As rooftop and ground-mounted solar systems grow rapidly across India, businesses and homeowners are faced with an important decision: Should you buy the solar system outright (CAPEX) or pay only for the electricity generated (OPEX)?

Both models make solar energy economical, reduce long-term solar electricity costs, and help users transition to clean, renewable solar power. Yet, the financial approach, ownership, and responsibilities differ widely.

This blog explains the CAPEX & OPEX Solar Models in simple, clear terms so you can choose the right option for your home, business, or industrial unit.

What is the CAPEX Model?

Under the CAPEX Model (Capital Expenditure), the consumer purchases the solar system by paying the entire solar installation charges upfront.

The user becomes the full owner of the solar plant, responsible for:

• Buying components
• Installing the system
• Handling operations & maintenance (O&M)
• Ensuring long-term performance

It is the most traditional and widely used model for home roof solar panels, small businesses, and even large industries that want full control.

Key Features of CAPEX

• Full ownership from Day 1
• You pay the solar panel system cost upfront
• Lowest per-unit electricity cost
• Eligible for the government solar subsidy scheme (for homes)
• Allows accelerated depreciation (for commercial & industrial customers)

CAPEX is best for organizations or households looking for maximum savings with long-term visibility.

What is the OPEX Model?

The OPEX Model (Operational Expenditure) is the opposite of CAPEX.

Here, a solar developer invests, installs, and owns the solar plant at your site.

You do not pay for the system; you only pay for the power you consume, similar to a mini-PPA arrangement.

Key Features of OPEX

• Zero upfront investment
• The developer owns the system
• You pay per unit of electricity
• The developer handles all O&M
• Ideal for industries or institutions wanting low-risk solar adoption

This model is especially popular among commercial and industrial (C&I) consumers with high energy bills but limited upfront capital.

CAPEX & OPEX Solar Models: Key Differences You Should Know

Both models make solar adoption easier by lowering the solar energy installation cost and reducing the total cost of solar installation over the life of the system.

Benefits of the CAPEX Model

• Long-Term Savings

You recover the solar roof installation cost in 3-5 years, and enjoy almost free power for the next 20 years.

• Full Access to Subsidies

Households get support under the government solar subsidy scheme, reducing the cost of solar panels.

• Control & Flexibility

You choose panel type, inverter quality, structure type, and maintenance schedule.

Benefits of the OPEX Model

• Zero Investment

No solar module price per watt, no installation cost, perfect for companies wanting instant savings.

• Fully Managed System

The developer handles cleaning, maintenance, repairs, monitoring, everything.

• Lower Electricity Bills

Tariff is usually 20-40% lower than the grid, lowering your solar installation cost per kWh.

How to Choose Between CAPEX & OPEX Solar Models

Choose CAPEX if you:

• want maximum long-term savings
• plan to stay in your location for 20+ years
• prefer owning the asset
• want subsidy or depreciation benefits

✔ Choose OPEX if you:

• don’t want an upfront investment
• want solar quickly without a financial burden
• prefer developer-managed systems
• want predictable energy costs

Who Uses Which Model?

Homes & small businesses

• CAPEX is more common because of low capacity and available subsidies.

Large industries

• Often prefer OPEX because capital is reserved for core operations.

Institutions & commercial buildings

• Use both, based on budget, savings expectations, and load patterns.

Why Choose Smart Roof Solar?

Smart Roof Solar helps customers with both CAPEX & OPEX Solar Models, offering:

• Transparent pricing of smart solar panel price, solar panel area per kW, and EPC charges
• End-to-end engineering, procurement & installation
• High-performance modules and inverters
• Real-time monitoring & strong O&M support
• Guidance on subsidy, net metering, and energy compliance

Whether you want ownership or low-cost solar power, we help you make the correct choice for your energy needs.

Conclusion

Choosing between CAPEX & OPEX Solar Models depends entirely on your goals, whether you want ownership and maximum savings or zero-investment solar with immediate bill reduction. Both models help you adopt clean energy, reduce electricity dependence, and make solar energy economical in the long run.

Switch to Smart Roof Solar for the right solar model, the right design, and the right savings, tailored to your home or industrial needs.

FAQs

Q1. Which model is cheaper in the long run?

Ans: CAPEX is cheaper over the system’s lifetime because you own the plant and enjoy the lowest per-unit cost.

Q2. Who handles maintenance in the CAPEX model?
Ans: The consumer is responsible for all operations and maintenance.

Q3. Who takes care of maintenance in the OPEX model?
Ans: The solar developer manages complete O&M, including cleaning, repairs, and monitoring.

Q4. Can homeowners avail subsidies under both models?
Ans: Subsidies are mainly available under the CAPEX model for residential users.

Q5. Does OPEX guarantee immediate savings?
Ans: Yes, OPEX tariffs are generally 20-40% lower than grid electricity, giving instant savings.