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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. They can rather spread the cost over time. 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 benefits, without making a large initial investment. This model makes it easier for more people to go solar and contribute to a cleaner and sustainable future without the financial burden of buying the system outright.

Opex

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 Matgrow Renewables, 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.

Capex

In the Capex model, you, the power consumer, take ownership of the solar asset. Matgrow Renewables 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, Matgrow Renewables 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’sNot 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

Parameter

Asset Ownership
Electricity Regulator viewpoint
Accelerated Depreciation benefits
Payment Structure
Generation Risk
GST Credit on consumption of power
Collaterals required for lender
Contracts Required
Land

Typical PPA Model

74% Equity Ownership by Developer26%
Equity Ownership by Customer

Group Captive wherein CSS is not applicable; Additional
Surcharge might be applicable

Accrue to Developer

Payment = Tariff x Energy generation

Payments linked to Generation

Applicable as it’sNot sale of electricity

Customer provides BGs to SPV
Developer pledges SPV shares to lender and also hypothecates assets to lender
Power Purchase Agreement Investment agreement for 26% Equity requirements Group Captive
Owned by Developer

Deferred CAPEX

Transferred to customer’s books on Day 1 for an EPC advance
100% Captive asset; CSS and Additional Surcharge are not applicable
Accrue to Consumer
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
Payments linked to Generation

GST input credit can be availed as it is generation linked payment

Customer provides BGs to candi
Customer hypothecates asset in favor of lender
Supply, loan & hypothecation Agreement Land Lease Agreement Generation linked O&M Agreement
Owned by Developer Leased to Consumer for nominal value