{"id":647,"date":"2026-03-30T11:04:57","date_gmt":"2026-03-30T11:04:57","guid":{"rendered":"https:\/\/vishakharenewables.com\/blog\/?p=647"},"modified":"2026-03-30T11:08:08","modified_gmt":"2026-03-30T11:08:08","slug":"solar-financing-models-for-starting-a-solar-business","status":"publish","type":"post","link":"https:\/\/vishakharenewables.com\/blog\/solar-financing-models-for-starting-a-solar-business\/","title":{"rendered":"Solar Financing Models for starting a Solar Business"},"content":{"rendered":"

Are you thinking about switching to solar energy but are worried about how much it would cost at first? You’re not the only one. If you own a home or a solar business and want to use the power of the sun without spending a lot of money, the good news is that there are several types of financing that have been made just for this purpose.<\/span>
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\n<\/span> In this blog, we’ll talk about the basics of solar financing models, breaking down how each one works and looking at what makes them different from each other. In the end, you’ll know more about how to pay for your solar journey in a way that works with your budget and your goals. Why solar makes financial sense in India today electricity bills in India rarely go down. Whether it\u2019s a household running acs in summer or a factory operating heavy machinery, energy costs keep rising year after year.<\/span>
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\n<\/span> Solar offers a way out. Instead of paying the utility company every month; you generate your own electricity. And with financing models available, you don\u2019t have to block your savings to make that switch.<\/span>
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\n<\/span> The government is also working hard to get people to use solar electricity on their roofs. The Prime Minister’s Surya Ghar Yojana initiative gives families the chance to earn subsidies of up to \u20b978,000 and even access to acceptable financing choices. This makes solar energy much cheaper than it used to be. So, the question that needs to be posed is no longer “Can I afford solar?” The question is, “Which model works best for me?” two distinct ways to look about paying for solar energy. In India, solar financing broadly falls into two categories:<\/span>
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\n<\/span> 1. You own the system (capex \/ loans). You either pay upfront or take a loan and own the solar setup.<\/span>
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\n<\/span> 2. Someone else owns it (opex \/ ppa \/ leasing). A third party installs and manages the system\u2014you just use the electricity. Each has its own advantages depending on your financial situation and long-term plans.<\/span>
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\n<\/span> Option 1: Direct Ownership (Capex & Loans) or Paying Upfront (Capex Model)<\/b>
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\n<\/b> This is the simplest approach\u2014you pay for the system and own it completely. At first glance, it may feel expensive. But in India, subsidies significantly reduce the cost.<\/span>
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\n<\/span> For Residential Users<\/b>
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\n<\/b> Up to 40% subsidy for smaller systems (up to 3 kw). Direct benefit transfer into your bank account after installation. In states like Gujarat, additional state subsidies can further reduce the cost, sometimes bringing down the effective investment dramatically.<\/span>
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\n<\/span> Why people still choose capex?<\/b><\/p>\n