Introduction

Owning your own solar plant isn’t just about clean energy—it’s a smart investment. With a CAPEX (Capital Expenditure) model, your business pays upfront for the system and gains complete ownership of the asset. That means you get full control, full savings, and long-term returns that improve your bottom line year after year.

In this blog, we break down how much you can save with a CAPEX solar project, what it costs to set up, and how soon you start seeing a return.

1. What Is the CAPEX Model in Solar?

In the CAPEX model, your business funds the entire solar project—design, materials, installation, and commissioning. Unlike third-party models (like OPEX or PPA), you don’t pay per unit of electricity. You own the system and the energy it generates from day one.

Key Features of CAPEX Solar:

• One-time upfront investment

• Lifespan of 25+ years

• Full ownership of the asset

• No recurring payments to third parties

• Eligible for depreciation benefits

This model is ideal for companies that have available capital and want to maximize long-term gains.

2. Cost vs. Savings: What’s the Math?

Let’s break it down with a typical example.

Example: 100 kWp Rooftop Solar Plant

ItemApproximate CostTotal system cost (₹45–55/Wp)₹45–55 lakhsMonthly savings on electricity₹75,000 – ₹1,00,000Annual savings₹9–12 lakhsPayback period4–5 yearsExpected lifespan25 years

Total savings over 25 years: ₹2 to ₹2.5 crore, after recovering the initial cost.

These numbers vary by location, state subsidies, power tariff, and plant size—but the pattern is clear: solar pays for itself and more.

3. Financial Incentives That Improve ROI

A CAPEX solar plant qualifies for certain tax and financial benefits:

• Accelerated Depreciation under Section 32 of the Income Tax Act
  (Up to 40% depreciation in the first year)

• GST Credits on equipment and services

• Net Metering, where available, offsets your grid usage

• No Monthly Charges like in lease or OPEX models

These benefits reduce your payback time and increase your return on investment.

4. Solar Is a Low-Risk, High-Return Asset

Unlike other investments that fluctuate, solar offers fixed, measurable savings. Once installed, the system has no fuel cost, low maintenance, and minimal downtime if designed right. Most solar panels come with 25-year performance warranties, and inverters now last 8–12 years with proper upkeep.

In financial terms, a well-executed solar plant delivers 15–20% internal rate of return (IRR)—which is better than many mutual funds or fixed deposits.

5. Control Your Energy Future

Owning your own solar plant means you’re no longer at the mercy of tariff hikes or grid instability. You know exactly how much you’re saving every month, and you can forecast your energy costs for years to come. For industries with tight margins, this predictability is a major advantage.

Conclusion

A CAPEX solar project is one of the most solid long-term investments a business can make. It reduces operating costs, improves profit margins, and delivers clean energy with full ownership.

At SVPL Solar, we design and install CAPEX systems tailored to your load, location, and budget. With top-grade components, remote monitoring, and long-term performance support, your investment is in safe hands.

Ready to see how much you could save? Let’s run the numbers.

Let me know if you want this edited for a brochure, PDF guide, or visual content like carousels or graphs.