Key Features of the CAPEX Model

1. Ownership of the System:

In the CAPEX model, the consumer invests in and owns the solar or wind energy system. This allows the consumer to reap the full financial and energy benefits over the system's lifetime (typically 25+ years).

2. On-site Solar/Wind:

The energy system (solar panels or wind turbines) is installed on-site, either on rooftops or ground-mounted, ensuring direct access to the energy generated. This helps consumers reduce dependency on grid power.

3. Upfront Investment:

The primary feature of the CAPEX model is that it requires an upfront capital investment for the purchase and installation of the system. The payback period can vary depending on energy consumption and savings but typically ranges between 3–7 years.

4. Accelerated Depreciation:

In many countries, businesses can take advantage of accelerated depreciation benefits for renewable energy projects. This allows the business to depreciate the asset faster, resulting in significant tax savings in the first few years. This financial incentive helps reduce the net cost of the system.

5. Long-term Savings:

Once the initial investment is recovered through energy savings, the consumer enjoys free or highly reduced energy for the remainder of the system's life. Solar or wind energy systems typically have a lifespan of 25+ years, which can translate to decades of low-cost energy after the payback period.

6. Sustainability and Energy Independence:

Owning a renewable energy system provides the consumer with energy security and independence from rising grid tariffs. It also contributes to the consumer's sustainability goals by significantly reducing carbon emissions.

7. Rooftop and Ground-mounted Installations:

Rooftop Solar/Wind: Ideal for businesses, factories, or homes with adequate rooftop space. This option reduces space usage and maximizes energy generation on-site. Ground-mounted Solar/Wind: Suitable for businesses or organizations with larger areas of unused land, such as industrial parks or agricultural fields, allowing for large-scale energy production.

8. Government Subsidies and Incentives:

Many governments offer financial subsidies or rebates for installing solar or wind systems, further reducing the capital cost. In some cases, net metering policies allow owners to feed surplus energy back into the grid, providing additional revenue or savings.