Business Model

Deferred Capex

The Deferred Capex model is a way for individuals or companies to own a solar power system without having to pay the entire cost upfront. It’s like a “pay-as-you-go” plan for solar energy, where you get the benefits of owning the solar asset—such as reduced electricity bills and environmental impact—without a large initial investment. This model makes solar more accessible, enabling more people and organizations to embrace clean energy and build a sustainable future without financial strain.

Key Benefits of Deferred Capex:

  • ✅ No large upfront investment — Spread payments over time with flexible financial terms
  • ✅ Immediate savings — Enjoy reduced electricity bills from day one
  • ✅ Ownership advantage — You still own the system and benefit from incentives
  • ✅ Promotes sustainability — A cost-effective path to a greener, cleaner future

Opex Energy Model

You can avail hassle-free access to renewable energy with the Opex model as there is no upfront investment or performance risk. The solar project is owned by Zero Energy, and you only pay for the energy you use, usually at prices that are 20–40% less than grid tariffs. Take advantage of our solar, wind, or wind-solar hybrid solutions to get clean energy all day long, combined with energy storage. Our team takes care of all maintenance and operation for 25 years. Sign a Power Purchase Agreement (PPA) with us to save on power bills, making sustainability an easy and cost-effective solution. Embrace the future of energy with the Opex model.

  • ✅Hassle-Free Power

    No performance risks or hidden charges—just stable, clean energy delivered at lower-than-grid rates.

  • ✅Long-Term Benefits

    Enjoy up to 40% savings and 25 years of maintenance-free, uninterrupted renewable energy.

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Capex Model

In the Capex model, you, the power consumer, take ownership of the solar asset. Zero Energy installs the energy plant, be it an off-site wind/solar/wind-solar hybrid farm or a rooftop solar plant, while you pay for the equipment, design, installation, and commissioning costs. Under an operation and maintenance agreement, our skilled engineers assure effective plant operations with an annual contract. This approach provides advantages such as a reduced carbon footprint and a chance to claim tax benefits through rapid depreciation. Own the asset, embrace sustainability, and reap long-term rewards with the Capex model.

Group Captive Structure

With a group captive structure, multiple companies can work together to gain from a shared solar power project. They can share the expense and benefit from renewable energy by grouping to own and use the energy produced. Together, the industries, companies, or institutions – in the group can meet their renewable energy needs thanks to this concept. It results in scale economies and increased energy security. As a facilitator, Zero Energy facilitates a cooperative and sustainable approach through the Group Captive Structure. It enables everyone to have access to clean energy and promotes a more environmentally friendly future for the community as a whole.

Typical PPA vs Deferred CAPEX Model

Deferred CAPEX vs Typical Group captive PPA model have differences relating to asset ownership, captive status, accelerated depreciation benefits, payment structure, contract requirements, payables composition, etc.

Parameter Typical PPA Model Deferred CAPEX
Asset Ownership
74% Equity Ownership by Developer26% Equity Ownership by Customer
Transferred to customer’s books on Day 1 for an EPC advance
Electricity Regulator viewpoint
Group Captive wherein CSS is not applicable; Additional Surcharge might be applicable
100% Captive asset; CSS and Additional Surcharge are not applicable
Accelerated Depreciation benefits
Accrue to Developer
Accrue to Consumer
Payment Structure
Payment = Tariff x Energy generation
Total Payment = Tariff x Energy generation Structured differently as: Generation linked O&M Payments (with incentives/LDs linked to generation) Part of the payment divided against and loan and generation
Generation Risk
Payments linked to Generation
Payments linked to Generation
GST Credit on consumption of power
Applicable as it’s Not sale of electricity
GST input credit can be availed as it is generation linked payment
Collaterals required for lender
Customer provides BGs to SPV Developer pledges SPV shares to lender and also hypothecates assets to lender
Customer provides BGs to candi Customer hypothecates asset in favor of lender
Contracts Required
Power Purchase Agreement Investment agreement for 26% Equity requirements Group Captive
Supply, loan & hypothecation Agreement Land Lease Agreement Generation linked O&M Agreement
Land
Owned by Developer
Owned by Developer Leased to Consumer for nominal value