RESCO & CAPEX MODEL

CAPEX is the most common form of solar power plant business model i India. In this model consumer generally hire a solar EPC company who provide turnkey installation of entire solar power system and hand over assets to consumers Therefore, it is very important for the consumer and the investors that they choose the right business model to minimize the risks and maximize their ROI. 

 Various customers across India and overseas are confused between the 2 models. There have been several instances wherein customers who were absolutely sure of going for RESCO have eventually switched over to CAPEX and vice-versa., after carrying out an in-depth discussion with the System installer.

A Renewable Energy Service Company (RESCO) is an ESCO Energy service company which provides energy to the consumers from renewable energy sources, usually solar photovoltaics, wind power or micro hydro. RESCO or BOOT model is about pay as you consume the electicity.

The RESCO constructs, owns, operates and transfers the ownership of the rooftop solar project to the customer (Rooftop Owner) after expiry of contract period or as per agreed terms.