Solar Glossary
FINANCIAL MODELS

CAPEX Model

In the CAPEX model, the consumer pays for and owns the solar plant outright, capturing the full electricity savings from day one. It delivers the best lifetime economics for anyone who can deploy the capital.

Typical Indian paybacks run 3–5 years for commercial consumers and about 4 years for subsidised homes, followed by ~20 years of near-free power. Businesses add accelerated depreciation benefits on top.

Part of the HUM Solar Glossary — 75+ plain-language definitions for India’s solar ecosystem, maintained as a neutral reference. Browse all terms →