Solar System Business Models

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Solar system business models are different ways of installing, owning, and using solar energy systems, especially for homes, businesses, and institutions. These models define who pays for the system, who owns it, and how the energy or savings are shared.

Here’s a brief overview of the most common models:

CAPEX Model (Customer Owned)

The customer buys and owns the system by paying the full cost upfront.
They get 100% of the energy savings and benefits.
Ideal for: Homes, businesses with investment capacity.

OPEX Model / PPA (Power Purchase Agreement)

A solar company installs and owns the system.
The customer pays only for the electricity used (not the system).
No upfront cost; long-term agreement.
Ideal for: Factories, schools, hospitals.

Lease Model

Customer rents the solar system from a provider.
Pays a fixed monthly fee to use the system.
No ownership or large investment needed.

RESCO Model

A service company (RESCO) installs and operates the solar system.
Customer signs a long-term contract to buy power.
Suitable for large or public institutions.

Community Solar / Shared Solar

A shared solar plant supplies power to multiple users (e.g., apartment complexes).
Costs and benefits are divided among members.

These models help make solar energy more affordable, flexible, and accessible for different types of users.

FAQ

General Questions

There are three main types of solar energy systems, each designed for different needs and setups:

Grid-Connected (On-Grid) Solar System
Off-Grid Solar System
Hybrid Solar System

Yes, the Indian government offers several incentives and subsidies to promote the adoption of solar energy. These initiatives aim to make solar power more affordable and accessible for households, farmers, and businesses.

Launched in 2024, this central government scheme encourages homeowners to install rooftop solar panels by providing financial assistance.

Subsidy Details:

Up to 2 kW: ₹30,000 per kW (60% subsidy)
2–3 kW: ₹18,000 per kW (40% subsidy)
Above 3 kW: Total subsidy capped at ₹78,000

Solar energy helps reduce carbon emissions by replacing or reducing the use of fossil fuels, which are the main sources of carbon dioxide (CO₂) and other greenhouse gases. Here’s how it works in simple terms:

Clean Energy Source
Reduces Dependence on Fossil Fuels
Lower Emissions from Buildings
Slows Climate Change

A typical home solar panel system can reduce 3 to 4 tons of carbon emissions per year—that’s like planting over 100 trees every year!

Solar energy helps the planet breathe easier by providing a clean, sustainable alternative to polluting energy sources.

Yes, there are several financing options available for solar energy systems to make them more affordable for homeowners, businesses, and non-profits. Here are the most common ones, explained in simple terms:

Government Subsidies & Grants
Bank Loans (Solar Loans)
EMI / Installment Plans by Vendors
Lease or Power Purchase Agreement (PPA)
Crowdfunding or NGO Support (for non-profits)

Here are the main environmental benefits of solar energy, explained in simple terms:

Reduces Air Pollution
Fights Climate Change
Saves Water
Protects Wildlife and Ecosystems
Reduces Waste and Resource Use
Promotes Sustainable Living

Solar energy is a clean, safe, and earth-friendly way to produce power—helping us protect the planet for future generations.

Step-by-step explanation of how rooftop solar works:

Sunlight Hits the Solar Panels
Inverter Changes the Electricity
Power Your Home or Building
Excess Power is Sent to the Grid
Save or Earn with Net Metering
Use Grid Power at Night

The maintenance cost of a solar system is generally low, especially for rooftop solar panels. Here's a breakdown in simple terms:

Regular Cleaning
Annual Inspection / Servicing
Battery Maintenance (Only for off-grid or hybrid systems)
Inverter Replacement (Every 10–12 years)

Net Metering is a system that lets you sell extra solar electricity back to the power grid and get credit on your electricity bill.

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