India has added 513 MW of rooftop solar capacity over the past 12 months reaching total installed capacity of 1,020 MW. 22% of capacity addition in the last year has been built under OPEX model where a third party project developer finances and installs the system on rooftop owner/consumer’s premises and sells all power output to him under a long-term agreement. This model is extremely popular in the USA where almost half of the rooftop solar installations are owned by specialist OPEX developers such as SolarCity, Vivint, Sunrun etc.
- The OPEX model has been very successful internationally and remains so for Indian consumers who don’t want to incur upfront capital costs but still want to benefit from falling costs of solar power;
- Poor contract enforceability in India poses a significant risk to the growth of OPEX market;
- Given the many fundamental benefits of the OPEX model and its attraction for both the consumers and project developers, policy makers need to urgently focus on addressing this risk for long-term growth of the rooftop market in India;