Types Of Models Opex Model Open Access Capex Model Captive Use
OWNERSHIP TERAVON owned the Assets Customer owned the asset
INVESTEMENT Zero investment by the customer. Can instead invest that capital into its core business. No Investment of customer. 100% born by TERAVON 100% investment borne by customer
MANAGEMENT APPROVAL TIMELINES Quickly replicable and scalable because additional projects don’t need internal CAPEX approvals Typically requires long lead time for CAPEX approvals at senior management level.
WHAT YOU PAY FOR Pay only for electricity generated in day time by solar plant, no hidden costs, No O&M charges for company. O&M will be born by TERAVON. Pay only for O&M charges after system purchase, no tariff for solar electricity generated except banking & wheeling charges
PER UNIT SAVING 10-12% cheaper than Grid electricity Tariff 80% cheaper than Grid Electricity Tariff. Capital repaid through generated electricity
O&M TERAVON bears O&M cost Customer pays separately for O&M
PAYBACK(ROI) Savings from day 1 (Zero days) As high as 4-4.5 years
TECHNICAL KNOW HOW TERAVON handles all technical matters Dedicated team needed at customer’s end to evaluate system design, installation and operation
PERFORMANCE RISK TERAVON bears all the performance risk and is incentivized to maximized generation because revenues are linked entirely on generation Customer bears all the performance risk and must manage equipment & downtime losses
TAX BENEFITS No Tax benefits for customer Customer can claim tax benefit through accelerated depreciation
REGULATORY RISK AND APPROVALS TERAVON prerogative Owner’s prerogative
ROTATIONAL PBG Required for company to give Rotational PBG of Generated Day Time Solar Units for Security (Approximately 18 Lakh/MW) MAY BE REQUIRED FOR BANKLOAN
MINIMUM LOCKING PERIOD 5 YEARS 25 YEARS