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- sales@kalpapower.com
- Pune, Maharashtra - 411045
For commercial and industrial (C&I) businesses in India, the question is no longer “Should we switch to solar?” The economics are undeniable: grid tariffs are rising, and sustainability mandates are tightening. The real question that stalls decision-making in the boardroom is: “How should we pay for it?”
Should you treat solar as a capital asset (CAPEX) or a service utility (OPEX)?
At Kalpa Power, we understand that every balance sheet is different. A cash-rich manufacturing giant has different financial priorities than a growing logistics firm preserving liquidity. That is why we don’t just sell panels; we engineer financial pathways.
As a leading provider of commercial solar solutions, we offer flexible engagement models—Turnkey EPC (CAPEX), Power Purchase Agreements (OPEX), and Deferred Payment structures—to ensure your transition to green energy aligns perfectly with your financial goals.
In the Capital Expenditure (CAPEX) model, your company invests 100% of the project cost upfront. Kalpa Power acts as your Commercial solar EPC (Engineering, Procurement, and Construction) partner, designing and building the plant. Once commissioned, you own the asset outright.
How Kalpa Facilitates This:
We deliver a high-performance asset designed for longevity. Since you own the plant, every unit of electricity generated is effectively free after the payback period (typically 3–4 years).
Why Choose CAPEX?
Ideal For: Companies with healthy cash reserves, high tax liabilities looking for depreciation benefits, and a desire for maximum long-term savings.
If your company prefers to keep capital unlocked for core business expansion, the Operational Expenditure (OPEX) model is the answer. Here, Kalpa Power (or our renewable investment partners) invests the capital to set up the solar plant on your roof or premises.
You simply sign a long-term Power Purchase Agreement (PPA) to buy the power generated at a tariff significantly lower than your grid rate.
How Kalpa Facilitates This:
We handle the investment, installation, and maintenance. You pay only for the units you consume. It transforms Commercial rooftop solar solutions from a product into a service.
Why Choose OPEX?
Ideal For: MNCs, large corporate campuses, and businesses that want green energy savings without blocking capital or managing asset maintenance.
What if you want to own the asset (CAPEX) to claim the tax depreciation benefits, but don’t want to drain your cash reserves immediately?
Kalpa Power bridges this gap through Deferred Payment Models and Loan Facilitation.
How Kalpa Facilitates This:
Ideal For: SMEs and mid-sized industries that want the tax benefits of ownership but need to manage cash flow.
| Feature | CAPEX (Turnkey) | OPEX (PPA) | Deferred / Loan |
| Investment | 100% Client | 0% Client (Kalpa/Investor) | 20-30% Margin Money |
| Asset Ownership | Client | Kalpa / Investor | Client |
| Cost of Power | Free (after payback) | Fixed Tariff (Pre-agreed) | Free (after loan tenure) |
| O&M Responsibility | Client (can outsource to Kalpa) | Kalpa / Investor | Client |
| Tax Benefit (AD) | Available to Client | Not Available to Client | Available to Client |
| Payback Period | 3–4 Years | Immediate Savings | ~5 Years (Loan tenure) |
The energy landscape is evolving. As states introduce Time-of-Day (ToD) tariffs and peak demand charges, solar alone may not suffice. Energy storage is the next frontier.
However, batteries are capital-intensive. This is where Kalpa’s financial modeling expertise becomes crucial. We are pioneering Commercial BESS solutions India (Battery Energy Storage Systems).
Whether you need BESS for Peak Shaving (reducing demand charges) or Power Backup (replacing diesel generators), we can integrate storage costs into your financial model. We analyze the arbitrage opportunity—storing cheap solar power and discharging it during expensive peak hours—to justify the investment to your CFO.
Choosing a financial model is not just a math problem; it is a strategic decision.
At Kalpa Power, we believe that financial constraints should never be a barrier to sustainability. Whether you want to own the asset to save tax or simply want cheaper power without the headache of ownership, we have a model that works.
Stop viewing energy as a cost center. Let us help you turn it into an asset.
Let’s run a comparative financial model for your facility. We will present the ROI for CAPEX vs. OPEX side-by-side so you can make an informed decision.
[Request Your Custom Financial Proposal]
1. Can I switch from OPEX to CAPEX later?
Yes, most Power Purchase Agreements (PPAs) include a “Buyout Clause.” This allows you to purchase the solar plant from the developer after a specific lock-in period at a pre-determined depreciated value. This offers flexibility if your company’s liquidity position improves in the future.
2. Is the CAPEX model risky regarding maintenance?
Not with Kalpa Power. Even if you choose the CAPEX model and own the asset, you can sign an Operation & Maintenance (O&M) contract with us. We will monitor and maintain the plant, ensuring it delivers the promised generation, while you enjoy the financial benefits of ownership.
3. How does Accelerated Depreciation benefit my business in the CAPEX model?
The Indian government allows commercial entities to claim 40% depreciation on solar assets in the first year. If your company is in the 25% tax bracket, investing ₹1 Crore in solar could save you approximately ₹10 Lakhs in taxes in the first year alone, significantly improving your first-year cash flow.
4. Are Commercial BESS solutions eligible for financing?
Yes. As energy storage becomes critical for grid stability, financial institutions are increasingly open to funding Commercial BESS solutions in India, especially when paired with solar projects that demonstrate a clear ROI through diesel savings or peak load reduction.