For businesses looking to adopt solar energy without heavy upfront investment, the Opex Model has emerged as a game-changer. Also known as the RESCO Model or Solar PPA (Power Purchase Agreement), this approach allows companies to enjoy clean, affordable energy while keeping their capital free for core operations.
In this blog, we’ll explain how the Solar Opex Model works, why it’s growing in popularity, and how it can cut costs and boost profits for businesses.
What is the Solar Opex Model?
In the Opex Model, a third-party investor (usually a Renewable Energy Service Company – RESCO) installs, owns, and maintains the solar plant on the consumer’s premises. The business does not pay any upfront capital. Instead, it buys the generated electricity at a fixed tariff through a long-term Power Purchase Agreement (PPA), usually ranging from 10–25 years.
This way, the consumer avoids large capital expenditure, reduces dependency on grid power, and pays only for the energy consumed.
Key Features of the Solar Opex Model
- Zero upfront investment – The RESCO funds the solar plant.
- Pay-per-unit model – Businesses are charged only for the energy consumed.
- Long-term PPA – Stable energy pricing for years ahead.
- Operation & Maintenance included – All plant upkeep is handled by the service provider.
- Scalability – Companies can expand their solar usage without financial burden.
How Solar PPAs Cut Costs
- Cheaper than grid power
Solar tariffs under PPAs are usually 20–40% lower than prevailing grid rates, directly reducing energy bills. - No maintenance cost
Since the RESCO handles all O&M expenses, businesses save on technical staff and repair costs. - Predictable energy expenses
Fixed tariff contracts shield businesses from fluctuating grid prices, making financial planning easier. - Tax & sustainability benefits
Even without asset ownership, businesses can showcase their green energy use for ESG reporting and brand value.
How Solar PPAs Increase Business Profits
- Improved cash flow – No capital tied up in solar infrastructure, so funds can be used for core operations.
- Energy savings as direct profit – Lower energy costs increase net margins.
- Sustainability advantage – Eco-friendly practices attract investors, customers, and long-term contracts.
- Scalable growth – Businesses can expand operations without worrying about rising power bills.
Opex vs. Capex Model – Which One Should You Choose?
- If you have strong capital availability and want full ownership, the CAPEX Model is best.
- If you prefer zero investment and guaranteed savings, the Opex Model with a Solar PPA is ideal.
Final Thoughts
The Solar Opex Model is a smart choice for businesses aiming to cut electricity costs and maximize profits without heavy investment. By signing a Solar PPA, you not only enjoy cheaper, predictable energy but also strengthen your brand’s sustainability credentials.
In today’s competitive market, energy savings directly translate into business growth. The Opex Model makes solar accessible, profitable, and future-ready.
