500 kW Solar Power Plant Cost in Gujarat: Complete Price & Savings Guide
Nov 26
Why businesses need CAPEX Solar Model in 2025?
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With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions.
Why businesses need CAPEX Solar Model in 2025-26?
Captive solar power plants are getting fast acceptance by industrial and commercial consumers to access cheap reliable energy. Businesses can save unstable grid tariffs by installing dedicated solar generation and stabilize the long-term power costs. Open access solar policies. now allow large users (<=≥1000 kW) to purchase power directly with the producers of solar power. This avoids the local utility tariffs, which is cheaper and predictable electricity, and firms can satisfy Renewable Purchase Obligations (RPOs). Such economic and sustainability drivers make captive solar an even more popular solution to business in 2025-26.
GSE Renewables is a reliable Solar EPC company offering end-to-end support of the project design and implementation to the management of the assets of the rooftop and open access solar solutions in CAPEX solar model and solar O&M services. Flexible financial models such as CAPEX, OPEX, and deferred-CAPEX in rooftop solutions and Captive, Group-Captive in open access solutions as well as transaction advisory and financing support will enable businesses to maximize ROI and at the same time generate efficient and sustainable energy.
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Introduction to CAPEX Solar Model
CAPEX solar power plant is normally an on-site solar facility, which can be rooftop solar or ground mounted solar mounted on the premise of a company to satisfy its own demand. This is a behind-the-meter installation, which supplies power directly to the factory, campus or office which it serves. On-site plants reduce transmission losses and protect critical loads, which guarantees continuous supply. They are suited to large users who have available land or roof space (e.g. manufacturing units, data centers, hospitals) and want to achieve as much energy autonomy as possible and instant payback on the avoided grid purchases.
Captive Solar Power Plant
Captive solar is constructed in an isolated location, and the energy is transported to the customer using the utility grid under open-access conditions. Regulatory favors are also given to captive solar users in India such as cross-subsidy and other surcharges are not imposed on qualifying captive projects. The outcome is reduced unit cost of energy and reduced ROI. This model is applicable in firms that do not have space in their premises or those that have several locations.
Benefits of Captive Solar
A Captive Solar Project through a CAPEX Solar model offers several advantages. It ensures full ownership of the solar asset, enabling tax benefits such as accelerated depreciation and GST credits. By generating electricity off-site for the organization’s consumption, it provides long-term cost savings and greater energy independence.
- Lower Energy Costs: Captive solar can reduce industrial electricity bills by roughly 40-50% 30–40% compared to conventional grid power. Solar plant tariffs are typically lower and fixed, whereas utility rates fluctuate.
- Regulatory & Financial Incentives: Captive solar often qualifies for tax breaks (like accelerated depreciation) and capital subsidies under renewable schemes. Surplus energy (up to 49%) may be sent back to the grid and can be consumed depending upon the MYT Orders. sold back to the grid at regulated rates. Together, these incentives enhance project economics and shorten payback.
- Long-Term Price Stability: Unlike grid tariffs that change frequently, captive solar lets companies lock in a fixed tariff for 15–25 years. This protects against rising energy rates and market volatility. Engineering, Procurement & Construction contract (EPC Contract) or ownership ensure predictable bills.
Steps to Set Up a Captive Solar Power Plant
At GSE Renewables, we follow a systematic, step-by-step approach to install captive solar power plants using the CAPEX solar model.
Feasibility Study & Site Survey
- We assess the energy consumption per year, the peak loads and operating hours of a business to gauge the solar irradiance and offer rooftop/land and grid connectivity.
- The result is an optimal capacity sizing, a preliminary layout and a financial model (CAPEX Solar/OPEX, payback, LCOE).
Select Model & Structure SPV
- Select between single-owner captive, off-site open-access captive model.
- In the case of group projects we establish an SPV and institutionalize equity share and consumption commitment to pass regulatory requirements and ease approvals.
Regulatory Approvals and Interconnection
- We make and file all statutory applications (open-access clearances, SLDC/DISCOM approvals, grid connectivity, NOCs and environmental permits).
- The PPA/interconnection terms, such as wheeling/ banking and any state-specific charges, are also negotiated with us.
Financing
- Financing Financing We finance (debt/equity) and choose qualified EPC and component suppliers (technical, commercial warranty) suppliers.
- Contracting includes performance guarantees, milestones payment schedules and long term ownership.
Operations, Maintenance and Performance Management
- Post-commissioning: we introduce digital monitoring, KPI dashboards and formal O&M program (preventive maintenance, panel cleaning, inverter checks).
- The O&M contract will have warranty management and performance guarantees to maintain the uptime of the plant and captive utilization ≥51%.
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Financial Models of Captive Solar Power Plant
The financial models for captive solar projects offer different structures to suit varying business needs. This table outlines the key features of each model.
| Feature | CAPEX | OPEX / PPA | Loan/Lease Hybrid |
|---|---|---|---|
| Upfront Cost | High (100% CAPEX) | Zero | Moderate (30–80% CAPEX) |
| Ownership | Yes | No | Yes |
| Tax Incentives | AD, GST credit, RECs | Benefits accrue to the provider | Shared |
| Maintenance Responsibility | Company / EPC | Developer | Shared or contracted |
| Energy Tariff Cost | Lowest LCOE | 20–40% cheaper vs. grid | Between CAPEX & OPEX |
| Complexity | High (O&M, financing) | Low (PPA-based) | Moderate |
| Suitability | Companies with CAPEX & control | Businesses needing simplicity | Balance of cost and control |
Captive Solar ROI & Payback Period
This table outlines the financial performance metrics of captive solar power plants, focusing on the ROI and payback periods under the captive solar power plant policy.
| Installation Type | Capacity | CAPEX (Approx.) | Annual Savings | Payback Period | ROI Estimate |
|---|---|---|---|---|---|
| Rooftop Solar (Industrial) | 1 MW | ₹4–4.5 Cr | ₹65–80 Lakhs | 4–6 years | 20–25% |
| Ground-Mount Captive Plant | 2 MW | ₹8–9 Cr | ₹1.5–1.8 Cr | 4–5 years | 22–30% |
| Captive Open Access Plant | Varies | Shared investment | ₹30–90 Lakhs/user | 3–5 years | 20–28% |
Top Industries Uses Captive Power Plants
The following are the main industries that typically utilize captive power plants:
- Manufacturing: Cement, steel, chemical, textile, food and beverage and pharmaceutical industries have captive solar power plants to make sure that heavy machinery operates effectively, production schedules are not disrupted and quality standards are achieved to minimize downtime.
- Corporate Campuses and IT Parks: Data centers, servers and large corporate offices need to be powered all the time. Captive power is a sure source of energy, less reliance on the grid, and continuity of business even when power goes off.
- Mining: Remote mining activities will have unpredictable or poor grid connection. Captive power plants also allow the mining equipment, processing units, and on-site facilities to operate smoothly and safely due to the availability of stable electricity.
- Warehouses & Cold Storage: Warehouses that store perishable products require continuous power supply to refrigerate and control the climate. Captive power guarantees efficiency in operations and prevents spoilage of treasured inventory.
- Big Corporate Campuses: Captive power is advantageous in large Corporate campuses with high energy needs in HVAC, lighting, and other infrastructure since it will reduce the grid supply dependency, enhance energy stability, and sustainability objectives.
Conclusion
The CAPEX model of investing in a Captive Solar Project is a cost-efficient, predictable and green energy solution available to businesses. Having a clear road to energy independence, industries will be able to enjoy the lower prices of electricity, improved sustainability and financial savings in the long-term. GSE Renewable Energy offers professional advice and advanced solar technology to ensure that the businesses switch to renewable energy with ease.
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Frequently Asked Questions
Is captive solar power more cost-effective than grid electricity?
Yes, captive solar power plants typically offer significant savings compared to purchasing electricity from the grid, especially in the long run.
What exactly is a captive solar power plant?
A captive solar power plant generates solar energy for self-consumption within a business or industrial facility, reducing reliance on grid power.
What are the key differences between a Captive Power Plant (CPP) and an Independent Power Plant (IPP)?
A Captive Power Plant is designed for self-consumption, whereas an Independent Power Plant generates power for distribution to the grid or other users.
How does a captive solar plant differ from a group captive solar plant?
A captive solar plant serves a single business, while a group captive solar plant involves multiple businesses sharing a common solar installation.
What is the typical electricity generation of a captive solar power plant?
The electricity generation depends on the system size, location, and sunlight availability, but it typically meets a significant portion of the energy needs of the business.
What is CAPEX in solar?
CapEx (Capital Expenditure) in solar is the upfront cost to buy and install a solar system. The buyer owns the system and benefits from long-term energy savings and tax incentives.
How is CAPEX solar different from a PPA?
With CAPEX solar, the client owns and manages the solar system. A PPA (Power Purchase Agreement) involves a third-party provider handling installation, permissions, and maintenance, while the client pays for the electricity used.
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