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Opex Model

About
Opex Model
According to a Renewable Power Purchase Arrangement (PPA), a Renewable Energy Service Company (RESCO) will install and maintain a customer's solar power plant at their site. The RP, which refers to a typical 10-year contract, results in monthly payments for a percentage of the customer's power generated. The Opex model reduces investment risk and avoids the expense of creating a Capex investment, enabling customers to pay for only the actual power produced with zero large assets. This creates a more cost-effective Opex model upfront. Even with a Power Purchase Agreement, the energy is significantly cheaper than grid power. The OPEX model is well-suited to small businesses with planned growth aiming to incorporate more environmentally friendly processes.
Highlights
Solar Power Plant is owned by the RESCO and ENERCO (Energy Company).
The customer service does not own any rights on the solar energy system.
Customers must sign the Power Purchase Agreement (PPA) with an actual investor at a mutually agreed tariff and tenure.
RESCO developer is responsible for its annual operation and maintenance.
RESCO gets the benefit by selling surplus power generated to the DISCOM.
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