CAPEX Payment Plans 

In India, this is the most popular model for a solar power plant business model. In this type of financing model, a customer purchases the solar system in two ways:

1. Upfront cash
2. Mix of bank loan and cash.

A consumer taking the CAPEX route engages a solar EPC (Engineering, Procurement, and Construction) firm to install the full solar power system. One of the most significant benefits of this model is that the customer is eligible for accelerated depreciation.

Banks will lend up to 70% to 80% of the cost of a solar power plant. SBI, IDBI, Punjab National Bank, Yes Bank, and other Indian banks provide solar financing.

Highlights of CAPEX – Capital Expenditure by User

• Allows Residential, Industrial, and Commercial to get ownership of his solar system asset.
• The customer installs the rooftop solar project in order to reduce his power costs.
• The customer bears the entire project’s capital costs incurred in installing a rooftop system upfront.
• The customer gets benefit by selling the residual or surplus power back to the grid.
• The gains from tariff savings accrue to the plant owner.
• Commercial & Institutional clients can take advantage of accelerated depreciation.
• EPC also performs the plant’s annual operation and maintained (O&M) at a mutually agreed-upon cost per year.
• The payback time is roughly around 3-5 years for the rooftop owner to see returns on his capital investments.
• The Return on Investment (RoI) is generally around 25-30%.

The only challenge that this model presents is the capital cost of going solar. If you are looking for a Capex-free investment, you can consider other solutions that we offer, such as the OPEX or Deferred Payment Agreement (DPA) Model helps you defer this challenge.

Benefits of CAPEX – Capital Expenditure by User

Customer opting for the CAPEX model receives all of the benefits from the installation of a solar power plant.

CAPEX-Model: Choose Your Payment Plan

We offer four different payment plans for our Capex models that are highly flexible and hassle-free.

CAPEX-Financial Model No. 2

• You pay 10% of the total amount in advance as the booking amount.
• Pay 70% of the total amount against the Performa invoice upon dispatch or the intimation of dispatch.
• Pay 10% when the material is delivered to the site by PDC.
• Pay the remaining 10% within 10 days of the commissioning of the plant by a PDC.

CAPEX-Financial Model No. 4

• You pay 10% of the total amount in advance as the booking amount.
• Pay 70% through a loan processed by us after you submit all the necessary supporting documents.
• Pay the remaining 20% within 45 days of the commissioning of the plant by a PDC.

Note: The financial model no. 4 is the most preferred and demanded plan by our customers.