Comparing OPEX Vs. CAPEX Solar Models:
Which One Is Right For You?

OPEX Vs CAPEX

Transitioning to solar energy represents a significant step towards sustainability and financial savings for your business. However, before embracing this eco-friendly shift, it’s vital to understand the fundamental choices in solar energy procurement.

In the solar market, two primary options emerge: investing in a rooftop solar system or opting for solar power through a Power Purchase Agreement (PPA). Each of these choices is available in two distinctive models: Capital Expenditure (CAPEX) and Operating Expenditure (OPEX).

In this section, we aim to empower your decision-making process by shedding light on the disparities between these models. We will delve into their respective advantages and drawbacks, helping you discern which approach aligns best with your business objectives.

OPEX Vs CAPEX

Transitioning to solar energy represents a significant step towards sustainability and financial savings for your business. However, before embracing this eco-friendly shift, it’s vital to understand the fundamental choices in solar energy procurement.

In the solar market, two primary options emerge: investing in a rooftop solar system or opting for solar power through a Power Purchase Agreement (PPA). Each of these choices is available in two distinctive models: Capital Expenditure (CAPEX) and Operating Expenditure (OPEX).

In this section, we alm to empower your decision-making process by shedding light on the disparities between these models. We ll delve into their respective advantages and drawbacks, helping you discern which approach aligns best with your business objectives.

OPEX Vs CAPEX

Transitioning to solar energy represents a significant step towards sustainability and financial savings for your business. However, before embracing this eco-friendly shift, it’s vital to understand the fundamental choices in solar energy procurement.

In the solar market, two primary options emerge: investing in a rooftop solar system or opting for solar power through a Power Purchase Agreement (PPA). Each of these choices is available in two distinctive models: Capital Expenditure (CAPEX) and Operating Expenditure (OPEX).

In this section, we alm to empower your decision-making process by shedding light on the disparities between these models. We ll delve into their respective advantages and drawbacks, helping you discern which approach aligns best with your business objectives.

CRITERIA



  • OWNERSHIP
  • INVESTMENT

  • MANAGEMENT APPROVAL TIMELINES
  • WHAT YOU PAY FOR
  • PER UNIT SAVING
  • O&M
  • PAYBACK
  • TECHNICAL KNOW HOW

  • PERFORMANCE RISK

  • REGULATORY RISK AND APPROVALS

OPEX

Operating Expenditure
  • Kanoo CleanMax owns the asset.
  • Zero upfront investment by the
    customer Can instead invest
    that capital into its core business.
  • Quickly replicable and scalable because additional projects don't need internal CAPEX approvals.

  • Pay only for electricity generated, no hidden costs.

  • 20-40% cheaper than Grid electricity Tariff
  • Turnkey solution, therefore CleanMax bears O&M cost.

  • Savings from day 1 (Zero days).

  • Kanoo CleanMax
    handles all technical matters.

  • Kanoo CleanMax bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation.
  • Kanoo CleanMax prerogative.
Know More

CAPEX

Operating Expenditure
  • Customer owns the asset.

  • 100% investment borne by customer.

  • Typically requires long lead time for CAPEX approvals at senior management level.
  • Pay only for O&M charges after system purchase, no tariff for solar electricity generated.

  • Capital repaid through generated electricity.

  • Customer pays separately for O&M.

  • As high as 4 years.

  • Dedicated team needed at customer's end to evaluate system design, installation and operation.
  • Customer bears all the performance risk and must manage equipment & downtime losses.


  • Owners prerogative.
Know More

CRITERIA

  • OWNERSHIP

  • INVESTMENT

  • MANAGEMENT APPROVAL TIMELINES

  • WHAT YOU PAY FOR
  • PER UNIT SAVING
  • O&M
  • PAYBACK

  • TECHNICAL
    KNOW HOW

  • PERFORMANCE
    RISK
  • REGULATORY RISK AND APPROVALS

OPEX

Operating Expenditure
  • Kanoo CleanMax owns the asset.
  • Zero upfront investment by the
    customer Can instead invest
    that capital into its core business.
  • Quickly replicable and scalable because additional projects don't need internal CAPEX approvals.

  • Pay only for electricity generated, no hidden costs.

  • 20-40% cheaper than Grid electricity Tariff
  • Turnkey solution, therefore CleanMax bears O&M cost.

  • Savings from day 1 (Zero days).

  • Kanoo CleanMax handles all technical matters.
  • Kanoo CleanMax bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation.

  • Kanoo CleanMax prerogative.
Know More

CAPEX

Operating Expenditure
  • Customer owns the asset.



  • 100% investment borne by customer.
  • Typically requires long lead time for CAPEX approvals at senior management level.
  • Pay only for O&M charges after system purchase, no tariff for solar electricity generated.

  • Capital repaid through generated electricity.

  • Customer pays separately for O&M.

  • As high as 4 years.
  • Dedicated team needed at customer's end to evaluate system design, installation and operation.

  • Customer bears all the performance risk and must manage equipment & downtime losses.


  • Owners prerogative.
Know More

CRITERIA

  • OWNERSHIP
  • INVESTMENT
  • MANAGEMENT APPROVAL TIMELINES
  • WHAT YOU PAY FOR
  • PER UNIT SAVING
  • O&M
  • PAYBACK
  • TECHNICAL KNOW HOW
  • PERFORMANCE RISK
  • TAX BENEFITS
  • REGULATORY RISK AND APPROVALS

OPEX

Operating Expenditure
  • Kanoo CleanMax owns the asset.
  • Zero upfront investment by the
    customer Can instead invest
    that capital into its core business.
  • Quickly replicable and scalable because additional projects don't need internal CAPEX approvals.
  • Pay only for electricity generated, no hidden costs.
  • 20-40% cheaper than Grid electricity Tariff
  • Turnkey solution, therefore CleanMax bears O&M cost.
  • Savings from day 1 (Zero days).
  • Kanoo CleanMax handles all technical matters.
  • Kanoo CleanMax bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation.
  • No Tax benefits for customer.
  • Kanoo CleanMax prerogative.
Know More

CAPEX

Operating Expenditure
  • Customer owns the asset.
  • 100% investment borne by customer.
  • Typically requires long lead time for CAPEX approvals at senior management level.
  • Pay only for O&M charges after system purchase, no tariff for solar electricity generated.
  • Capital repaid through generated electricity.
  • Customer pays separately for O&M.
  • As high as 4 years.
  • Dedicated team needed at customer's end to evaluate system design, installation and operation.
  • Customer bears all the performance risk and must manage equipment & downtime losses.
  • Customer can claim tax benefit through accelerated depreciation.
  • Owners prerogative.
Know More

@ Copyright All Rights Reserved 2023 I Kanoo CleanMax

@ Copyright All Rights Reserved 2023 I Kanoo CleanMax

@ Copyright All Rights Reserved 2023 I Kanoo CleanMax

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