Hi everyone, Those who all have any query regarding multiple financing models in solar project can go through this document. Thanks!

1. Rooftop/Ground Mount
Solar
Financial Models

2. Various Models
S.No Comparison Point CAPEX OPEX Lease
1
Ownership of the
plant
Customer EPCComp. -Till the tenure of the PPA Leasing Partner
2 Investment
Customer invests directly in
the plant and places an EPC
(Engineering, Procurement
and ConstructionOrder on
EPCComp. . O&MOrder can
be placed separately
EPCCompany invests the initial CAPEX
and maintains the plant till the tenure of
the PPA
Financial Institution invests the major
amount in CAPEX and in-turn leases the
plant to Customer. EPC order places by
Financial Institution to EPCCompany.
O&M order can be directly placed by
Customer to EPCComp.
3 AgreementType
Engineering Procurement
and Construction
Power Purchase Agreement LeaseAgreement
4 Cash flow
Initial investment by
Customer only O&M cost to
be born separately after
commissioning of the project
Monthly electricity charge at a pre-fixed
rate till the tenure of the Agreement
Monthly EMI to be paid till the lease
period
5 Feasibility Available in all States
Not available in States like Karnataka and
Gujarat
Depends on location and assessment by
Financial Institution
Various Financial Models

3. Ownership with
Customer
Own Investment
EPC Agreement with
Vendor
Operation &
Maintenance by
Customer
Lower Electricity
Cost
CAPEX Model

4. Pros & Cons - CAPEX
S.No Pros Cons
1
Ownership of the plant with customer which
provides flexibility in future expansion and
changes
High initial investment of close INR 46.2 Cr.
2
Accelerated depreciation benefit of 40%
availableYear onYear
Operation and Maintenance of solar plant including
the risk of generation.
3
ROI of just around 3 years. Post which free
electricity from solar plant with minimal
O&MCost of around 1.5% of the project cost
per year
Replacement of components, if required. Mandatory
replacement of Inverters every 10-12 years.
4 Higher overall savings

5. OPEX Model
Ownership with EPC
Solar Company
Initial Investment by
Solar EPC Company
Power Purchase
Agreement for
10/15/25 years
Operation &
Maintenance by
Solar EPC Company
Solar electricity
cheaper than Grid
electricity

6. Pros & Cons - OPEX
S.No Pros Cons
1
Hassle free installation and Maintenance as
end to end responsibility of EPCComp.
Low Flexibility ofOperations as long term agreement
signed
2
Entire Operation and Maintenance of plant
including equipment repair/replacement by
EPC Comp. Power for 15 years.
NoAccelerated depreciation available
3 No Initial investment LowerOverall savings over a period of 25 years
4
No risk ofGeneration as O&M taken up by
EPC Comp.
No Link between PPATariff and Grid tariff. Risk of PPA
tariff to be more than Grid tariff

7. Lease Model – Financial /
Operational
Ownership with
Solar EPC Company
Initial Investment by
Solar EPC Company
LeaseAgreement for
3 to 8 years
Operation &
Maintenance by
Solar EPC Company
Insurance to be
taken by customer
ResidualValue in
case of Operational
Lease

8. Pros & Cons - LEASE
S.No Pros Cons
1
Hassle free installation and Maintenance as
end to end responsibility of EPC Comp.
Low Flexibility ofOperations as long term agreement
signed
2
Accelerate depreciation benefit given to the
customer
Residual value in case of Operational Lease
3
Minimal initial investment (only 20-25% of
Security deposit)
Generation risk with the Customer
4
Interest benefit of SD transferred to the
customer
LowerOverall savings over a period of 25 years
5
No Link between Lease value and Grid tariff. Risk of
savings to be reduce if grid tariff reduces.

9. Thank You!