In the near term, such as the next two to four years, the cost of solar energy is going to be too high for countries to consider it a viable primary energy source. The cost of commercializing solar energy is increased by the significant cost of constructing power plants and related infrastructure to distribute the energy to consumers. These costs are known as capital expenditures, or CAPEX, because they are incurred at the beginning of the project but will create future benefits.

Ground Mounted Capex

Straight forward sales model

most of the solar capacity in India is ground mounted and under policy based projects.This is the most common business model for solar deployment in India, an Engineering, Procurement and Construction (EPC) company, or individual components manufacturing company (such as modules or inverters) installs the system. The plant owner pays the full cost of the PV system upfront. This model (sometimes referred to as the ¡®CAPEX model¡¯) is pursued by the majority of solar companies,

Rooftop Capex

The bidder enters into an Agreement with the rooftop owner at the quoted project cost as per RFS for the scope of work not limited to that indicated in the RFS as per mutually agreed terms and conditions. This model also allows energy sale at a tariff as per RFS.

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