OPEX vs CAPEX Solar — Which Should You Choose?
CAPEX means buying the system outright. You pay once, own the asset, and keep all savings. OPEX (PPA/RESCO) means a developer installs and owns the system, and you buy the electricity at a discounted rate.
When to Choose CAPEX
- You have capital available or can get a solar loan at <10% interest
- You want to claim 40% accelerated depreciation (businesses)
- Long-term ownership and maximum savings matter
When to Choose OPEX
- Zero upfront investment required
- You lease or rent your premises
- You don't want maintenance responsibility
Verdict: CAPEX almost always wins financially by year 6–8. OPEX wins on convenience and zero risk.