ANNOUNCEMENTS
India’s commitment to achieving net-zero greenhouse gas emissions by 2070 has placed renewable energy at the center of its long-term climate and energy strategies. However, the pace and inclusiveness of renewable energy adoption are heavily influenced by the financial models through which these technologies are deployed. This study presents a comparative analysis of two dominant models in India’s renewable energy sector CAPEX (Capital Expenditure) and OPEX (Operational Expenditure). While the CAPEX model offers long-term economic advantages through asset ownership and tax benefits, the OPEX model lowers entry barriers by allowing third-party ownership and service-based energy delivery.
Using ten case studies across industrial, institutional, and municipal sectors, supported by data from CleanMax Solar, IRENA, and other sectoral sources, the research evaluates the models across financial viability, operational efficiency, scalability, and environmental impact. Results show that while CAPEX delivers higher internal rates of return over time, OPEX enables faster deployment, higher system reliability, and broader accessibility, especially for SMEs and public institutions. The study also explores the strategic role of Renewable Energy Certificates (RECs) in enhancing project bankability and supporting India’s carbon reduction commitments.
The findings underscore that both models play complementary roles in accelerating India’s clean energy transition. The choice of financing approach should be aligned with the consumer’s financial capacity, operational priorities, and sustainability goals. The study concludes with policy and investment recommendations aimed at enhancing hybrid financing models, de-risking RE projects, and ensuring inclusive progress toward India’s net-zero targets.
