Solar Power Solutions | Swans Enterpises

OPEX (RESCO)

In OPEX (Open Expenditure) or RESCO model the client decides not to buy the solar energy plant but the solar energy produced by the solar energy plant. In this model the solar energy plant is installed and owned by company and the client is required to sign a Power Purchase Agreement (PPA) for purchasing the electricity from the solar energy plant at a specific rate for a certain period.

Ownership : RESCO owns the asset.
Investment : Zero upfront investment by the client.
What You Pay For : Only for the electricity generated.
Tax Benefits : No tax benefits.

CAPEX (EPC)

CAPEX Model (Capital Expenditure) EPC Model (Engineering, Procurement, and Construction) requires the client to pay the total cost of the solar energy plant upfront. This make sures that the client owns the energy plant and makes them eligible to avail tax benefit through accelerated depreciation. The Borrower would approach an EPC contractor for the installation of the project. The O&M(Operation and Maintenance) contract may be given to the same EPC contractor or some other person.

OWNERSHIP : Client owns the asset
INVESTMENT : 100% investment by the client.
WHAT YOU PAY FOR : Only for O&M after system purchase.
TAX BENEFITS : Client can avail tax benefit through accelerated depreciation.

Open Access

In order to use open access solar energy, a solar power plant must be built and a long-term power purchase agreement (PPA) must be made with consumers. The power provider agrees to provide a specified quantity of units yearly at a specified price as part of the PPA, which is valid for ten years. Through the use of state government subsidies, Intra-State Open Access Arrangements lower the net landed price of electricity for consumers while potentially providing tax advantages due to solar plant ownership.

Ownership : The power producer owns and operates the solar power plant.
Investment : Consumers enter into a 10-year Solar Power Purchase Agreement with the power producer.
What You Pay For : Consumers pay for the annual number of units of solar electricity as per the agreed pricing during the PPA duration.
Tax Benefits : Consumers may avail tax benefits through accelerated depreciation due to ownership of the solar energy plant.