What are the CAPEX and OPEX model?

May 31, 2017

In OPEX model, the investor owns the asset whereas in CAPEX model, the end consumer can own the asset and save taxes by claiming accelerated depreciation. In OPEX model, the consumer and the producer enter a PPA (Power Purchase Agreement) for a predetermined period of time typically in between 10-25 years. During this tenure, the consumer pays the producer for the power generated at a decided tariff while the producer is liable to perform all the operations and maintenance activities.