Date:

Name:

Student No: 404

Test Paper OCPM1CQA04

Business Models:

Question 0431:

Which are various business models for installation of solar power plants?

Capex model

Opex Model

Rent a roof model

Open Access Model

1.Third party

2.Captive Consumption

Megawatt plant under bidding

Question 0432:

What is common about various business models and solar energy is more of a financial product than an
energy product?

There need to be a power consumer with very high consumption.

Question 0433:

What are normal operation and maintenance costs for solar power plant?

The maintenance cost is very low as compared to savings.

Question 0434:

What are the advantages of Capex Model?

consumer, if commercial. will get income tax benefit by claiming depreciation.

investment is recovered in less than 4 years. Sometimes where power rates are very high, it
is recovered in less than two years. This consumer saves on electricity bill to the extent of solar power

units generated and consumed.

Question 0435:

What is the need of Opex Model and why the consumer does not want to invest in a solar power plant?

As compared with Capex model, in this case, the consumer is not willing to invest in the solar power
plant.so we need opex model. He doesn’t have money and need an investor to invest. For the mutual
benefits are more if we go for opex model.

Question 0436:

How does a consumer normally save on power costs in Opex Model?

The amount he pays to the investor per unit is less than the power he pays to the electricity company if
there is no solar power.

Question 0437:

What are the differences between opex model and rent a roof model?

In Opex model investor sells the solar energy to consumer.

In rent a roof model investor sells the solar energy to electricity board through grid. Here consumer is
not interested to buy.

Question 0438:

How does an open access model work?

consumer’s power consumption is so high that the roof and shadow free area available are

miniscule as compared to solar power plant capacity requirement.The solution is that a

megawatt power plant is installed on a vacant land which is far away from
the consumption point.The power is generated in this megawatt plant
and supplied to grid. The consumer receives the power from grid out of the power
produced from the megawatt plant.
Question 0439:

How does installing solar power help in becoming more competitive in business?

Because it is a kind of investment where after 3-4 years we get return of investment back and after that
it is completely profit. So it helps in becoming more competitive in business.

Question 0440:

What are the risks in installing solar power plant?

Construction risk, Environmental risk, Financial risk, Market risk, Operational risk, Technology risk,
Political and regulatory risk ,Climate and weather risk, Sabotage and theft risk.