Yellow Haze functions as one stop solution for solar power projects and also provides Institutional, Commercial and Industrial consumers with an option of switching to solar with their own investment (referred as Capex Mode).
Basic Features of CAPEX Model
The basic tenant of CAPEX Model is that the client incurs all the project cost upfront.
Higher Savings: While in BOOT Model (Zero-Investment Model) client pays solar tariff, in Capex Mode, the client does not have to pay any tariff and hence, there is considerably higher electricity cost savings.
Short Payback Period: Investment on Solar Power Plants (particularly rooftop) has attractive payback period of 3-5 years.
Accelerated Depreciation: Investment on Solar power plants is also subjected to accelerated depreciation which is an added incentive.
Risks: With higher return (because of investment), there is also associated higher project risks.
Overheads: As the project is owned by the client, so while there is no need for tariff payment, there is an annual expenditure for Operations & Maintenance of the solar power plant.
Yellow Haze Advantage:
Project Life Cycle Support: Yellow Haze functions not just as supplier but as project partner guiding the consumer through the various stages during the project cycle. Apart from Engineering, Procurement & Commissioning (EPC), we also support on right sizing the project, financing, O&M support post the contract period.
Optimization of EPC cost: Individually each project size is small but as we have a large number of projects, it allows us to strategic partnerships and leverage in procurement which translates to lowering of EPC costs, resulting in better quality & optimized costs.
Economy of scale in operation and maintenance costs: Power production, even through solar requires certain specific operations and maintenance processes, which incur costs. At times, these costs are unaffordable for smaller projects but because of our portfolio, our per over-head costs are optimized. This translates to better services, lower maintenance costs.
Advantages of specialization: Our dedication to power production through solar has brought in specialization of these processes, as a result, your plant is always maintained at optimum performance and prime condition.
Smart Add-ons: We offer smart add-ons on the project based on client requirement, including:
- 24*7 Real Time Remote Monitoring (On Desktop & Mobile)
- Flexible O & M Support contracts.
- Performance Guarantee in terms of unit production.
Types of Capex Mode Solar Projects:
The Capex model Solar Projects can be of two types depending on the location of Solar Plants.
On-Site: Solar Plant are located on the rooftop( or on land within the premises) of Consumer and electricity produced from the solar plants gets used by the client directly.
Off- Site: This facility is only available for Open-Access customers. Here, we setup plant at a distant location. The electricity produced from the plants gets transported through the distribution network to client location. In this type, apart from the initial Investment, operation & maintenance costs, the consumer all has to pay open-access charges & duties.