When a business decides to go solar, the first question is rarely about panels. It is about money: should we invest in the plant ourselves, or let someone else own it? In India the two most common answers are the Captive model and the RESCO model.
The Captive model
In a captive project you pay for the plant – from your own funds or through a loan – and you consume the power it generates. Because you own the asset, every unit generated replaces a unit you would have bought from the grid at the full commercial or industrial tariff.
Why businesses choose it:
- The lowest cost of power over the life of the plant
- Full ownership of the asset and its depreciation benefits
- Freedom to choose your EPC partner, components and O&M provider
What to consider: you need capital or financing, and you take responsibility for the plant’s performance – which is why a strong O&M contract matters.
The RESCO model
RESCO stands for Renewable Energy Service Company. A developer invests in the plant, installs it on your roof or land, and owns it. You sign a long-term power purchase agreement and pay only for the units you use, at a tariff that is lower than your grid tariff.
Why businesses choose it:
- Zero upfront investment
- Savings from the first month
- Operations and maintenance are the developer’s responsibility
What to consider: savings per unit are lower than captive, and you commit to a long-term agreement – often 15 to 25 years.
A simple way to decide
| Question | Leans Captive | Leans RESCO |
|---|---|---|
| Do you have capital or easy financing? | Yes | No, or prefer to use it elsewhere |
| Is the lowest lifetime cost the priority? | Yes | Savings now matter more |
| Will you stay at this site for 15+ years? | Either | Yes – needed for the agreement |
| Do you want to manage the asset? | Yes, with an O&M partner | Prefer someone else does |
How Altura helps
We model both options for your site – using your real bills, roof or land, and load profile – so you can compare the numbers side by side before you commit. Whichever model you choose, our team handles the engineering, construction and long-term maintenance.
Request a proposal and we will prepare a Captive vs RESCO comparison for your site.
