Choose The Right Financial Model For Your Solar Energy

We’re often told that electricity generation is a huge contributing factor when it comes to Global Warming. While this is true when it comes to non-renewable energy we, at Vijay Engineering and Machinery Co., strive towards promoting the use of renewable energy, which doesn’t add to Global Warming.

Solar power is a solution that is not only environmentally friendly but also makes the best use of the warm climates we endure. Being empanelled channel partners with the Ministry of New and Renewable Energy, Govt. of India, we offer a wide range of solar solutions (e.g. solar lighting systems) which cater to different energy requirements.

For those considering switching to solar energy, you should consider which financial model you want to opt for. VEMC offers both Opex and Capex models.

What do Opex and Capex mean?

Opex stands for Operational Expenditure (the money a business spends in day-to-day operations). Capex stands for Capital Expenditure (the money a business spends on capital, i.e. long-term assets).

Opex Model

In this model, VEMC undertakes the installation and maintenance of the solar PV system, solar generator, etc. It is paid for and owned by the investor. The client (that’s you) then signs a Power Purchase Agreement with us, which gives you the right to buy and consume 100% of the electricity generated by the system. This agreement is usually for a long period of time, e.g. 25 years.

Benefits of this model:

  • You don’t need to bear the cost of installing the system

  • You’ll get discounts on the prices of the electricity generated

  • VEMC will take care of the installation, maintenance, operation and permissions for the system

  • You’ll be consuming green energy AND getting it for lower prices

This model is ideal for those who don’t want to invest a large amount upfront for the project. It allows you to consume solar energy and also reduce the amount of money you spend on electricity.

Capex Model

If you opt for this model, VEMC will install the solar PV system and solar generator on your premises. Once it is set up, VEMC will give you full ownership of the system and conclude its work. Here, you would be bearing the cost of installing and maintaining the system.

Benefits of this model:

  • You’ll have full ownership of the solar PV system

  • Your electricity bills will be significantly lower

  • You’ll be eligible to avail Central Finance Assistance subsidies and tax benefits from the Government

  • Your company can fulfil its CSR obligations while you gain long-term benefits from the system

This model is ideal for those who would like to have full ownership of their solar PV system to generate their own solar electricity.

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