
Residential adoption is slower, but gated societies and large housing complexes are exploring OPEX as a viable model for common area power requirements.
Conclusion
The OPEX model in solar is a game-changer for businesses and industries in India. It provides zero-investment access to renewable energy, ensures predictable power costs, and supports sustainability goals. For companies that want to reduce expenses while going green, the OPEX model offers the perfect balance of affordability and reliability.
At Solyug Energy, we specialize in guiding businesses through OPEX solar adoption—from feasibility studies to connecting with trusted developers. Whether you are an SME or a large industry, now is the right time to switch to solar and lock in your energy savings for the future.
Suggested Images for Blog
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Intro Image: Rooftop solar panels on a commercial building in India.
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Explainer Graphic: Illustration of OPEX model flow (Developer → Consumer → Grid).
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Comparison Table Visual: Side-by-side infographic of OPEX vs CAPEX.
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Case Study: Factory rooftop solar image with savings highlighted.
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Sustainability: Image showing reduced carbon emissions with solar.