Solar Solutions in the UAE

Solar Solutions in the UAE

OPEX Vs CAPEX

Whether your aim is to cut energy costs, reduce your carbon footprint, fulfill regulatory obligations or accomplish your sustainability goals, CleanMax has a solution for you.

When you are considering buying solar power, you would generally find two options in the market – Investing into a rooftop solar plant or buying solar power under a Solar Lease Agreement. Both the options can be availed under two models: the capital expenditure (CAPEX) model or the operating expenditure (OPEX) model. In this section, we help you make an informed decision by highlighting the differences between the two in terms of their merits and disadvantages, and which model suits your business better.

OPEX

Build-Own-Operate

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CAPEX

Ownership Model

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CleanMax owns the asset

Opex and Capex OWNERSHIP

OWNERSHIP

Customer owns the asset

Zero upfront investment by the customer and capital avoided can instead be invested into its core business

Opex and Capex INVESTMENT

INVESTMENT

100% investment borne by customer

Quickly replicable and scalable because additional projects don’t need internal CAPEX approvals

Opex and Capex MANAGEMENT APPROVAL TIMELINES

MANAGEMENT APPROVAL TIMELINES

Typically requires long lead time CAPEX approvals at the very senior/board levels

Pay only for electricity generated, no hidden costs

WHAT YOU PAY FOR in Opex and Capex

WHAT YOU PAY FOR

Pay only for O&M charges after system purchase, no tariff for solar electricity generated

Savings of 15-40% against the grid tariff from day 1

Opex and Capex RETURNS

RETURNS

Free power after initial investment. Payback between 6-10 years

Turnkey solution, therefore CleanMax bears O&M cost

Opex and Capex RETURNS

O&M

Customer pays separately for O&M

CleanMax handles all technical matters

TECHNICAL KNOW-HOW Opex and Capex

TECHNICAL KNOW HOW

Dedicated team needed at customer’s end to evaluate system design, installation and operation

CleanMax bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation

PERFORMANCE RISK in Opex and Capex

PERFORMANCE RISK

Customer bears all the performance risk and must manage equipment collection, downtime losses and changing weather conditions

  • CleanMax owns the asset
  • Customer owns the asset
  • Zero upfront investment by the customer and capital avoided can instead be invested into its core business
  • 100% investment borne by customer
  • Quickly replicable and scalable because additional projects don’t need internal CAPEX approvals
  • Typically requires long lead time CAPEX approvals at the very senior/board levels
  • Pay only for electricity generated, no hidden costs
  • Pay only for O&M charges after system purchase, no tariff for solar electricity generated
  • Savings of 15-40% against the grid tariff from day 1
  • Free power after initial investment. Payback between 6-10 years
  • Turnkey solution, therefore CleanMax bears O&M cost
  • Customer pays separately for O&M
  • CleanMax handles all technical matters
  • Dedicated team needed at customer’s end to evaluate system design, installation and operation
  • CleanMax bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely to generation
  • Customer bears all the performance risk and must manage equipment collection, downtime losses and changing weather conditions