Capex model for solar rooftop installation

In the capex model, small consumers buy the solar PV systems encouraged by accelerated tax depreciation benefits. However, if the government phases out accelerated tax depreciation in 2017 as expected, consumers may no longer choose to buy solar PV systems. In addition, the high cost of capital, lack of debt financing, technical performance risk and lack of reliable companies offering operation and maintenance services also discourage consumers from buying solar PV systems. So far the capex model has been the dominant business model in the rooftop solar sector in India. Currently, it has an 86% share of rooftop installation capacity (Bridge to India, 2016).
However, this business model is expected to decline in importance due to reductions in accelerated depreciation tax benefits and the rapid growth of deployment among commercial and industrial consumers, who prefer the opex model.